Leading companies in the electronics and high tech industry are working on strategies to reduce the large amounts they spend on activities associated with returned goods and to streamline their return-and-repair processes, thus helping them to become high-performance businesses. A recent study by Accenture, “Big Trouble with No Trouble Found: How Consumer Electronics Companies Confront the High Cost of Customer Returns,” found that in the United States alone, the consumer electronics industry spends around $13.8 billion annually on assessing, repairing, reboxing, restocking and reselling returned merchandise. Most companies are not fully accounting for the breakdown of these costs: - Returns processing: 9 percent.
- Rebox and repackage: 9 percent.
- “No trouble found” processing: 20 percent.
- Warranty and repair: 29 percent.
- Scrap and liquidation: 33 percent.
Rethinking their approaches to customer returns, electronics & high tech firms can expect four potential benefits: - Reduction in overall volume of returns.
- Reduction in expenses linked to returns for manufacturers.
- Reduction in costly customer interactions and associated administrative burden for retailers and others in the value chain.
- Reduction of the impact on brand and customer loyalty related to returns and unmet expectations.
More information Accenture research indicates that return and repair processes must be decoupled to achieve greater profitability and support high performance. Explore the findings of Accenture’s study into the role of “no trouble found” in the consumer electronics industry. To learn more about Accenture Services, sign up for My Outlook, your single e-mail source for all of Accenture's latest ideas and innovation, personalized specifically to your business interests and the industry issues you face. Next: Why Accenture |