RTV (Return to Vendor)

Posted in Operations and Supply Chain Terms, Total Reads: 10515

Definition: RTV (Return to Vendor)

RTV stands for Return to Vendor. It refers to the process of return of goods that takes place between a user or retailer and a vendor. It may consist of return between user and retailer that sends it back to vendor. In some cases, user may directly send the goods to the vendors.

It involves following activities:

• Return of goods

• Repair

• Resend replacement, Otherwise refund for the good

In RTV, quick movement through reverse logistics is highly important in order to keep trust intact. Otherwise, it spoils the relationship between vendor and seller.

The vendors often try to fix the problem (e.g. related to installation or configuration) faced with goods as return of goods can be costly for vendor and inconvenient for end user. So, any return that can be avoided, benefits both the parties.

The reasons for initiating a supplier return are as follows:

• Receipt of a defective product

• Receipt of a wrong product

• Receipt of too many items

• Items shipped in error

• Items no longer needed by the buyer

• Wrong order placed by the buyer

• Wrong specifications of the product given by the buyer, etc.

In a RTV transaction the vendor can either replace the product, take back the product and refund the money to the buyer, take back the product and provide store credits to the buyer, ensure the repair of the product, etc. depending upon the requirements and the specifications provided by the buyer or the customer.


Hence, this concludes the definition of RTV (Return to Vendor) along with its overview.


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