Service Parts Management
and Recovery Logistics

For most organizations, materials are returned from the field through the reverse logistics function — whether they are product returns, damaged goods, or service depot returns. In most instances, the reverse logistics model employed is designed to minimize costs, allowing materials to accumulate over time and eventually be disposed of in an environmentally friendly manner.

Supply Chain Services

ReSolve offers organizations a comprehensive reverse supply chain testing and screening inspection process to review components and whole units received through the reverse supply chain for:

• No fault found (NFF)
• No trouble found (NTF)
• Potential warranty returns

When products test NFF, they can be introduced back into the supply chain to replenish finished goods as advance exchange inventory. When fault is identified, products may be repaired and/or refurbished to fulfill the same need. An advance exchange solution is the perfect option for retail end users who need to provide consumers with instant gratification, or enterprise end users who need to get mission-critical equipment running again as soon as possible.

Service Parts Recovery

Sometimes the cost of refurbishment outweighs the value of the product. Other times, the demand for a specific commodity makes it more valuable to disassemble the product and reuse the individual parts. ReSolve supply chain experts use market knowledge to help our clients determine the best path for returned materials. ReSolve can disassemble products and then sort, inspect, and test components to manufacturer specifications. Daily processing allows for further value recovery and velocity throughput.

When individual components are returned through the reverse supply chain, they move directly into the same sorting, inspection, and testing process. ReSolve research has shown that 70 to 85 percent of some types of returned electronic components test NFF, which means that they are perfectly good, reusable parts. These no-fault components can then be strategically reintroduced as service parts or, if unneeded, remarketed in the secondary market. ReSolve experts can also guide faulty materials through warranty recovery or, when no recoverable value remains, secure and compliant IT asset disposition.

Environmentally Friendly Recovery Logistics

A commonly untapped process, recovery of components for service spares inventory from a company’s reverse supply chain not only significantly reduces costs in procuring service inventory, but it also reduces waste disposal — introducing a green “reuse” theme into service parts management.

For more information on strategically reintroducing products into the service supply chain, contact us.