How to Reduce Repair Expenses Using Reverse Logistics
Using reverse logistics, you can reduce repair expenses and expedite turnaround for a superior customer experience.
Warranty and non-warranty repair expenses can substantially erode your firm’s productivity and profitability. However, developing and fine-tuning formalized processes – including the adoption of a warranty and repair management system – can improve outcomes in measurable ways.
If you view the repair process as simply a cost of doing business, you might be surprised by how well you can control that cost by applying best practices of reverse logistics.
The Challenges that Affect Warranty & Repair Expenses
Few companies can afford to build and staff repair facilities everywhere they have customers. This means you likely have a centralized approach to both process management and physical repairs. If you’re doing both in-warranty and out-of-warranty repairs, your processes will quickly increase in complexity.
Consider issues such as parts warehousing, inventory and management, quoting and collecting for-a-fee repairs, shipping, receiving, tracking and, for those items that can’t be repaired, replacement stock.
Unless you have formalized processes and a way to manage all these moving parts and pieces of the process, you could be leaking money from every aspect of the repairs process.
How the Customer Experience Influences Repair Expenses
When a customer needs a repair – whether that falls under or outside of your product warranty – they already have needs that aren’t being met. In other words, your product has failed them in some way.
Certainly, at least in some cases, the customer may be at fault for some needed repairs. However, even if that is the case, their expressed need for a resolution puts that ball squarely back in your court.
Although not a direct or hard cost of the repair process, the customer experience (good or bad) will affect your business in countless ways. Failing them in this endeavor will lose you repeat business, social mentions, referrals, and more.
Adopting a Warranty & Repair Management System
The good news is that you do not have to reinvent the wheel to get your repair processes and their associated costs under control. Instead, consider implementing an existing warranty and repair management solution like ReverseLogix.
Our innovative technology platform is a cloud-based SaaS solution that is both scalable and highly customizable. ReverseLogix facilitates every aspect of your repairs, including parts and warehouse management functionality that allows you to integrate suppliers and third-party stakeholders into the management process.
Our technology solution is as appropriate for the ecommerce sector as it is for traditional retailers, manufacturers, distributors and third-party logistics providers. ReverseLogix integrates warranty and repair management with other invaluable functions such as product registration, RMA initiation and management, asset recovery and disposition management.
Contact us today to see why some of the world’s most well-respected brands trust ReverseLogix to help run their reverse supply chain. We look forward to showing you how our technology solution can assist you in reducing your repair expenses.