This is a question that we are hearing more and more often. Let us help you understand what’s happening in reverse distribution.
Today’s crediting structures vary by reverse distributor. This is because some reverse distributors are also contracted as processing and evaluation agents (3PLs) for manufacturers. When this is the case, return credits for facilities that use their reverse distribution services may be paid in a couple of different ways.
A. Reverse Distributors/3PLs may issue individual checks to customers for each credit they receive from manufacturers for whom they also process returns.
B. Manufacturers that do not use the 3PL/Reverse Distributor for processing may issue individual checks directly to the customer.
C. Manufacturers that do not use the 3PL/Reverse Distributor for processing may also issue individual drop-ship credit memos to the customer’s wholesaler.
Since these payments are issued individually (as a check or credit memo for each manufacturer and each return), the number of payments a customer receives can be quite numerous. Hence, the reason why your facility may be receiving so many checks! Read more >
