Goal : Increase consumer electronics OEM’s profit from returned inventory by reducing number of units scrapped
Achieved : Our Client achieved a 100% increase in the recovery value for their returned inventory. They also reduced the number of scrapped units by 48%. Vivitech’s cost effective return processing, repair and refurbishment capabilities enabled more units to be cost effectively refurbished and resold.
A major OEM Brand of consumer electronics was continuously challenged by customer returns. Their internal returns processing was incurring significant monthly costs for payroll and processing. Many returns were being scrapped since they were not cost effective to refurbish or repair. Additionally, their busy sales team was often selling the refurbished units at a loss, just to “get rid” of the refurbished stock and was constantly competing amongst themselves and causing channel conflicts.
The Vivitech TBUR Solution :
Vivitech Solutions signed an annual contract with OEM client and started receiving defective, non-OEM returnable and warranty replacement electronics products on a daily basis directly from OEM client and channel and retail customers. Upon receipt of the items, Vivitech was responsible for purchasing all OEM client return goods directly from the OEM client regardless of products or condition. Vivitech would then refurbish all products at their Mexicali facility and resell utilizing its own client authorized channels to maximum recovery.
We also provided our client access to our real time Web Based Reverse Logistics processing and Tracking System which our client used frequently to access our system to monitor activity, receipts and run ad-hoc reports for analysis and accounting purpose.
OEM client was able to achieve significant internal cost reductions and received higher return by utilizing Vivitech for the Reverse Logistics process. Additionally, the OEM was able to monitor and control the process right down to the detail of tracking each and every unit by serial number.