3. ®
Introduction to
Veterans Alliance Resourcing
Aftermarket Service Industry Consulting
• Sales & Business Development
• Reverse Logistics
• Depot Repair
• Parts Supply Management
• Software Platforms (ERP, CRM, Service & Resale)
• Service Supply Chain Management
• Product Remarketing & Value Recovery
Staffing Services
• Executives and SMEs in Sales, Marketing, IT,
Operations, Purchasing, Logistics,
Compliance and Product Remarketing
A Service Disabled Veteran Owned Small Business
4. ®Agenda
Optimized Lifecycle Management
• Returns Management & Product
Remarketing
• Service and Parts Harvesting
• Depot Repair, Onsite Repair and Product
Exchange
• Technology Refresh and Trade-In Programs
• Understanding the Secondary Market
• Q & A
6. ®
Returns Management &
Product Remarketing
In 1994, Micro Exchange and other used PC
Dealers bought Truckloads of PC Returns
from IBM, Apple and Compaq at 10% of Cost
• Within 3 years, those same loads were
recovering 60% of Cost
• Within 10 years, recovery exceeded 80% of
original Cost.
• Today, a refurbished iPad sells for 90% of
retail (Net Recovery exceeds direct costs)
7. ®
Returns Management &
Product Remarketing
Product
Reconditioning
Warranty
Direct Sale by
OEM/Retailer
Not a Focus
Fear:
Cannibalize
New Product
Sales
Costs Applied
without Data
Market
Acceptance of
Used Product
Channel
Development
Factors
Impacting
Recovery
$
8. ®
Returns Management &
Product Remarketing
Key Performance Indicators
• Net Recovery
• Resale Channel Development
• Total Turn-Time
• Inventory Turns & Charge-Offs
9. ®
Returns Management &
Product Remarketing
Key Performance Indicators
• Net Recovery
• Gross Recovery less Costs for Logistics, Repair
(Labor & Parts), Kitting, Repackaging and
Remarketing, (add Warranty Recovery $)
12. ®
Returns Management &
Product Remarketing
Key Performance Indicators
• Resale Channel Development
• Diversity of Channels (Retail & Wholesale)
• Quantity of Resellers with Increasing Sales
Wholesale Retail
13. ®
Returns Management &
Product Remarketing
Key Performance Indicators
• Total Turn-Time
• Average time to repair, process and resell
• Return Privileges to OEM/ODM
• Market Depreciation (as much as 6% per month)
• Inventory Turns
• Turns by Count
• Turns by Dollars
• Charge-Offs
14. ®Service & Parts Harvesting
• In 1994, Service Electronics “SEI” became first sole-
source parts supplier to supply all post-warranty PC parts
for a major retailer.
• In 1995, SEI was awarded Vendor of the Year saving over
$5M in costs, increasing next-day fill-rates to 90%+
• Within 10 years, more than ½ of all post-warranty (retail)
PC parts were sourced from secondary market ($500M+).
• “This Part May be Refurbished” become an OEM standard
• Is Parts Harvesting and Secondary
Market Sourcing an integral
component of your
Supply Chain?
15. ®Service & Parts Harvesting
• 15% - 20% of all TV Returns have Broken/Defective Panels
• Cost to Replace Panel Exceeds value of TV
• Annual TV Defect/Service Rates <3.5% of Deployed TVs
• Broken Panel TVs could provide 100% of parts for Lifecycle
• Increased Parts Harvesting and Low Salvage Recovery
are Changing the Parts Supply Industry for TV Repair
16. ®
Depot Repair, On-Site Repair
& Product Exchange
• For over 30 years, the Rental/Lease industry has
made Returns Management, Audit, Refurbishment,
Repair and Re-Deployment of Whole Units an
essential component of their business model
• Shipments of Refurbished TV Cable-box units now
exceeds New TV Cable-box product shipments
• Do you employ refurbished product into your demo,
product exchange, depot repair or on-site fulfillment
strategy?
17. ®
Technology Refresh &
Trade-In Programs
Sample: Lifecycle exceeds 5 Years, 50% of Parts Needed for Lifecycle are
used after 24 Months and Whole Units are Available at 30% of Original
Cost, let Customers hold Parts Stock (as Whole Units) for Trade-In
$-
$200
$400
$600
$800
$1,000
$1,200
New 4 Mo 8 Mo 12 Mo 16 Mo 20 Mo 24 Mo 28 Mo 32 Mo 36 Mo
Market Value
18. ®
Understanding the
Secondary Market
• (Almost) every product sold has a secondary market that
can be cultivated
• The value of embracing the secondary market far exceeds
any negative concerns i.e. cannibalizing new product sales
• The value of used product is like water,… it seeks it own
level. Price must be balanced by availability, demand,
condition, risk, terms and resale channel
• There are KPIs that can be applied to show progress
• The opportunity for secondary market growth is based on
the delta between cost and resale (and price stability)
• Your service market should be an integral component of
any optimized lifecycle management strategy
19. ®
Questions & Answers
Michael Schuler
Veterans Alliance Resourcing, Inc.
2150 S. Central Expressway, Suite 200
McKinney, TX 75070
Tel: 972-200-5236
Cell: 940-300-1749
Mike@VAResourcing.com
