Fulfillment outsourcing Case Study - Enhancing brand value and end-customer satisfaction with effici

Business Challenges - Fulfillment outsourcing
A top-tier OEM was not utilising the component parts from its out-of-warranty (OOW) notebook and desktop products to resupply its parts supply chain in the USA. For their Laptop and Desktop repair models they were wholly reliant on the purchase of ‘new-build’ parts, some of which had lead-times of 8 to 12 weeks. The FGS team approached the customer with a proposal designed to recover value from the OOW products by utilising an efficient ‘screen and repair supply chain optimization model’. The ‘screen and repair supply chain optimization model’ offered the customer the advantage of increased parts availability, whilst also delivering cost reductions for parts, and greater supply chain time efficiencies.

Client Requirements in Fulfillment outsourcing

* High quality laptop repair solution providing for same day Turn Around Time (TAT)

* Flexibility to cope with fluctuating repair volumes of between 500 and 1,400 units per day

* Lower customer repeat returns

* Lower overall repair and return costs

* On-site customer call centre representatives and engineers with seamlessly integrated systems

* Tracking and reporting capability and visibility to each unique customer return

* Increased levels of end-customer satisfaction with efficient and cost effective repair service


FGS Solution - Fulfillment outsourcing

* Consolidation of repair service into one strategic location reduced the amount of space and equipment needed to meet daily volumes (average 840 units per day), while also increasing the equipment utilization throughout the day

* Strategic geographical location of repair centre ensures the most efficient use of time with deliveries starting at 4:30 am and pick up as late as 12:00 am

* By utilizing our proprietary shop floor control system, FlexFlow, FGS are able to immediately receive ASN’s from customers and carriers to alert us to a shipment in transit. This expedites the receiving process, allowing us to account for the specific serial number and RMA number for the received unit, as well as account for any accessories that may have been received with that unit

* Shop floor control system also provides real-time feedback to our customers’ representatives and engineers, including status of the units, any customer holds or parts holds, and the actual repair technician notes accounting for the diagnosis and repair, including any parts removed and replaced during the repair activity.

* FGS assess any potential design or manufacturing supply chain issues for specific parts in the respective units and report those directly back to the client

* By accounting for all parts used, establishing warranty enactment processes, and managing parts for repair back into the supply chain network, FGS are able to significantly reduce the spare parts costs of repair

* Introduced a Customer Service area within the repair environment, which combines the FGS customer service representatives team and the clients CSRs team on-site for prompt technical diagnoses and communication to the end-customer


Results - Fulfillment outsourcing

* Increased ratio of Same Day TAT by 10%

* Decreased looper rates (repeat returns) by 22%

* Reduced total backlog by 75%

* Reduced awaiting parts holds by 93%

* Following 5 years of consistent high quality repairs and continuous improvements in TAT the client has recently selected FGS as its repair partner for it’s latest new model launches throughout the US