Maximization of available resources in order to increase profits is the prime objective of most service and manufacture-related businesses. These organizations build strategic models for management of workforce, customer service, assets, etc. The combination of all these and a few other factors is known as service lifecycle management.
Service lifecycle management is a holistic approach that helps organizations to increase revenue potential by putting together service opportunities to form an integrated cycle, rather than be viewed as separate entities. It combines all-service based operations into a single, complex network of workflows and connected business processes. It brings together and optimizes critical business processes and resources such as contact center, field service, return and repair, logistics, sales and marketing, while also encompassing dynamic scheduling, business intelligence and service to customers.
An important component of service lifecycle management is reverse logistics, the last important step in supply chain management. Reverse logistics is the process of moving goods from their final destination to another point, back in the company, for the purpose of capturing value otherwise unavailable, or for their proper disposal. Reverse logistics covers the spectrum of damaged merchandise, restock, salvage, recall, recycling, disposal of hazardous and obsolete equipment and asset recovery.
More and more companies have begun to acknowledge the importance of reverse logistics because without a comprehensive return system in place, there can be a loss of millions of dollars in revenue. It is important for businesses to devise service management solutions for reverse logistics because they help greatly in reducing cost and increasing profitability.
Reusing and recycling cuts down the amount of waste fed into the supply chain while also reducing operating costs. Several businesses have been able to recover their costs from areas such as raw material procurement, manufacturing, waste disposal and regulatory compliance.
Other benefits of reverse logistics include immediate recognition of out-of-date components and high savings on warehouse stock. Service management solutions for reverse logistics ensure that refurbishment and replacement of products take place in less time.It combines all-service based operations into a single, complex network of workflows and connected business processes.
Service management software includes many features that streamline the extended services and re-connect them to the lifecycle, thus enhancing service lifecycle management. The software has capabilities of allocation cost to accurately reflect profitability, processing warranties and claims, checking customer credit, analyzing profit contributions and detailing returns logistics, in-house and outsourced repairs, etc. Together, all of these give a boost to a business’ bottom-line.