July 8, 2019
There are typically three types of providers within the Reverse Logistics & Repair industry: Original Equipment Manufacturers (OEMs), outsourcing repair to Same Unit Repair (SUR), and Reverse Logistics (RL) providers. While most providers can meet some of your needs, more and more carriers and brands are finding that Reverse Logistics Providers are best positioned to meet their full range of business requirements.
Over the years, mobile phones have become more reliable, which means that Level 4 – and often Level 3 – repairs aren’t necessary for most devices. Most Reverse Logistics providers can perform up to Level 3 repairs, typically covering the vast majority of repairs a mobile device might need throughout the lifecycle.
RL providers are often certified by OEMs. For example, in the U.S., Ingram Micro holds certifications from several major OEMs for mobile devices, which means you can work with a single trained and certified provider to manage reverse logistics and repair for various brands of mobile devices, tablets, etc. Certified Reverse Logistics providers also use certified parts from the OEMs whereasSame Unit Repair companies may not.
Speed of Repair
While Reverse Logistics providers may not be as fast as the Same Day Unit Repair service with a storefront miles from your home, Reverse Logistics Providers can typically provide faster service than an OEM. When looking at depreciation values over time, speed is critical to maintaining margin and recouping as much cost as possible on secondary markets.
Economies of Scale
Unlike Same Unit Repair stores, Reverse Logistics providers can perform diagnostic testing, grading and repair on several devices at once (and across several different manufacturers) — due to their significant investments in infrastructure. These economies of scale typically mean that RL offer the lowest cost option.
Ultimately, with the global market for secondary mobile devices projected to double by 2022 to over 290 million units worldwide, developing a reverse logistics strategy with a credible Reverse Logistics & Repair partner is critical for long term success.