Case Study Series: Commitment to Customer Service

Service Provider and Contract Manufacturer Work Together to Benefit the OEM

Collaboration Among Providers to Attain Customer Goals


A Fortune 500 electronics manufacturer faced significant challenges concerning the management of in-warranty repairs for units produced by an overseas contract manufacturer. The essential issues included excessive turnaround times, and inflated shipping and administrative costs, all of which impaired supply chain efficiency and ultimately, customer satisfaction.

The manufacturer’s primary obstacles were centered around the management of in-warranty repairs for units produced overseas. The existing process was plagued with inefficiencies, notably:

  • Exorbitant turnaround times, averaging 60 days.
  • High shipping and administrative expenses.
  • Substantial inventory costs due to prolonged repair cycles.


These challenges not only imposed financial burdens but also jeopardized the manufacturer’s commitment to service excellence.


Solution: Renova Technology worked in conjunction with the contract manufacturer to perform the repair domestically in the United States. Manufacturers continually seek innovative strategies to enhance supply chain performance, especially in warranty management, where inefficiencies can culminate in elevated costs and diminished service levels.

For a leading electronics manufacturer, the engagement with Renova Technology presented a groundbreaking opportunity to address and surmount these challenges, setting a new industry benchmark for warranty repair management.

Results: The manufacturer decreased overall reverse logistics costs for this particular unit by 30%. A decrease in turn-around time of 90% led to a reduction in safety stock inventory of 36%.

Returning Product to Overseas Contract Manufacturer Proves Inefficient

Returning units under warranty back to the overseas contract manufacturer proved to be inefficient for an original equipment manufacturer. Turn-around time averaged 60 days, which meant the manufacturer needed to purchase 60 days worth of safety stock inventory for parts coverage. The transportation cost to ship these units overseas were seven times the cost of a domestic shipment. The contract manufacturer was also charging an additional handling fee for all No Fault Found units.

Manufacturer Selects Renova Technology to Perform Repair on In-Warranty Units on Behalf of the Contract Manufacturer

Due to Renova Technology’s history of technical acumen, and their proven ability to create customized reverse logistics programs, the Original Equipment Manufacturer selected Renova Technology from their portfolio of repair service providers to collaborate with their contract manufacturer to perform repair services on in-warranty products. This collaboration required assimilation in EDI, development of multiple billing capabilities, and being transparent with data to help identify failure trends and improve production. Renova also identified and intercepted No Fault Found units and processed these units at a fraction of the cost originally charged by the contract manufacturer.

Achievements & Outcomes

The strategic partnership between the manufacturer and Renova Technology transcended immediate operational benefits, yielding long-term advantages:

  • Sustainable Cost Efficiency: The substantial cost reductions achieved in shipping, administrative handling, and inventory management underscored the potential for sustained supply chain efficiency.
  • Enhanced Customer Loyalty: The marked improvement in turnaround time significantly bolstered customer satisfaction and loyalty, reinforcing the manufacturer’s market position.
  • Strategic Collaboration Expansion: Following the success of this initiative, the contract manufacturer expressed interest in expanding the collaboration with Renova Technology to other projects, indicative of the strategic value Renova offers to the broader electronics manufacturing landscape.

OEM Benefits with Maximized Supply Chain Efficiency

  • Turnaround Time Reduction: A dramatic reduction in turnaround time, from 60 days to an average of 6, enhancing customer satisfaction and service efficiency.
  • Cost Savings: Shipping domestically as opposed to internationally led to an 85% savings in shipping costs, alongside a 36% reduction in inventory costs emanating from the shortened repair and return cycle.
  • Economic Repairs of No Fault Founds: Renova Technology’s cost-effective processing of No Fault Found (NFF) units substantially reduced the financial impact of NFFs on the warranty management process.

Reduction of Operational Costs

Transportation Costs 85%
Repair Lead Time 90%
Inventory 36%
Total Savings $70+/ unit

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