In recovering value from scrap materials received through the product returns reverse logistics function, REL’s testing and inspection process helps identify hidden value through our return materials warranty evaluation process.
During the return material authorisation (RMA) management screening process, each component is tested and inspected to identify materials that currently fall under manufacturer warranty for credit recovery. The condition of each module is recorded, and the RMA process is managed by REL to ensure timely warranty credit. Materials determined to be out of warranty are properly recycled following REL’s disposition strategies.
All RMA management data collected is analysed and shared with part owners and, when applicable, the original device manufacturer, which allows REL and our partners to work with the original design manufacturers (ODMs) to help improve their manufacturing QA processes.
Warranty Evaluation Benefits
It is estimated that more than half of technology firms use warranty claim processing systems. However, these systems are used primarily for materials identified as substandard in the forward supply chain. In most instances, materials that are received through product returns or the reverse logistics function remain under warranty but are aggregated in warehouse depots waiting for disposition, while warranty periods expire and the value of remarketable components declines.
Utilising REL’s RMA management system to process reverse supply chain warranty returns increases the speed of returns and value recovery through the reverse supply chain. Since the average technology-based product has a life cycle measured in months, RMA materials are quickly sorted and processed on a daily basis, allowing for greater warranty recovery than is the case with materials collected and stored for periodic processing.
For more information on RMA management from REL, contact us.