Case Study: Cost Avoidance and Proactive Support
Commitment to Customer Service Through Depot Repair Services
Revolutionizing OEM Operations with Depot Repair Services
The evolving demands of manufacturing, coupled with an increasingly competitive landscape, are compelling Original Equipment Manufacturers (OEMs) to reassess their post-sale support strategies. Depot Repair Services emerge as a strategic solution, presenting a pathway to not only streamline operations but also significantly enhance customer satisfaction, brand loyalty, and operational transparency. This whitepaper explores the multifaceted benefits of integrating Depot Repair Services into OEM operations, supported by a case study where a Fortune 500 Point of Sale (POS) & ATM Manufacturer significantly mitigated future return costs.
Challenge: The latest roll out of the client’s best selling product was exhibiting failure of a certain expensive integrated circuit immediately upon installation. Essentially, the options were to initiate a new contract manufacturing run or to collaborate with a depot repair service provider.
Solution: Renova Technology quickly executed a very precise yet cost effective depot repair service program modify the existing product while the customer submitted a chip redesign to the integrated circuit manufacturer. At a technical level, Renova performed component level repairs including BGA replacement and rework.
Results: A Field Retrofit Order was executed, and Renova Technology prepared a reserve of modified boards for replacement in returned units. Ultimately, Renova successfully modified all 20,000 units. This strategy not only saved the manufacturer costs on future returns and potential expedited service fees but also preserved the loyalty of their end users to the brand.
Early Field Failures Force Costly Re-design
Sending warranty returns to the overseas contract manufacturer was inefficient for the original equipment manufacturer. The average turn-around time was 60 days, necessitating the purchase of 60 days’ worth of safety stock inventory for parts coverage. Moreover, the cost of shipping these units overseas was seven times higher than domestic shipping costs. Additionally, the contract manufacturer imposed extra handling fees for all units where no fault was found. The Commodity and Line Quality Manager collaborated with the Supply Chain Team to partner with Renova Technology in creating a depot solution.
Renova Technology Executes Precise, Cost Effective Rework
Renova Technology’s highly skilled engineers executed a solution to correct the faulty integrated circuit. After placing an inexpensive resistor in a delicate location adjacent to the BGA chip the unit worked correctly. This type of rework required a level of precision that few repair depots have the ability to perform. Due to the skills of Renova Technology’s technical staff, the manufacturer was able to develop a rework program with an immediately available inexpensive resistor and proactively service a majority of the units quickly, without having to wait for the redesigned chip.
A Field Retrofit Order was implemented and Renova Technology created a seed stock of re-worked boards to swap into returning units. Ultimately, Renova performed re-work on all 20,000 units.
Conclusion
As a result of Renova Technology’s commitment to keeping their customer’s profitable and ensuring the brand loyalty of their end users, the manufacturer was able to avoid costly service fees and a dip in customer satisfaction. Depot Repair Services represent a strategic investment for OEMs aimed at optimizing their operational model and achieving sustainable growth. Through specialized expertise, cost efficiency, and a focus on customer satisfaction, these services enable OEMs to refine their post-sale support and concentrate on their core business capabilities.
The success story of the Fortune 500 POS & ATM Manufacturer illustrates the potential of depot repair services to revolutionize OEM operations, presenting a compelling case for their integration into OEM strategies. OEM Executives, Supply Chain Managers, and Manufacturers are encouraged to consider the long-term advantages of partnering with depot repair service providers, recognizing the potential for enhanced operational efficiency, cost savings, and improved customer loyalty. With the right partnership, OEMs can set a new standard in product support and service, propelling their business towards future successes.
