The Service Business

Ways to Improve the efficiency of returns

Maintaining visibility of spares in the field with each engineer is fundamental to improving efficiency.  With knowledge of the volume and type of product in the field at any one time, and a prediction of the time of its return, the requirement to purchase new stock will become more accurate.   

Secondly, apply a yield to the returns process.  Based on every 100 units which go out, how many do you expect back?  Once a trend has been identified, forecasting the volume of returns (and associated costs) will become easier.

In terms of transportation – look at the methods. Do you need the inventory returned within the hour, within the day, or at a later stage?  If you have sufficient inventory to meet demand, use a slower method for returns – it’s cheaper.

Also, apply consolidation principles.  Cost is incurred relative to distance travelled and the number of touch points, where the material is handled.  So replace multiple trips with fewer larger collections, route returns directly to the repair of waste processing centre; and where necessary scrap within the country.

Finally, incentivise field engineers to bring back the returns. And work with them to do this relative to need and cost.

Phil Smith, director, The Service Business

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