Many elements go into a robust reverse logistics program for an OEM. There is product returns management, which includes sorting, teardown, testing and inspection, and kitting. You may have repair vendors scattered all over the globe. Then you have your service spares inventory hubs and stocking locations, also managed by regional vendors.
There is a great deal of time, logistics planning, and expense involved in getting components and finished good products from one location to the next. Often the same parts and products are shipped back and forth from point A to point B multiple times. With every shipment, the risk increases of something going “not quite as planned.” And let’s not forget to mention how the service fees from all those different vendors really add up! Wouldn’t it be ideal if you could hire one vendor to manage your entire reverse logistics operation – from beginning to end – all over the world?
You can. It’s called all-in-one reverse logistics management.
ReSolve offers this service to large OEMs. The idea, while complicated in practice, is quite simple for the customer. ReSolve manages the company’s entire reverse logistics operation, creating a single point of contact for any other needed vendors. In addition, we create an all-in-one, strategically placed operations center of excellence and – when needed – move your other vendors in with you.
With all-in-one reverse logistics management, all your product returns come back to the same location. Even better, they are repaired in the same location. If there are services that ReSolve needs to outsource to specialty vendors, the vendors can set up shop in the same building. So the routing of parts for repair is no longer a process of calling a freight carrier and getting a truck. It is instead simplified to handing the part to another cage inside your location and then taking it back when the repair is done.
What are the benefits of such an arrangement? For starters, your company saves significant money on shipping charges and freight management. In addition, all-in-one reverse logistics management helps your company improve compliance and reduce risk. After all, whenever you ship materials outside your building, the chance of mishaps (such as data theft or environmental violations) necessarily increases. The more outside vendors you have to use, the more risk you are taking on. When you are able to keep all materials within the same location, there is much less exposure for your company.
To sum up: All-in-one reverse logistics management can help your company save money, improve efficiency, and better manage compliance and risk – all while simplifying the process and workload for you. Sounds like a good plan to me.