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REVERSE LOGISTICS PROGRAMS HELP REDUCE COSTS,MITIGATE RISKS
ESNA spoke with ReSolve, part of Arrow's newly launched reverse logistics group, which also includes Intechra, an IT asset disposition services company and Converge, an independent distributor, to discuss the importance of a reverse supply chain logistics program.
ESNA:What are ReSolve's key services?
Omur Bagci, director of global solutions, ReSolve: Resolve is focused on helping technology-driven companiesmanage service sparesmanagement and product returns. The product returns management streamis important because it offers significant opportunity for value recovery, cost reduction and new buying reduction when the returnmaterials can be used in the spares stream.We look at product returnsmanagement as a resource for recovery and potentially parts harvesting.
The service sparesmanagement programfocuses on supporting
the repairs operations or refurbishment recovery operationswith spare parts inventory.We take a very non-traditional approach to managing that.We don't look at spares inventory as a fixed cost of the operation;we look at itmore on terms of a variable cost that can bemanaged,mitigated and reduced over time if handled properly. We handle that through different value adds such as lean planning and optimization techniques.
ESNA:What entails a reverse supply chain logistics program?
Bagci:We're looking at the receipt, processing and disposition of field returnmaterial, andmanagement of repair and refurbishment operations. The receipt portion is of key importance becausemost of the time thematerial coming back fromthe field arrives in an unknown condition. Proper conditioning and grading of the product and proper identification of the returned product is the first barrier to entry towards amore successful process thatwill disposition that product properly,maximizing the revenue recovery fromthe stream.
ESNA:What benefits can companies achieve bymanaging a reverse supply chain?
Bagci: It's reducing the costs and increasing the value of the reverse logistics streamfor the organization overall. Right now the reverse supply chain operation is part of the greater supply chain and factors directly into the customer's or end user's satisfaction.
One of the things that the CFO keeps inmind today is the cost of 4 | April 2011
ESNA: Domost companies realize the importance of the reverse supply chain andwhat do they need to focus on?
Bagci: The answer is a resounding yes. Years ago, this used to be an afterthought, a stepchild of the forward logistics process. At this point in time, serious organizations are realizing that this portion of the supply streamthat hasn't been tapped in the past can impact their baseline in a positiveway.
Froman operational perspective, how to deploy a reverse
logistics operation is still best left to the experts at that operation. For a technology OEMthatmakesmoney developing products and shipping it to their customers,managing customer satisfaction in the field is themain business goal.When that product comes back fromthe field, how they treat that returned unit immediately impacts their bottomline.
Watch for part two of ESNA's interviewwith ReSolve in theMay issue.
www.electronics-sourcing.com
offering the company's service solution to the customer, which factors directly into the price of the goods. So companies that have a good handle onmanaging their reverse logistics operations have the benefit of efficiently running their operations, and thus reducing the cost of ownership for their customers. So the reverse logistics piece directly plays into customer retention and satisfaction.
Omur Bagci is director of global solutions at ReSolve
It's critically important in this climate when the returns streamis
getting larger and larger due to various reasons such as quickly changing technology profiles in themarketplace, and retailers and customers buying products sight unseen and then returning them. Thatmeans capturing that return data and processing it in terms of shaping the companies overall reverse logistics strategy is key to understanding customer behavior and reducing turnaround times on return of products.
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