REVERSE LOGISTICS MANAGEMENT & CONTINUOUS OPTIMIZATION

Year: 2017/2019
Location: EU & China
Industry: Automotive

Reverse Logistics Management

An automotive OEM fully outsourced the management of its reverse logistics network to Encory for their operations in Germany, Spain & Portugal. The German unit is further connected to 30 countries worldwide to steer and process part of their reverse logistics activities, including customs responsibility. The next big milestone has been setting up a warehouse unit in China – Encory´s ReLife Point to manage warranty parts returns. The key goal is maximizing process productivity and overall transparency of the entire supply chain network as well as qualifying parts for remanufacturing.

The Approach

To initiate and perform the takeover, Encory carried out the following tasks:

  1. Technical analysis of reverse logistics situation to identify bottlenecks and potential improvements
  2. Development of business case scenarios to facilitate the decision-making
  3. Definition of efficient collecting, sorting and recycling processes
  4. Implementationof regional sorting warehouses – the Encory ReLife Points – for processing return flows including customs integration and thereby generating cores for remanufacturing
  5. Integration of software and business intelligence applications to increase transparency and productivity for the entire reverse supply chain from the dealer to the Encory ReLife Points.

 

Value Added

The takeover of the OEM’s reverse logistics by Encory generated the following key benefits:

  • Cost & lead time reductions due to the release of bottlenecks within the reverse supply chain
  • Faster processing times result in faster pay-outs to dealers resulting in less working capital requirements
  • Easy to use return platform as IT solution
  • Continuous KPI tracking and customized reporting allows a transparent steering of processes and involved service providers
  • Secure and environmentally friendly recycling of parts not suitable for remanufacturing

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