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ModusLink Launches Aftersales Management Solution to Help Customers Improve Reverse Supply Chain Decision Making

Improved Vision Into Reverse Supply Chain Process Enables Customers to Improve Efficiencies and Increase Service Levels While Lowering Overall Costs

WALTHAM, Mass.--(BUSINESS WIRE)--Mar. 7, 2016-- ModusLink Global Solutions Inc. (“ModusLink’) (NASDAQ: MLNK), a global, omni-channel technology and fulfillment provider, today announced the launch of its new Aftersales Management Solution, which will allow clients to reduce the cost of their aftersales supply chain, increase their service level, and improve reverse supply chain decision making throughout the organization.

It is extremely difficult to forecast the consumer’s reaction to a particular product after it has been introduced to the market – not to mention setting up a supply chain that reacts accordingly and correctly predicts potential costs. The reverse supply chain has long been overlooked by companies and seen as an unnecessary expense, with very few taking the time to better understand and optimize the process.

The importance of aftersales management is highlighted in a November 2015 Aberdeen Group report entitled “Returns Management Matters: The Biggest Hidden Secret in the Supply Chain.” “Organizations must have better insight into how much and what is coming back, control the flow of products, and avoid returns that shouldn’t clog the network in the first place,” said Aly Pinder Jr., Aberdeen’s senior research analyst, service management and author of the report. “The strain returns management can have on the business is quite taxing. Logistics costs, global trade costs and inventory processing costs – among other things – put pressure on manufacturers and retailers as they look to streamline returns.”

To try to solve the problem, manufacturers, sales channels and companies insource a range of service partners – each covering one piece of the reverse supply chain. These stakeholders very rarely take the time to consider process improvement, cost reduction, or increasing the insight in their reverse processes – all important aspects of the reverse supply chain that are just as important to improve.

Companies are starting to view aftersales management as more than just a necessary evil; when implemented correctly, it can have a major impact on the success of a company. In fact, Aberdeen’s research found that “organizations that have streamlined their returns operation have achieved nearly $300,000 in annual cost savings.”

The challenge, however, is how to “untangle” the current reverse supply chain, add additional solutions where needed, optimize and streamline the processes – and then make weighted decisions based on the gathered information that will apply to your entire global operations.

“Every unneeded expense adds up, especially in today’s economy,” said John Boucher, CEO and President of ModusLink. “Which is why it is hard to believe that so many companies don’t pay close attention to their aftersales processes. Like any part of the supply chain, the reverse supply chain needs to be optimized and streamlined to drive the maximum value at the lowest cost. With our new Aftersales Management Solution, companies can now do so.”

ModusLink’s Aftersales Management Solution is a modular global system that combines existing and new supply chain solutions, allowing companies to acquire improved insight into their reverse supply chain, which leads to reduced costs and increased service levels.

In addition to helping companies improve the way their aftersales processes are run, ModusLink’s solution will also analyze the data produced by the reverse supply chain cycle to discover patterns and issues that can be corrected to cut down on the amount of product being returned. Without regular analysis, correctable problems might be missed – and by repeating those problems in future product versions, customers could be turned off from your products forever.

The solution encompasses everything a company needs to properly manage its returns operation, making it easy for customers to return products – while at the same time, ensuring the company is driving the greatest value possible out of each return. The solution’s features include:

  • Register/Prevent: ModusLink sets up a company-branded site that customers access when looking to begin the returns process. Simple questions determine why the product is being returned and help to either prevent a return if nothing is wrong, or determine to which facility a product should be sent.
  • Recover/Repair: ModusLink has encoded the return information so that when the product arrives, the return facility knows what product it is, why it’s coming back and what the next steps are:
    • Recovery: When there wasn’t anything wrong with the product, it’s sent back to be re-sold. The customer receives a new or refurbished product in exchange.
    • Repair: When the product is broken but can be fixed, it is sent off to a licensed repair center to be repaired and returned to the customer.
  • Pay: In some instances customers can receive a refund, which can also be processed through the ModusLink solution.
  • Refurbish/Remarket: Once products are repaired, if not going directly back to the customer (in cases where a refund or new product was given instead), they can be refurbished and remarketed or re-sold as is.
  • Recycle: If the product cannot be fixed, then it will be broken down and sold to recyclers.
  • Report: Each return is registered and tracked within the online tool, giving a real-time look into what is being returned, when, why and what the ultimate customer resolution was.

Through a better understanding of the process, combined with information about why products are being returned, companies can improve the way a product works, change the way it is being marketed or sold, and even speed the discovery of a defective part that is affecting a high number of devices and causing returns. This insight helps to reduce the amounts of NFF (No Fault Found) returns – and ultimately enables companies to get a higher yield out of their returned products.

For more information on ModusLink’s Aftersales Management Solution, please visit http://www.moduslink.com/solutions/aftersales.

About ModusLink Global Solutions
ModusLink Corporation, a wholly owned subsidiary of ModusLink Global Solutions Inc. (NASDAQ: MLNK), is a global, omni-channel technology and fulfillment provider that gives clients real-time visibility into their end-to-end supply and demand chain operations, with expertise and facilities worldwide to manage forward and reverse logistics. The company’s operations are supported by more than 25 sites across North America, Europe and the Asia/Pacific region. For more information, please visit www.moduslink.com and www.valueunchained.com, the blog for supply chain professionals.

This release contains forward-looking statements regarding the benefits of ModusLink’s aftersales management solutions. All statements other than statements of historical fact are forward-looking statements. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: ModusLink's success depends on its ability to execute on its business strategy and the continued and increased demand for and market acceptance of its solutions and services; there is increased competition and technological changes in the markets in which ModusLink competes; and there are certain inherent risks associated with providing services internationally. For a detailed discussion of cautionary statements that may affect ModusLink's future results of operations and financial results, please refer to its filings with the Securities and Exchange Commission, including its most recent Quarterly Report on Form 10-Q. Forward-looking statements represent management's current expectations and are inherently uncertain. ModusLink does not undertake any obligation to update forward-looking statements made by the company.

ModusLink and ModusLink Global Solutions are trademarks of ModusLink Corporation. All other company names and product names may be trademarks of their respective owners.

Source: ModusLink Corporation

For ModusLink
Jeff Drew, 617-986-5004
moduslink@famapr.com