The purpose of this paper is to provide multidimensional understaning of the management of feedback from customer product returns (warranty claism and complaints specifically) as well as of the management practices that enable the emergence of product returns in the context of knowledge management. Characteristics of product returns and their management indicate that to manage product returns requires specific knowledge management as the nature of their management is rather complex. Customer product returns are bearers of potentially rich feedback about some gaps, mistakes or problems in performance of forward value creating and delivering processes in forward supply chains. Jayraman and Luo (2007) label this potential hidden in product returns as a wealth of information that can be returned into the wealth of knowledge if knowledge management is applied. Understanding of feedback concept for the purpose of product returns avoidance management and its linkages with knowledge management through the theoretical review was performed in the first stage of research. Second, Soft Systems Methodology (SSM) to analyse the very complex situation, as the product returns do present, provided the conceptual framework for empirical research (McKay and Marshall, 2011). Research itself was realized in the small printing company where product returns do not lead to any extremely serious problems in the financial performance but – according to the words of CEO – managers would like to find the way how to reduce them. One of the reason is that there are several secondary effects these returns have and the environmental urge is perceived to be still stronger. Principles and best practices of SSM were followed and the analysis of documents (related to product returns, product design, quality, production, supplier and customer relationship management and financial situation) together with the theoretical knowledge of feedback, customer product returns and knowledge management served as the basis for the action research with managers, employees, customers, one supplier and local community actors. The paper is the first attempt to apply current knowledge of feedback construct into the knowledge and product returns management. It is also the first attempt to apply SSM to product returns management. SSM is the systemic approach that helps to uncover multidimensional character of any problematic situation in any social system through the involvement of different actors and their different views and to bring some solutions. Paper presents how this methodology can be used when dealing with the origin and disposal of customer product returns to utilize feedback from product returns and to turn tacit knowledge into the explicit one to minimise or reduce these returns within and across the boundaries of a company.