Controlling the cost of warranty returns amid rising freight costs
WSJ article on annual logistics report finds:
- Costs for freight have risen steeply since the middle of last year because of rising interest rates, higher price of fuel, and driver capacity constraints
- Average freight rate per mile have risen between 20% and 30% so far this year
- Reduce the number of returns by capturing rich failure information on claims such as annotated pictures, diagnostic files, and even videos.
- If parts are being returned for quality analysis, use sampling techniques to bring back fewer returns rather than shipping back every failed part
- If parts are being returned to support supplier recovery, ship parts direct to the vendor instead of shipping to your warehouse and then forwarding to the supplier. You can avoid incurring double shipping costs by generating RMA and shipping labels to suppliers directly.
- Integrate RMA with multiple carriers to compare freight rates and select right carrier, and shipping method to optimize costs. Negotiate discounts for rates with select carriers based on consolidated shipping volume to reduce freight costs.
- Implement remanufacturing practices to restore products or parts to like-new condition, and make a profit on redistribution and sale of remanufactured goods
- Process returned parts faster to reduce warehouse storage costs by integrating reverse logistics, shipping, and receiving of returns with warranty claims process
- Capture inspection results from returned goods to analyze the failures and optimize return decisions
- Provide training and tools to technicians to reduce unnecessary returns in NTF (No Trouble Found) situations
Request a demo now to learn how you can optimize and control your warranty return costs.