Retailers and manufacturers lose billions annually in return management. All companies, including automotive giants with ample resources, rely on software solutions for complex tasks. Inventory, warranty, and return management are complex challenges that must be addressed effectively to understand faults or shortcomings and create more efficiently designed parts.
In most cases, efficient parts return management software helps manufacturers or suppliers identify the root cause problem behind a defect or malfunction. This helps the manufacturers in creating better automotives thus increasing the reliability factor. Parts return management is a complex process involving participation from several departments and must be completed on time to meet customers' needs.
Through this blog, let us understand return management, the challenges faced during it, and how Intelli RMS helped streamline the process.
Process Followed by Intelli RMS
Parts return management can be defined as the process of taking back defective or malfunctioning products to understand the real cause of the defect and increase efficiency. The process of parts return management is much more complicated for the automotive industry than others due to the variety of spare parts. Let us understand the process of parts return management to know the real challenges associated with the management of parts:
1. Return Request Placed by Requester at the OEM or Supplier
The returning process begins with the return request being placed by the R&D team (Requester) of OEM or the supplier through the Intelli RMS. This process is usually initiated to analyze malfunctioning parts within their warranty period. The request includes critical details about the part including its serial number, the date of purchase, and the reason for return.
Through the return process, OEMs and suppliers can easily and systematically manage the process that has to be followed to improve the quality and design of the product. This enables the OEMs and suppliers to diagnose the root cause of the problem and manage such failures in parts in the future.
2. Verification and Validation by the Return Center
After the return order is placed successfully, OEMs cross-check the information provided about the product, including the serial number, purchase information, and exact description of the problem.
After the information is verified and confirmed, the return center at the OEM or Supplier finally approves the request to return the part and the return process gets initiated. The next step involves selecting a carrier.
3. Automatic Notification to the Dealer and Carrier
Once the OEM approves a return request, the dealer is automatically notified via a system-generated email. Simultaneously, the carrier receives a notification for pickup. The dealer then packages the item, attaches the barcode generated by the system for easy tracking, and selects the carrier and pickup time. Finally, the carrier collects the part and delivers it to the OEM's return center or the supplier.
4. Inspection of Returned Parts
The package gets verified at the return center through the barcode. The part is then given to the R&D team for inspection/technical analysis. This step is crucial as it determines why the part caused the malfunction and how can it be improved to avoid such instances in the future.
A quality check is conducted during which any obvious signs of damage or wear and tear can be identified. This test involves mechanical stress tests, software diagnoses, etc. The motive of this process is not just to identify the root cause of the problem but also to identify and store precise data that can be used in the future to make informed data-driven decisions.
Although the process of parts return management might not seem as complicated in papers, the geographical distribution of dealers is spread far and wide across the globe. This complicates the process considering several factors associated with time, importing and exporting taxes, and much more. Let us now understand how Intelli RMS contributed to making parts return management more efficient for an automotive giant.
A Case Study: How Intelli RMS Increased The Efficiency Of An Automotive Giant
Several challenges associated with return management often lead to inefficiencies and challenges in managing returns for this client. Let us look at some common challenges that this automotive company was facing and understand how parts return management software Intelli RMS helped resolve them.
1. Automation
The absence of automation in the parts return management system made the process more time-consuming, increased the chances of errors, and also resulted in a hike in operational costs.
With the help of our advanced RMS software Intelli RMS, certain crucial steps such as communication, live tracking, and return validation were easily automated. The OEM got better access to the entire return cycle while ensuring fewer errors and improving customer experience.
2. Communication Channel
Without a dedicated communication channel, OEMs, and dealers were not able to communicate efficiently. This often led to unexpected delays and misunderstandings. Inefficient operation throughout the process of parts return management ended up costing the OEM more than they expected.
We addressed these concerns and provided an efficient communication channel that enabled transparency between OEMs and dealers. The software ensured that every return request was handled with importance and was completed timely.
3. Utilization of Data
The automotive manufacturer realized that the absence of an efficient means to process and utilize past data was a major pushback in the growth of the business. Without analyzing the cause of return and drawing better solutions for the same resulted in constant returns and declining product quality.
We helped in enabling data analytics in processing return-related information. The software analyzes large data and makes data-driven decisions that are more mindful, reducing cost and improving quality.
4. Warehouse Operation
Without a proper warehouse operations system in place, the whole process of parts return management was suffering tremendously. The efficiency of the warehouse was constantly affected by poor management, poor visibility, and lack of organization.
With Intelli RMS, dealers as well as OEMs can easily handle returns, and receipts to inspect and ensure that the items are sorted and stored systematically. Organized warehouse, timely returns, and systematic operations increased efficiency.
5. Impact On Client Retention
Client retention is directly associated with the aftermarket services that the customer receives from the company or business. If the customer experiences repeated problems with the products and receives constant dissatisfaction, they are not likely to return. This impacts the long-term relationship that the customer could have with the business.
This automotive giant experienced something similar and was unable to keep up with their customer service due to repeated complaints related to parts. We provided an efficient return management solution ensuring that the process is more reliable and fruitful. We ensured that the spare parts returns helped the OEM to identify and act on defects, inefficient design, and engineering.
Wrapping Up
OEMs, dealers as well as suppliers need to focus on investing in the right RMS for their business to grow and become efficient. The challenges associated with the mismanagement of returns, inefficient communication, and improper maintenance of the warehouse can impact how the manufacturer diagnoses a problem associated with their parts. This affects the development of the business as the main motive behind retrieving a part is to improve their product altogether.
With Intelli RMS, automotive companies in the industry, that have been in the market for more than a decade can transition smoothly and anticipate expansion. Transparency and better organization skills ensure quicker service help them find better information and understand consistent returns of parts.
Our RMS ensures that customer satisfaction is paramount and it is crucial to enhance the parts as well as products to increase efficiency and retain customers. To know more about which return management software will suit your business the best, get in touch with us through our website and get a free demo today.
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