Supply Chain & Logistics

Returns grading and disposition decisions

Decide the best disposition for each returned item — restock, refurbish, discount channel, liquidate, recycle — using condition assessment, current demand, and the recovery value of each route.

Decision supportRepetitive judgmentRevenueCost reduction

10–25%

improvement in value recovered per return

Opportunity assessment

Business Impact
3

Moderate impact. Meaningful cost or revenue improvement, likely noticeable at function level but modest relative to total business scale.

Feasibility
3

Moderate effort. Requires configuration, prompt engineering, and testing. A capable team can get there but expect several months.

Data Readiness
3

Moderate data needs. Works with data most businesses hold, but will likely need consolidation, cleaning, or reformatting before use.

Risk Exposure
4

Low risk. Limited external exposure. A human reviews output before it reaches anyone outside the team.

Change Complexity
3

Moderate people impact. Part of someone's working day changes. Requires training and some adjustment time, but roles remain broadly the same.

Tooling required

Computer visionSpecialist AI tool

Things to consider

  • Most returns operations apply a fixed rule per category, which is right on average and wrong on every individual item. Deciding per item against live demand is where the recovery uplift comes from.

  • Condition assessment by vision is reliable for packaging and obvious damage and unreliable for function. Keep functional testing manual for categories where it matters.

  • Speed of disposition matters as much as the decision. An item routed correctly six weeks later has already lost the seasonal value the decision was protecting.

  • Experiment starter: Run item-level disposition on one high-return category for a month alongside your existing rule. Compare realised recovery value per unit, including the handling cost of each route.

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