The more value the customer receives the more confidence they will have in your company and all your other products. This enhances your brand name as well as your corporate reputation – and as we all know businesses are built or destroyed on their public sentiment.

Most consumers are creatures of habit. They will return to businesses they trust for replacements as well as additional purchases, even if they have to pay a little more for the items. When the customer is satisfied, they will spread the word, which increases business two-fold – from return customers and referrals. This is how companies like Sears, for example, have been able to stay in business for so many years.

In this age of technology there are more and more brands popping up. Many of which we have not yet heard of today will become big name brands tomorrow. Many more will disappear without making a dent in the marketplace. Too many larger companies have gone belly-up in recent years because they failed to make changes with the times, or simply lessened the value of their merchandise or services. There are no guarantees in this world, and consumers can be fickle if they find products or services that provide more value for their money.

What can a business do to increase their product value?

If you are a wholesale or retail business, one of the first things that need to be addressed is how you handle a customer complaint or return of defective merchandise. Do you listen to the consumers and address their issues, or do you simply give them their money back?

No customer likes to return merchandise because it is defective. It takes time out of their day, and they usually walk away with a bad taste in their mouths from the experience, even if they deal with excellent and upbeat customer service representatives.

A customer will walk away happier if they get a new replacement item at no additional charge – certainly it is expected if the merchandise is under warranty or within a short time of purchase. You will have saved the customer’s opinion of your business, even if they are disgruntled at the manufacturer. In that event you can recoup your loss by returning the product to the manufacturer.

But what if the merchandise is out of warranty, been discontinued, or past your policy for returns? What options can you offer your consumer in that event?

Make sure you have a policy or process in place that will benefit you and the consumer. By aligning yourself with a reputable business that concentrates on providing quality repairs, restoration or remanufacturing of products you can offer your customer the option of having the product repaired for a small charge, or offer them a replacement of the item that has been restored or remanufactured – at a fraction of the charge of the original item again.

It would also be to your benefit, as a retail or wholesale outlet, to have a section exclusively designated for consumers to purchase recycled items.

Best Buy has made significant increases in their business by introducing the “Geek Squad,” and as with all good ideas, other big companies have followed suit. If your consumer is satisfied, and you are able to restore your reputation by extending the life of the product and the services you can offer, all sides will be happy and you will have a win-win situation.

What happens to these end-of-life (EOL) products?

Often items that have been returned still have some life left in them – although you may find the life as it exist now may no longer be viable. This means the item may possibly be repaired, refurbished or remanufactured and then able to be resold, or it can stripped of minerals and hardware inside to be used in other products. Extending the life of an item involves different options, but will all add value to your company’s bottom line.

Some stores have an agreement with the manufacturer, or an outsourced resource recovery business, to handle all of these EOL items. Some have in-house resources in place to take care of this process.

After the product is distributed to its temporary home it is triaged, where it is evaluated as to the best course of action to take in order to get the best use of the product. It will be researched as to whether it is best to repair it, refurbish it, or if it is possible to bring it back to manufacturers specifications. If none of these options are workable, the product is then taken disassembled and all parts are cleaned and evaluated for workability.

Working or repairable parts will be set aside for use in other products.  All minerals will be salvaged, where they will be melted down for reuse.

Each of these areas will bring renewed life for the product, and profit for the business. In the past items that were returned were often simply thrown away. By changing your returns process your business will make money by the product being returned to the shelf, even at a discounted price, or by reselling to another outlet.

An essential part of this equation is to motivate consumers to bring the items back to be recycled. “The ultimate goal is to create a cyclical manufacturing system that is sustainable but also profitable,” says a Virginia Tech research team analyzing the value of product recovery on business and the environment.1

In addition, consumers need to be educated on the environmental impacts of recycling their old, unused or damaged electronics. In this economy consumers should also be educated on the financial benefits of purchasing products that have been refurbished. Everyone is seeking ways to save a dollar – businesses and consumers alike. By processing and purchasing recycled products businesses and consumers alike will save money, and the planet.

Recalls are within the framework of reverse logistics, but are under the umbrella of unusual circumstances. Many businesses do not have a contingency plan in place. This is a big mistake.

Recalls are put in place to protect consumers, and immediate action is required. A smooth plan to handle the situation will impress the public with your compassion and desire to keep them from any further harm. It will also serve to protect you from further liability and possible fines.

A survey conducted in 1999 by Berman,“Planning the Inevitable Product Recall,” published in “Business Horizons,” found that of the 500 consumer products reviewed, nearly one-forth had experienced a product recall.

A manufacturer or seller could be held liable for failing to fulfill a recall in a proper manner. The recall can be voluntary, or forced by a regulatory agency or courts. This would happen if the product does not measure up to advertised claims for safety or effectiveness, a safety issue is triggered by a design flaw or production error, scientific evidence indicates the product holds potential health hazards to safety or contains toxic materials, product tampering, unforeseen uses for the product that could be potentially dangerous or failure to meet safety standards.

Reverse logistics industry experts say “product recall is a situation that nearly every manufacturer will probably face at some time or another, no matter how meticulous its quality control procedures.”

What product recall measures and policies do you have in place? Are you handling them yourself, and if so, are you up on all the latest regulations that will affect the success of your efforts? Is your public relations department up to the task? Are you confident they have the personnel and plan of action for a quick turnaround in case a recall should happen?

If not, who is your third-party service provider? There are reverse logistics firms that specialize in handling product recalls, from contacting the Consumer Product Safety Commission to handling the return flow of products.

According to Business.com, the following steps are essential to assure your product and brand integrity are preserved:

1. Do your homework and locate a company that provides product recall management.
2. Evaluate their recall process to ensure you are able to work with them.
3. Select a product recall system that works for you, and can be implemented swiftly and efficiently.

For some, manufacturers’ product recall services start when the product is packaged. Software is available that allows them to quickly trace everything that goes into the product and then track shipments. This software can be integrated into your system.

Since product recall is an important aspect of the logistic process, many businesses conduct mock recall testing as a normal part of their operations. It’s better to be prepared and ready, and nothing happens, than to be caught unprepared.

Michael Schuler

COPPELL, Texas, Jan. 4, 2012 (GLOBE NEWSWIRE) — Product Support Services, Inc. (PSSI), a specialized provider of service supply chain and reverse logistics solutions for the electronics industry, today announced the company has hired Michael Schuler as executive vice president of sales and marketing.

Schuler brings more than 30 years of aftermarket services experience to his position at PSSI, where he will oversee sales and marketing operations, enhance service program development and provide strategic direction for PSSI’s future business growth.

According to PSSI President and COO Bill Biancaniello, Schuler’s successful and substantial background in service supply chain management, as well as a strong track record of introducing innovative product returns, lifecycle management and asset recovery programs, will enhance PSSI’s ability to develop and deliver innovative solutions for its customers.

“Mike has played a major role in the history of the aftermarket services industry. Working with leading PC companies including Apple, Compaq and Dell, he established some of the computer industry’s first national trade-in and value-recovery programs,” said Biancaniello. “We’re confident that his expertise will rapidly advance PSSI’s mission to bring PSSI’s financial and operational benefits to the broader electronics market.”

Prior to joining PSSI, Schuler served as the president of Micro Product Distributors, Inc., one of the largest suppliers of service parts to the personal computer (PC) industry. His experience includes 18 years in service parts supply management, reverse logistics, product audit, repair, remanufacturing and value recovery, as well as 13 years in the rental/lease and product remarketing space.

Schuler is an active member of CompTIA, a nonprofit trade association advancing the global interests of information technology (IT) professionals and companies. He has served on the executive council of its IT Services Section since 2004 and is slated to become vice chairman in 2012. The organization formally recognized Schuler for his service with its prestigious Industry Award in 2008.

A recognized expert and speaker on aftermarket service strategies, Schuler will represent PSSI at the upcoming Warranty Chain Management Conference in Orlando, Fla., March 6- 8, 2012.

“Greening” is the term used for a wide range of environmental concerns, and is usually thought of in a positive way. It is thought of as something beneficial to the planet and to the people who inhabit it. In terms of “greening”  logistics, the industry has made great strides in the last decade to begin tightening the gap between what can impact the planet and what can still make a business profitable. The answer is reverse logistics.

Traditional logistics of a business has always concentrated on the forward movement of items in the supply chain – like transporting, warehousing, packaging and inventory management – from the product producer to the consumer. Environmental concerns during the last 20 years have opened up a whole new niche industry – reverse logistics, involving the transportation of waste and the repurposing of used materials. With the technology industry taking on such upward momentum, reverse distribution and “green logistics” have been able to take advantage of a growing market.

There are three scenarios that take place that could impact the logistics processes of a company:

1. Greening can be mandated by government policies and legislation (the top-down approach)

The growing trend is for the industry (manufacturers and distributors) to take responsibility and control of the delivery, and the take-backs. They are hoping to be in the front seat when legislation and regulations are put into effect to mandate them to comply. It is not a matter of IF there will be regulations, but WHEN they will come, and no industry wants to be told how to handle their business. Many states have already passed, or have on the track to pass, legislation that will make major impacts – including fining the manufacturers for any of their products not disposed of properly, even if it is out of their control after the product leaves the sales floor.

2. Improvements can be initiated by the industry (the bottoms-up approach)

Government intervention presents an outcome that is not often predictable. The bottoms-up approach occurs when the business interests of the industry meets or exceeds the needs of the consumers – and the consumers want environmental initiatives. These changes would include the logistics industry finding more CO2-friendly ways to transport merchandise on both ends of the supply chain.

3. A compromise can be reached between the government and industry (involves certification)

The greatest impact on the environment happens when everyone works together. Attitudes would need to change within the logistics industry, as well as externally. We are beginning to see changes with the rise in the reverse logistics market. The idea of the three R’s (reduce consumption, reuse and recycle) is becoming increasingly popular. Companies are also seeing a positive advantage, as well as a competitive edge, by advertising their environmentally conscious green strategies.

In the end, pressure from within the industry itself can lead to greater environmental awareness and public education of proper handling of solid and hazardous waste. Companies that choose to lead the movement will see positive results in their bottom lines.

It is once again that time of year when reverse logistics executives need to start planning for Christmas returns.  For both retailers and manufacturers, the Christmas returns season is the by far the most important time of year. Your ability to process the tidal wave of returns during the first quarter of year will have big impact on your company’s bottom line.

In order to help you prepare for this, we have put together our own Christmas Checklist.  It’s like Santa’s list only it’s not about being naughty or nice; it’s about maximizing the value of goods that will be coming your way after Christmas and minimizing the cost of processing those goods.

Use our 31 Point Christmas Returns Checklist to ensure that all preparations have been made for processing all your Christmas returns. Just like those Christmas calendars, there is something for every day in December, but don’t wait until December to start planning.

The Christmas Returns Checklist

1. Update defective returns estimates based on sales since Thanksgiving
2. Update seasonal recall volumes by SKU and vendor / OEM / ODM
3. Review existing processed inventory waiting to ship – clear out as much as possible
4. Prioritize shipments by value and cube to reduce inventory and create space
5. Contact primary and secondary temp agencies and review requirements
6. Review management staffing and organization chart for the first quarter
7. Review volume estimates and plans for outbound shipping with carriers
8. Contact the provider of storage trailers and ensure adequate supply will be available
9. Inspect temporary space that will be used during peak season
10. Review plans for temporary space and storage trailers with Loss Prevention
11. Contact top 20 vendors / ODM’s to review plans and estimates
12. Review manpower plans for quality assurance and inventory control
13. Review plans with Systems to ensure NO major systems changes are planned during peak season or with any systems that directly interface with the RMS
14. Review plans for leasing temporary fork lifts and other power equipment
15. Review all parts supplies and ensure procurement plans and sourcing is ready
16. If additional shift are anticipated, procure addition lift batteries if needed
17. Review shipping plans and requirements with top salvage buyers
18. Review inbound sortation plans and shipping plans with internal Liquidation Department
19. Test all risers, security systems, and emergency procedures immediately
20. Schedule preventative maintenance ASAP for all equipment and conveyor systems prior to January
21. Review first quarter manpower plans by function, by shift
22. Review plans & volumes with recyclers and with waste management companies
23. Send any special instructions to all stores, branches, etc.
24. Notify all stores, branches, customers and/or vendors contact information during peak
25. Review plans of all outsourced repair vendors
26. Get reports of existing  backlogs for all repair vendors or outsourced support areas
27. Review weekly communications plans with key internal and external teams
28. Review aged files for any claims or disputes to clear up prior to year end
29. Meet with financial support systems management and review plans
30. Contact high volume vendors and ask if they have any plans to shut down during the first quarter for retooling
31. Have a merry Christmas! – Enjoy your family while you can!

With a good plan for peak returns season, and working through the 31 point Christmas Checklist, you can be assured the reverse logistics function is well prepared for this most critical time of the year.

Curtis Greve, Principal at Greve Davis – The Reverse Logistics Experts, is a recognized leader in reverse logistics and aftermarket services.  For over 25 years, Curtis has been considered a thought leader in the field of reverse logistics and returns processing. This article can be found at http://grevedavis.com/2011/10/23/how-to-plan-for-christmas-returns/.

The Environmental Protection Agency (EPA), Department of Transportation (DOT), Council on Safe Transportation of Hazardous Articles (COSTHA) and federal, state and local entities addressing the handling of hazardous materials (hazmat) are constantly updating regulations and procedures. With growing concern for the environment, there is more pressure on the manufacturers, wholesalers and retailers as to how they should properly handle items being returned by the consumer.

Within the next 3-5 years, there is expected to be an increase in products being discarded and returned, as well as more regulations that will affect everyone along your supply chain. With more demand on manufacturers to produce more advanced high-tech products, and the lifespan of products getting shorter and shorter, the number of potentially hazardous products being returned or discarded annually will increase exponentially. This means that reverse logistics in your supply chain is going to become more complex. Many items you may not think contain hazardous material actually can be the most dangerous.

Hazmat in the Supply Chain

Manufacturers, as a rule, know their products’ properties and they handle their returns in compliance with the laws and regulations that govern hazmat transportation, distribution and storage.

Retailers and wholesalers are not as well versed, due to the variety of items from manufacturers, and their employees handling returns may not be well trained in distinguishing and handling potentially dangerous products. Although they may not violate the laws and regulations that govern handling of hazardous material, there are bound to be some products the employees won’t suspect as needing special handling, which could create potential problems for your business.

The Reverse Logistics Challenge

Managing returns is much more complex than handling incoming merchandise. When items arrive at stores, they have already undergone all the safety precautions. The items have also had the proper labeling included in the packaging that would notify the consumer of any hazards. After products are returned, the packaging is often gone. The product may have been damaged; it could have leaks, or there may be some residual materials added that should be treated with special care when transporting back to the manufacturer or the disposition facility.

If you do not have a program installed and enacted, with well-trained personnel who are constantly keeping in line with new regulations and who are following through on the proper care of returns, you are putting your business at risk. If you are not able to train your staff in handling returns properly, it may be worth your while to look into a third-party business (3PL) that can. They are knowledgeable about current laws and regulations concerning the disposal and handling of hazardous material. They will make sure to keep you in compliance in order to avoid expensive fines and legal action.

But that tide seems to be turning now, as developing nations are growing and becoming economically more viable. Due to increasing wages and transportation costs overseas, the cost of doing business offshore is rising.

For remanufactured products, there is a growing concern about environmental issues and regulations. Some U.S.companies are addressing these regulations by sending the products overseas to be broken down, and repaired or repurposed.  But does that really solve the problem? With more light being shed on environmental risks from e-waste and  an increasing need to conserve resources, U.S. remanufacturing companies are gearing up to meet that need.

As we continue to see globalization on shaky ground, now is the time to seize the opportunity to return our recycling and e-waste industry back to our shores. We have the knowledge and the capability. An increasing number of U.S. remanufacturing companies are ready and willing to take up the gauntlet to revitalize and renew an industry. They are ready to help other companies meet the challenge of increasing profitability, while cutting costs and being environmental stewards today…and well into the future.

According to their Bureaus of Labor Statistics, wages inChinaandIndia(the top two countriesU.S.manufacturers have utilized for outsourcing) have risen significantly in the last decade, withChina’s increase in wages at a whopping 19% andIndia’s a few percentage points higher than that. Meanwhile, in theU.S., the rate of job growth has remained at a steady 3%. It won’t be long before what once was a significant gap in payroll expenditure will be leveling out.

In addition to increased offshore wages, companies must consider:

• Transportation costs
• Unpredictable turnaround times
• Lower product quality
• Increased angst among consumers toward companies that outsource out of country
• Possibility of taxes being placed on imported goods into theU.S.

As you can see, the savings from offshore outsourcing decrease incrementally and could make the practice a thing of the past.

That doesn’t mean outsourcing is not still a viable alternative for many companies, but it would make more sense to outsource WITHIN the U.S. as opposed to overseas. This is especially true in the area of remanufacturing technology products.

As environmental groups place more and more pressure on the state and federal governments, regulations are mounting to make manufacturers liable for the use and disposal throughout the lifetime of the product, even if it is out of their control. By outsourcing end-of-life products to companies that specialize in logistics and processes needed to ensure compliance by repairing, reconditioning, remanufacturing and recycling products, manufacturers and wholesale/retail outlets can see an increase in profit and a decrease in liability from fines and legislative review.

In the case of e-waste, electronic items such as computers, microwaves, video games, monitors, cell phones and other products that are nearing the end of their useful life, there are many more considerations than landfill space to consider. Without proper control and disposal methods, the toxic portions of these items will damage our environment, infrastructure and water supplies even more than it already has.

A reputable electronics manufacturing business can not only handle the increasing amount of e-waste (due to new technology and the need to get the latest and greatest devices), they can bring the majority of them back to life where they can re-enter the marketplace, bringing additional profit and lost revenue to the wholesaler/retailer, and reducing the liability to the manufacturers.

How much of your current business is turned over to brokers for offshore shipment that could be dealt with locally by different means, such as advanced bio-refining processes, repairing, reconditioning or remanufacturing? Are you certain you are getting all the useable parts out of the item before you dispose of it, and are you sure you are disposing of the waste in compliance with new and increased regulations?

A U.S.-based reverse logistics and after market services partner can help your company:

• Establish a more cohesive supply chain
• Capture lost profit/revenue through the repair, remanufacture and repurposing of electronic equipment
• Adhere to environmental regulations and business standards

Find renewed strength by outsourcing your work within theU.S.borders, while also helping the local economy by bringing more jobs back home.

Coppell, Texas (Oct. 17, 2011) – Product Support Services, Inc. (PSSI) today announced that Aquis Communications has authorized PSSI to assume the total multi-brand pager returns management system in support of 100 percent of the company’s extensive pager business.

PSSI’s services will include returns management, returns data collection, inventory management, cosmetic refurbishment, as well as test and repair services. This will support Aquis’ fulfillment of new customer orders, as well as the exchange order requirements of existing customers.

Aquis Communications, a subsidiary of ComSoft Corporation, provides mission-critical and time-sensitive communications services, including wide area and private paging systems, emergency mass notification systems (UnityAlert) and telecom expense management (TEAM), for government agencies, healthcare organizations, educational institutions, public safety and industrial organizations across the country.

According to Aquis Chairman Rick Gdovic, PSSI was selected to be the company’s sole source for returns, repair and refurbishment for its paging business in large part due to PSSI’s exceptional quality, quick turnaround and excellent customer support.

“We believe this partnership will dramatically help us better serve our customers,” said Gdovic. “We look forward to working with PSSI as our returns and repair servicing center.”

Specializing in electronics repairs and returns management, PSSI serves more than 1 million pager customers throughout the U.S. According to PSSI President and COO Bill Biancaniello, the relationship with Aquis was a natural fit for both businesses.

“An effective returns management program can improve a company’s sustainability, profitability and customer service,” said Biancaniello. “We are looking forward to generating positive results for Aquis and its customers.”

About Product Support Services, Inc.

Based in Coppell, Texas, Product Support Services, Inc. (PSSI) specializes in electronics repair and refurbishment to help manufacturers, technology users, service providers, retailers and logistics professionals reduce operating costs and eliminate high levels of waste by extending the useful life of electronic products. For more information about PSSI, visit www.ProductSupportServices.com.

Contact:

Christi Chesner for Product Support Services

(214) 635-3023

cchesner@lewispublicrelations.com