
The Challenge:
A large manufacturer of servers was performing hardware repairs internally.
Management had two primary concerns.
1. Quality of work was not consistent
2. Deviations in the number of returns was unaccounted for.
This customer
has approximately 100 servers coming in for repair each week. Outside
of the cost of the repair operation this customer had no data relating
to the types of failures, and what percentage was reported NPF “No Problem
found”
The SabeRex Solution:
The SabeRex DTR professional team listened to the customer’s needs and observed
the internal operation. SabeRex developed a customized returns process tailored
to the customer’s specific requirements. SabeRex’s quality control methods
were utilized to improve the quality of the repairs. A customized on-line
reporting system was also developed that allowed the customer’s management
team to view the status and progress of each unit. SabeRex also developed a
detailed reporting system that analyzed the data to help determine the causes
of failures. Many of the problems were corrected in the production phase. This
information ultimately resulted in a reduced number of returns.
The Result:
Direct cost savings due to improved efficiencies and lowered overhead costs were
initially 10%. Through improved start-up instructions on new products, developed
by SabeRex, the percentage of units where no fault was found dropped 50%.
With improved data reporting customer service was able to more accurately calculate
turnaround times for repaired units and improve the delivery schedule resulting
in an additional savings and improved customer satisfaction.
The net result was an increase in efficiency, customer satisfaction and real
savings of over $50,000 annually.
The Challenge:
A large global manufacturer of power supplies was looking to outsource their
reverse logistics operation of about 10,000 units per week. SabeRex was selected
as the provider of that service. The customer’s management team had two main
goals:
1. Save internal operational costs
2. Improve information and feedback regarding returned products.
The SabeRex Solution:
The SabeRex DTR professional team outlined and defined the requirements
based on face to face meetings and limited historical data that the client
provided. Although SabeRex was not the lowest bidder, our efficiencies,
experience, data collection system and competitive pricing allowed the
contract to be awarded to SabeRex. After implementing a layout fitting
this specific project the operation was transitioned from the client’s
site to SabeRex. The client had an on line portal view of all products
in receiving, on the line, in finished goods, and shipping. SabeRex
also provided information based on serial numbers of the power supplies
which have been returned for a third time so that these power supplies
would be scrapped. Finally through data collection SabeRex was able
to establish trending on the number of power supplies coming back and
the reasons for failure.
The Result:
This customer was able to realize a 7% savings under its original operational
costs as a direct result of outsourcing these reverse logistics issues
to SabeRex. Even larger savings were realized as a result of data collection
and trending information. SabeRex was able to identify an increase in
return of units. Early detection prevented a major recall which would
have resulted in hundreds of thousands of dollars in losses. This also
allowed our client to go back to a component supplier who had been providing
faulty parts and remedy that issue. Since Saberex has been handling this
customer's returns they have been able to achieve and maintain
very high levels of customer satisfaction.