So, what is an Advanced Exchange Repair Program (AEXR)?
At Renova, we use the term “AEX” frequently. It is an acronym for AEX “advanced exchange”. This simply refers to having a safety stock of new product on the shelf. The products are ready to ship the moment one learns that a device failed in the field, and the failed one returned for repair.
The good device and the failed device can wave to each other as they go in opposite directions (one back to the field and the other to Renova). In our latest blog series, we put together a few helpful considerations for teams looking to build up and improve their supply chain processes using Renova’s Advanced Exchange Repair (AEXR).
How does an “AEXR” program differ from standard “AEX?”?
It is easy; the “R” stands for repair. Of course, there are basic costs in determining the viability of AEXR: safety inventory, warehousing costs, repair costs, return shipping…etc.
Out of the gate, the first question is: How much safety stock is required? Operations always needs to know what the biggest expense might be. Safety stock has to be purchased (if it exists new) or built-up through Renova’s Repair and Return.
At Renova, we have a wealth of experience in determining the optimal quantity. Often, the safety stock quantity is not large, even if we are looking at a large installation for an enterprise client. We use a mathematical formula (part of our secret sauce) and can help your team ask the right questions for a successful AEXR launch.
So, what are the other costs? It is the expense of purchase of new safety stock is historically the greatest check box. We often hear “it is not” in the budget prior to even showing the savings. With Renova’s AEXR, the immediate savings come from building out by repair vs. purchasing new equipment to build a safety stock.
For this reason, we provide AEXR. Using our historical repair data (frequency, source locations of failure, nature of failure, etc.) we work with our clients to determine which products qualify economically and strategically.
Yes, we help determine the optimal safety stock amount, and optimize a program to repair failed equipment to build up that economical quantity at a cost substantially less than purchasing new.