It is common with high volume manufacturing OEM (Original Equipment Manufacturer) and ODM (Original Design Manufacturer), to encounter defects and quality issues on the production line. Design flaws, hardware problems, and process inefficiencies all make their own contribution to these issues. Many products that may be of a high quality are also returned by end users for several reasons, not what they wanted, change of mind, transit damage etc. As a result, a percentage of the products and materials being returned are prematurely considered waste and written off.
Returns Material Authorisation or ‘RMA’ should be considered as an extremely crucial step in any manufacturing process. RMA provides a systematic way of managing and categorising returns of faulty, damaged, and unwanted goods from customers. Having a streamlined and well-oiled RMA process ensures that organisations maintain an elevated level of customer satisfaction and has the potential to turn a negative experience (as outlined above) into a positive experience (speedy replacement, speedy refund, etc) – a well organised and user-friendly resolution to a customer problem.
A strong RMA partner can handle the full returns process and allows organisations to focus on innovation and development. An RMA partner can also provide valuable insight and data about the returns. These insights have the potential to result in improvements in quality and customer satisfaction. Data driven insights allow product owners to make informed decisions. Organisations can streamline their manufacturing processes, reduce returns and downtime. Real-time data allows key decision makers to adjust the production process and identify potential issues in manufacturing, in transport and on the customer journey.
An organisation’s RMA partner ensures that returns are carried out in line with legislation, and compliance is never an issue. RMA partners work to ensure that returns and materials are handled correctly for reuse, for repair and in some cases repurposed They are also very well versed in current regulations, so the environment is always front and centre. A strong RMA partner excels in compliance and leads the way in terms of optimised processes and best practice.
Adaptability and flexibility are also key factors to consider when choosing the right RMA partner. Your RMA partner can grow and expand depending on your organisation’s needs. A tailored and bespoke returns process is the best approach as one size does not fit all. Requirements change, so a flexible partner ensures that organisations are always on top of the returns process.
One example of a successful RMA partnership is our work with eir. IQUTECH have partnered with Ireland’s leading broadband provider to deliver streamlined, bespoke, and efficient RMA services. Since 2017 our partnership has grown and scaled to meet demand.
IQUTECH currently processes 80,000 eir units per month between modems, power supplies, and cables. We have successfully implemented a ‘repair to pool’ model as eir offers their products as part of the service, commonly known as “Hardware as a Service.” Repair to Pool allows companies that need their customers on their service for as much time as possible.
All products are tracked to serial number, where each item is inspected, cleaned, tested, repaired, or refurbished, and repackaged for reuse. We have been able to use our unique software platform to manage and optimise eir’s returns process, creating an effective solution that catered for eir’s specific needs.
For consumer electronics, which includes telecommunications, the standard NFF (no fault found) is 50% of all returns. 90% of all field fails are typically cosmetic which can be refurbished and the average failures caused by component fails from manufacturing is 2% with field failures a little bit higher at 5%.
If you are considering partnering with an RMA specialist and are curious about how you can benefit from choosing the correct partner then contact IQUTECH and we would be happy to discuss your unique business needs.
