Reverse logistics
Normally, logistics deal with events that bring the product to the customer. In the case of reverse logistics, the resource goes at least one step back in the supply chain. For instance, goods move from the customer to the distributor or to the manufacturer. Reverse Logistics refers to dynamics related to the reuse of returned, imperfect, damaged or unwanted products and materials. It is the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related assets from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal. Normally associated with consumer products like electronics, it can apply to commercial and industrial goods as well.
MWI considers itself a Non Asset Based Third-Party Logistics (3PL) provider in Asia and a partial Non Asset Based 3PL in the U.S. The Non Asset Based 3PL takes a high degree of control in the transportation and logistics including storage containers/pallets, warehousing, intra-warehouse movement, cartage, long haul freight among many elements, but does not actually own or lease those assets. As such, reverse logistics processes are directed by MWI, but delivered by other assets operators.
The goal of reverse logistics providers that MWI partners with is to sort, categorize, rehabilitate, or dispose of products that are returned for whatever reason. The burden of this process is often outsourced to third party logistics (3PL) providers that can accomplish these processes and store for re-deployment those products seem saleable to whatever customers the OEM deems appropriate. Fees are estimated on a cost of processing, storing and disposition plus a flat percentage fee.
Minimize your return costs by utilizing MWI return and repair services. Our reverse logistics capabilities include returned-goods management, inventory repair / return, and testing. Services include:
• Credit Validation
• Re-Classify
• Repair
• Re-Ship
• Return Management
• Re-working / Re-packing / Re-labeling
• Testing
EXCESS AND OBSOLETE SERVICES
The reverse logistics process includes the management and the sale of E&O as well as returned equipment, sub-assembled product and finished goods from point of sale back to the OEM. Original Equipment Manufacturers (OEM’s) typically suffer over-runs of products considered Excess; build-up of goods at the end of their life (but where there will be field-replenishment needs) and products that have been revised or replaced in which current sales will not continue - Obsolete. Like Excess, Obsolete products deployed in the field, like electronic active components or subassemblies may be needed at some point, at which time value is re-captured. In generally accepted accounting principles, companies are required to continuously review and mark down, or impair value of these E&O products.
MWI works with 3PL that can store either on consignment or for a small storage and rehabilitation fee these Excess and Obsolete products. The products are normally sold through broker networks, online auction site, and other third party electronic bulletin boards with restricted or member-driven audiences world-wide. The advent of web-driven auctions and product disposition bulletin boards has assisted 3PL’s in providing not only accounting and storage, but sale of products as field needs are generated. In terms of consumer products, the market is defined to re-sellers and excess online retailers like Heartland and Overstock as an example.
Fees are normally monthly storage plus a percentage of sale prices, contract revenue share, or simply a cash settlement upfront as the servicer assumes the role of re-seller.
Our partners offer our clients the following:
• Accurate fair market evaluations through MWI’s service networks,
• Accurate inventory accounting/cataloguing provides accurate asset breakdowns facilitating superior customer purchasing confidence,
• All material is pre-inspected, repackaged and relabeled (sanitized) and ready for same-day shipping,
• Customer reutilization programs
• Flexible partnered remarketing and revenue sharing programs,
• Global marketing strategies to reach nearly every possible potential customer using proprietary networks, broker portals, web sites and services-providers with top-rated broker accommodations.
• Innovative pre-authorized sale price program,
• Secure, segregated climate-controlled storage facilities
Reverse Logistics - Excess & Obsolete (E&O) Disposition