Returns Management & Supply Chain Support For A Major Payment Provider
I. Introductions, Requirements & Problems
Our customer, a major competitor in the payment solutions market that Allows small to medium size businesses and mobile businesses to take payments using smart phone technology. Approached us having recently launched a new product in to the UK market place, to act as a value added extension of their current services.
After a successful launch, our Customer needed an organisation to manage their returns from both their direct to consumer customers, and their retail customers. They approached their existing Logistics partners, but encountered various issues. At the front end when a customer wished to return a product, only a very limited amount of information was captured by the customer service agent, as to why they wished to return the product. Once the products were then returned there existing logistics partner, dealing with the forward logistics aspect of the service lacked the flexibility to deal with returns from numerous sources. And was also unable to determine the reason for return, listing only 2 possible reasons for return. Returned items were then placed in transit again back to the manufacturer for analysis, adding further cost, time, and often a short fall of stock within the service. As well as chargeable returns being sent, often when not necessary.
Our customers concerns were that many of the returned units may well have “No Faults Found”, and that an inflexible service, was leading to extra costs in terms of product analysis, once the unit was returned for repair when that may not be required, as well as the cost of replenishing stock with new units. There concerns also centred on a lack of information as to the reason for return which could help determine possible issues with their product or service and how these could be rectified. As well as determining which units could be re-introduced back in to their supply chain with the minimum amount of fuss and cost
II. The Solution
Once Exigo were approached we introduced a tailor made reverse logistics supply chain solution for our customer, that was flexible, adaptive and caught all the data regards returns that our customer required.
Exigo positioned themselves within the supply chain as the point of return from all sources within the service. Receiving in returned units, initially capturing the product data our customer required before working with them to devise a bespoke service that tested all returned units upon receipt. Every stage of the service was recorded on a bespoke system written for our customer that offered in-depth reporting for analysis.
This lead to up to 24 possible reasons for return as opposed to the original 2, with each faulty unit individually reported on. This in turn supplied our customer with the data they required to conduct an in-depth analysis of the service and determine the main reasons for return of the product.
In addition it meant all units returned that showed “No Fault Found” were very quickly and cost effectively, tested, passed, cleaned, repackaged, and re-introduced to their supply chain, greatly reducing their inventory requirements and associated costs. It also meant they could work closely with the manufacturer of their product to focus on the major faults to aim to improve the service and quality of product at the point of manufacture for our customer
III. The Results
Exigo have introduced a service that addresses the issues and concerns of the customer, drastically improving the visibility of the service and reason for return, whilst extracting and presenting the data required.
Average 62% Yield of No Fault Found returned product that can be re-introduced to the supply chain, reducing Inventory requirements, associated costs and reduced transit and repair costs of units normally returned for Repair
Three Main faults highlighted immediately that allowed our customer to work with the manufacturer to address and rectify the issue. This in fact highlighted a general manufacturing issue that allowed the manufacturer to alter process and address the issue across all their customers.
Clear fault reporting on all failed units, with up to 24 failures, determined from bespoke returns management, as opposed to the original 2.
Reduced administration for our customer with Exigo allowed direct access to work with the manufacturer, retail partners and distribution partners to streamline the service
Large cost savings per unit on all returned products
Exigo quickly introduced as a partner for forward logistics services including large technical roll outs for the UK and Australia, as well as large re-branding and re-marketing projects