Guidelines for Handling Replacement Orders and Incorrect Shipments

In order to streamline our order management process and maintain accurate data across systems, it’s essential that all team members follow the correct procedures when dealing with replacement orders and incorrect item shipments. Below are the key points to keep in mind:

? 1. Replacement Orders – Use With Care

We’ve observed a number of unnecessary replacement orders being created. These not only lead to operational inefficiencies but also distort our sales reporting. Please follow these guidelines:

• Replacement orders must always have a value of £0.
  Creating replacement orders with a monetary value inflates sales data inaccurately and risks misclassification by the Buying & Merchandising (B&M) team as new sales.

• Always check K3 before taking action.
  If an item has been dispatched but not delivered (for example, due to the customer not being home), do not create a new sales order.
  ➤ In these cases, the Returns Team will flag it for resend — you only need to rebook it in K3.

? 2. Handling Wrong Items Sent to Customers

If a customer receives the incorrect item:

• Do not create a new sales order.

• Instead, notify the team immediately so the issue can be addressed through an exchange processed in K3.

Why this matters:

• Creating a new sales order may result in a replacement item being shipped before the original is returned, causing inventory and financial discrepancies.

• This also triggers an unnecessary RMA (Return Merchandise Authorization), which can disrupt stock accuracy in NetSuite.

? 3. When Is It Appropriate to Create a Replacement Sales Order?

A replacement sales order should only be created in the following situations:

1. The customer has received the item and wants to exchange it for a different product (e.g., different size, color, or model).

2. The customer receives a damaged or faulty item.

In these scenarios, a £0 replacement sales order is appropriate and should be clearly documented in both K3 and NetSuite.

✅ Summary

By adhering to these guidelines, we ensure operational efficiency, maintain accurate data, and provide a seamless customer experience. If you’re ever unsure about the appropriate process, please consult with the Returns or Operations team before taking action.