An important function of reverse logistics is processing returned product from customers. Forward-thinking companies know that the return stream contains a treasure trove of valuable information about product quality, consumer response and design quality.

Incorporating track and trace software into the returns process can capture many data elements on a real-time basis.

• Manufacturing defects - especially important if you are using offshore or contract manufacturers
• Customer voice - what the customer thinks about your product
• Product repair information - symptom, problem, resolution, parts used

The data captured by the track and trace systems provide the information necessary for pareto analysis. In addition, these systems provide immediate unbiased measurement against management's key performance indicators (KPI).

As well as capturing information the incoming product, track and trace systems allow you to better manage the repair/refurbishment process itself.

Key process elements are:

• Product refurbishment turnaround
• Process volumes - received, shipped, work in process
• Cost to refurbish - a key parameter for the refurbish vs. scrap analysis
• Parts used - another key cost parameter

Track and trace systems dramatically improve the effectiveness of reverse logistics processing in several ways:

First, they increase the ability to capture more relevant information. These systems can provide this functionality quickly at a reasonable cost.

Second, they improve the timeliness of the information. Typically reverse logistics does not have a predictable flow of product into the process. Real-time information capture is a critical factor for parts needs forecasting and labor scheduling.

Finally, they reduce the bias in the information by capturing it as it happens directly from the process. A significant challenge for the CEO is information bias. Subordinates tend to tell the CEO what he or she wants to hear, which can contribute to hidden problems and surprises.

Norm Plummer, President - Haeiwacom, Inc.

Haeiwacom provides real-time track and trace solutions for manufacturing and service applications. Consisting of process control, warehouse management and document management modules, the Haeiwacom solutions are delivered as software as a service resulting in cost savings and straightforward, practical implementations.

Web: www.haeiwacom.com