High-tech returns
Posted April 24, 2007
With the increasing complexity of wireless devices on the market, it’s not surprising to learn that the volume of cell phone repairs and returns are also on the rise. It’s simple arithmetic: The more features on a cell phone, the more potential for components to malfunction.
With this increase, some cell phone carriers are adopting third-party logistics providers to manage customer repair and returns.
“We currently perform reverse logistics and repair for clients such as Verizon Wireless, Motorola, and MetroPCS,” said Joe Hauck, director of business development at New Breed Logistics Inc. headquartered in North Carolina. “For Verizon Wireless and MetroPCS, their customers return a handset in need of repair to one of their stores where they immediately receive a replacement unit. The replacement unit is uploaded in the store with the customer’s information and the phone in need of repair is shipped to one of our operations in Fort Worth.”
At New Breed, the phone is triaged, radio frequency tested (in- and out-signal strength), function tested, flashed to remove all customer information, and loaded with the latest software version. Cell phones are repaired at the New Breed service center, re-tested, and placed into inventory as field replacement units. These refurbished units are made available to the stores for customers who require a replacement phone.
Demand-supply planning
New Breed has developed postponement strategies to assure that adequate replacement unit inventory is available. “Determining just how many units should be refurbished and held in stock is critical,” said Hauck. “If you don't have enough available, then you will have to give the customer a ‘new’ handset and that can be expensive. If you have too much stock, then you have paid for refurbishment and repair that should not have been performed.”
By implementing this turnkey solution for managing reverse logistics and repair, cell phone carriers have enhanced control of the returns process, reduced inventory and transportation costs, reduced return/repair cycle, and increased overall customer service.