Durable goods manufacturers have long played a part in the circular business economy, placing particular emphasis on improving productivity and streamlining reverse logistic supply chain processes to achieve time- and cost-saving benefits.
While a laser focus on operational efficiency is important in reverse logistics, it doesn’t always optimize the most important component in the equation: the customer experience. The old adage that the customer is always right is especially true when something goes wrong, a critical repair is needed to keep your customer’s business moving forward, or a customer needs to know when they can expect to receive what you’ve promised.
Optimizing reverse logistics for customer experience can make the difference between a customer that experiences momentary frustration and one who seeks out a competitor.
Fortunately, durable goods manufacturers are capturing the opportunity to improve the customer experience at every touchpoint, including key points in the reverse logistics supply chain (RLSC). According to a whitepaper by The Blumberg Advisory Group and Mize, durable goods manufacturers have “moved beyond looking internally within their organizations to find ways to cut costs and streamline operations. They are now looking externally at how customer-facing activities may impact the ability to scale and grow their reverse logistics supply chain operations.”
THE COMPLEXITY OF THE RLSC IN DURABLE GOODS MANUFACTURING
There’s no shortage of complexity in the reverse logistics supply chain and the challenges can be daunting—and resource-intensive. In 2020, Statista reported more than $636 billion in reverse logistics spending. They predict that number will exceed $958 billion before the end of the decade.
That complexity is inherent in durable goods manufacturing and compounded by the legacy ERP and supply chain management (SCM) solutions that lack the capabilities to overcome these challenges. Legacy systems often comprise disparate applications, which lack the business logic and process flow required to provide critical feature-functionality, robust reporting, and analytic capabilities.
For instance, a lack of integration can make it challenging for original equipment manufacturers, channel partners, and service providers to forecast necessary resources, like labor and parts, and scale-up in time when needed. It can also prevent seamless data gathering and transfer, causing channel partners to face inaccurate/delayed reporting and gaps between returns shipment and credit issuance. And for the customer, a disjointed RLSC almost always creates a frustrating return process due to issues like fragmented customer service, lack of repair status updates, and extended wait times.
THE COMPLEXITY OF THE RLSC IN DURABLE GOODS MANUFACTURING
The right depot repair solution will help to reduce operational costs, optimize service experience, and build stronger customer relationships. Depot repair is a critical component of RLSC that focuses on streamlining and automating the end-to-end repair process, from initiating a customer service request to delivering the repaired product back to the customer.
Mize Depot Repair Management is designed to fix inefficient processes at centralized repair depots, shortening product downtime, raising technician productivity, and lowering parts inventory costs on repair orders. In addition, its cloud-based digital platform improves visibility for all stakeholders, making it easy to communicate with customers and build stronger customer relationships.
DEPOT REPAIR IMPROVES VISIBILITY AND TRANSPARENCY FOR A BETTER CX
Customer expectations and supply chain obstacles evolve consistently, which means your approach needs to evolve as well. Mize offers a Service Lifecycle Management solution, including Depot Repair Management, that connects manufacturers to their end customers and everyone in between, reducing operational costs and maximizing the lifetime value of customer relationships.
Download Mize latest whitepaper to learn more about how leading organizations are optimizing the reverse logistics supply chain and better meet customer needs.
