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January 11, 2016

How to Stop Leaking Millions of Dollars in Your Reverse Logistics Supply Chain

11 January 2016 – Imagine asking a quarterback to run a play without looking up to check out the defense, or buying a used car without taking it for a test drive. Without visibility, all youre operating on is hope. Clearly not the ideal strategy. And certainly not one your companys sales team would bank on. Yet, when it comes to the post-sale or service supply chain (SSC), hope, or guesswork, comes into play all too often.

The post-sale supply chain is critical to every product companys business. It fuels aftersales service, which can account for up to 80 percent of core profits and is a huge factor in customer loyalty. The problem is, the SSC is highly complex with many moving parts and stakeholder interdependencies (3PLs, customers, field engineers, repair vendors, spare parts suppliers, and more). Its very challenging to get a handle on, and as a result, its burdened by high cost-to-serve, causing OEMs to lose millions of dollars annually.

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