Product Reintroduction in Service Spares Management

Effectively managing service spares inventory requires access to many different supply channels. One commonly overlooked and untapped resource comes directly from a company’s reverse supply chain management process.

It is estimated that 70 to 85 percent of some types of products returned through a company’s reverse supply chain or reverse logistics channel will test as "no fault found" (NFF), which means that materials have been returned for reasons other than a product defect. Testing and screening of these returned components to strict manufacturer specifications enable NFF components to be returned into the service parts supply channel for reuse. In turn, returned material currently owned by the company is removed from the waste stream, fulfilling green obligations, and utilized to fulfill service part demand. This reverse supply chain management product reintroduction process also eliminates the need to purchase new components exclusively from procurement channels, thus dramatically reducing inventory acquisition costs and scrap disposition expenses.

ReSolve also offers organizations a comprehensive reverse supply chain testing and screening inspection process to review materials received through the reverse supply chain for no fault found (also known as "no trouble found," or NTF) products and components, and potential warranty returns. Materials are sorted, inspected, and tested to manufacturer specifications and then strategically reintroduced into the service spares supply chain through our service parts management process or, if unneeded, remarketed on the secondary market.

For more information on strategically reintroducing returned inventory into the service supply chain and ReSolve’s reverse supply chain management solutions, contact us.