Improved Vision Into Reverse Supply Chain Process Enables Customers
to Improve Efficiencies and Increase Service Levels While Lowering
Overall Costs
ModusLink
Global Solutions Inc. (“ModusLink’) (NASDAQ: MLNK), a global,
omni-channel technology and fulfillment provider, today announced the
launch of its new Aftersales
Management Solution, which will allow clients to reduce the cost of
their aftersales supply chain, increase their service level, and improve
reverse supply chain decision making throughout the organization.
It is extremely difficult to forecast the consumer’s reaction to a
particular product after it has been introduced to the market – not to
mention setting up a supply chain that reacts accordingly and correctly
predicts potential costs. The reverse supply chain has long been
overlooked by companies and seen as an unnecessary expense, with very
few taking the time to better understand and optimize the process.
The importance of aftersales management is highlighted in a November
2015 Aberdeen Group report entitled “Returns
Management Matters: The Biggest Hidden Secret in the Supply Chain.”
“Organizations must have better insight into how much and what is coming
back, control the flow of products, and avoid returns that shouldn’t
clog the network in the first place,” said Aly Pinder Jr., Aberdeen’s
senior research analyst, service management and author of the report.
“The strain returns management can have on the business is quite taxing.
Logistics costs, global trade costs and inventory processing costs –
among other things – put pressure on manufacturers and retailers as they
look to streamline returns.”
To try to solve the problem, manufacturers, sales channels and companies
insource a range of service partners – each covering one piece of the
reverse supply chain. These stakeholders very rarely take the time to
consider process improvement, cost reduction, or increasing the insight
in their reverse processes – all important aspects of the reverse supply
chain that are just as important to improve.
Companies are starting to view aftersales management as more than just a
necessary evil; when implemented correctly, it can have a major impact
on the success of a company. In fact, Aberdeen’s research found that
“organizations that have streamlined their returns operation have
achieved nearly $300,000 in annual cost savings.”
The challenge, however, is how to “untangle” the current reverse supply
chain, add additional solutions where needed, optimize and streamline
the processes – and then make weighted decisions based on the gathered
information that will apply to your entire global operations.
“Every unneeded expense adds up, especially in today’s economy,” said
John Boucher, CEO and President of ModusLink. “Which is why it is hard
to believe that so many companies don’t pay close attention to their
aftersales processes. Like any part of the supply chain, the reverse
supply chain needs to be optimized and streamlined to drive the maximum
value at the lowest cost. With our new Aftersales Management Solution,
companies can now do so.”
ModusLink’s Aftersales
Management Solution is a modular global system that combines
existing and new supply chain solutions, allowing companies to acquire
improved insight into their reverse supply chain, which leads to reduced
costs and increased service levels.
In addition to helping companies improve the way their aftersales
processes are run, ModusLink’s solution will also analyze the data
produced by the reverse supply chain cycle to discover patterns and
issues that can be corrected to cut down on the amount of product being
returned. Without regular analysis, correctable problems might be missed
– and by repeating those problems in future product versions, customers
could be turned off from your products forever.
The solution encompasses everything a company needs to properly manage
its returns operation, making it easy for customers to return products –
while at the same time, ensuring the company is driving the greatest
value possible out of each return. The solution’s features include:
-
Register/Prevent: ModusLink sets up a company-branded site that
customers access when looking to begin the returns process. Simple
questions determine why the product is being returned and help to
either prevent a return if nothing is wrong, or determine to which
facility a product should be sent.
-
Recover/Repair: ModusLink has encoded the return information so
that when the product arrives, the return facility knows what product
it is, why it’s coming back and what the next steps are:
-
Recovery: When there wasn’t anything
wrong with the product, it’s sent back to be re-sold. The customer
receives a new or refurbished product in exchange.
-
Repair: When the product is broken
but can be fixed, it is sent off to a licensed repair center to be
repaired and returned to the customer.
-
Pay: In some instances customers can receive a refund, which
can also be processed through the ModusLink solution.
-
Refurbish/Remarket: Once products are repaired, if not going
directly back to the customer (in cases where a refund or new product
was given instead), they can be refurbished and remarketed or re-sold
as is.
-
Recycle: If the product cannot be fixed, then it will be broken
down and sold to recyclers.
-
Report: Each return is registered and tracked within the online
tool, giving a real-time look into what is being returned, when, why
and what the ultimate customer resolution was.
Through a better understanding of the process, combined with information
about why products are being returned, companies can improve the way a
product works, change the way it is being marketed or sold, and even
speed the discovery of a defective part that is affecting a high number
of devices and causing returns. This insight helps to reduce the amounts
of NFF (No Fault Found) returns – and ultimately enables companies to
get a higher yield out of their returned products.
For more information on ModusLink’s Aftersales Management Solution,
please visit http://www.moduslink.com/solutions/aftersales.
About ModusLink Global Solutions
ModusLink Corporation, a
wholly owned subsidiary of ModusLink Global Solutions Inc. (NASDAQ:
MLNK), is a global, omni-channel technology and fulfillment provider
that gives clients real-time visibility into their end-to-end supply and
demand chain operations, with expertise and facilities worldwide to
manage forward and reverse logistics. The company’s operations are
supported by more than 25
sites across North America, Europe and the Asia/Pacific region. For
more information, please visit www.moduslink.com
and www.valueunchained.com,
the blog for supply chain professionals.
This release contains forward-looking statements regarding the benefits
of ModusLink’s aftersales management solutions. All statements other
than statements of historical fact are forward-looking statements. The
following important factors and uncertainties, among others, could cause
actual results to differ materially from those described in these
forward-looking statements: ModusLink's success depends on its ability
to execute on its business strategy and the continued and increased
demand for and market acceptance of its solutions and services; there is
increased competition and technological changes in the markets in which
ModusLink competes; and there are certain inherent risks associated with
providing services internationally. For a detailed discussion of
cautionary statements that may affect ModusLink's future results of
operations and financial results, please refer to its filings with the
Securities and Exchange Commission, including its most recent Quarterly
Report on Form 10-Q. Forward-looking statements represent management's
current expectations and are inherently uncertain. ModusLink does not
undertake any obligation to update forward-looking statements made by
the company.
ModusLink and ModusLink Global Solutions are trademarks of ModusLink
Corporation. All other company names and product names may be
trademarks of their respective owners.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160307005091/en/
Copyright Business Wire 2016