Product Reintroduction in Service Spares Management

Effectively managing service spares inventory requires access to many different supply channels. One commonly untapped resource comes directly from a company’s reverse supply chain management process.

It is estimated that 70% to 85% of products returned through a company’s reverse supply chain channel have what is known as no trouble found (NTF), where materials are returned for reasons other than a product defect. Testing and screening of these returned components to strict manufacturer specifications enable NTF components to be returned back into the service parts supply channel for reuse. In turn, returned material currently owned by the company is removed from the waste stream, fulfilling green obligations, and utilized to fulfill service part demand. This reverse supply chain management process also eliminates the need to purchase new components exclusively from procurement channels, thus dramatically reducing inventory acquisition costs and scrap disposition expenses.

Converge offers organizations a comprehensive reverse supply chain testing and screening inspection process to review materials received through the reverse supply chain for no trouble found (NTF), no fault found (NFF) and potential warranty returns. Materials are sorted, inspected and tested to manufacturer specifications and then intelligently reintroduced into the service spares supply chain through our service parts management process or, if unneeded, remarketed on the secondary market.

For more information on intelligently reintroducing product into the service supply chain and Converge's reverse supply chain management options, contact us.