![]() It’s very difficult for a small to medium-sized company to maintain an in-house compliance department. That partnership also reduces risks and costs associated with trade compliance. Lower carbon footprint with shorter transportation routes.That’s actually possible, with the right partner and the right processes.Ī proven, trusted partner company who already understands the rules, regulations, and business climate in the country can also help propel growth with: Customers will be thrilled when turnaround times shrink. In-region testing and screening means you can return usable inventory back to point of use more quickly. If you can leverage in-region test and screen processes at local distribution centers, it’s possible to move returned units back into the supply chain more quickly and minimize inventory levels, downtime, and transportation costs.īuy less, hold less, and ship less - those savings drop right to the bottom line.Īchieve Higher Customer Satisfaction with Improved PerformanceĪnytime you shorten the supply chain, everyone wins. ![]() You can meet or exceed customer SLAs and KPIs while controlling costs.Įvery company is challenged by the task of carrying the right inventory mix. When the returned product is tested for NTF upon receipt, a company can more accurately predict how many units will be out of service and for how long. No OEM wants a situation where customer service and support require air freight costs to avoid downtime and parts shortages.Īccurate data collection and analysis powered by in-region screen-and-test processes can be an ideal solution for many companies. You need a plan to provide service and support to all those new customers. Better Inventory Management and Lower Freight CostsĮvery company wants to expand, but not every company does the planning necessary to make expansion successful. ĭo you struggle with similar problems? A service supply chain partner with global reach and experience can help improve your test-and-screen and repair processes while keeping the product as close to your install base as possible. Our partner realized savings of $200,000 to $250,000 in the first year. Because we tested these units in-country, almost half of the returns could be quickly returned to the field - with no long detours to Mexico. We instituted a Go/No Go test at our distribution center and found NTF rates of almost 40%. There was no pre-screening and no visibility on NTF or failure data. Initially, all returns were going to a contract manufacturer in Mexico. Here’s a real-life example of how single-touch testing worked for one of our OEM partners. When this happens close to the install base, it reduces transportation and direct labor costs.Īnd even if your repair depot is not in the same location where in-region testing and screening takes place, you still save transportation costs because you’re not shipping perfectly functioning parts around the world. Failed units are repaired or scrapped on site. The NTF units go directly back into the field as needed. With single touch, the returned unit arrives at a regional service center for testing and screening. In contrast, the “single touch” model for test, screen, and repair lowers costs across the board. Each time a unit is shipped, someone has to create the paperwork, pack/unpack the boxes and handle the unit. The traditional reverse logistics model requires too much handling. Why Single-Touch Testing Can Be A Gold Mine An effective test-and-screen process that keeps the units close to your install base reduces transportation costs and increases customer satisfaction. Depending on the industry, NTF and NFF rates range from 10% to 50%. This type of high NTF rate on returns isn’t unique. The screening process revealed a 20% NTF rate, which meant that 20% of the products were returned to replenishment inventory within mere days rather than months. The solution was an in-country test and screen diagnostic process that screened for No Trouble Found (NTF) and No Fault Found (NFF) returned units. ![]() At times, air shipment was required because of shortages - which meant additional transportation costs. Field returns sat untested in a distribution center until packed for ocean shipment to the contract manufacturer in Asia. The company was experiencing a high level of returns, as much as $5,000 a month. That really happened after we implemented an in-region test-and-screen process for one of our partners. Imagine if a single process change could save your company $1.2 million in transportation savings in one year. Test and Screen: A Better Model for You and Your Customers Interior of large distribution warehouse with shelves stacked with palettes and goods ready for the market.
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