Where do OEMs have their RMA and in-warranty repair facilities?
If you investigate where OEMs and Contract Manufacturers locate their repair/rework facilities, usually they are located either internally, or they are using an independent 3rd party aftermarket repair service nearby.
Here are just two common-sense reasons for using an independent aftermarket repair service that is located within “slapping distance.” In this article, we assume the provider is a high quality “best-in-class” repair service provider, such as Renova Technology.
Lower Costs
Fortunately, transportation costs per mile have remained relatively flat over the last four years. However, the further shipped, the higher the cost. Using a local provider certainly shortens the distance from the OEM to the repair center.
Close proximity creates a “higher velocity of repair” for both in and out-of-warranty repairs and re-work. A higher velocity of repair results in smaller safety stocks and smaller safety stocks tie up less investment.
More Control
(“Slapping Distance”) The local provider should be within a short driving distance, if not actually located within the OEM’s physical facility. The ability for the OEM to stop-in for a visit, enables the OEM to have frequent oversight, periodic audits, and most importantly – change their priorities and objectives, which will be inevitable.
This is certainly true if the provider is a “best in class.” – frequently providing detailed repair/rework data analytics and reports to the OEM that strategically employed, result in driving down cost and the OEM’s customers’ brand loyalty up.
