RLA Wireless Committee Project Report: Reverse Logistics IT Infrastructure Issues (Dec-2010 : D.Zody, B. Vaught, J. Villareal)

2 1/ IN AN IDEAL WORLD…  RL-3PSP IT Infrastructure  MOs can control swap inventory float & +/- exposure  MOs can identify/bill customer accounts if an RMA unit isn’t received in exchange for an advance replacement  MOs can see real-time status of material across the E2E (cross-vendor) process via a (daily) dashboard  3PSPs are given auto-alerts when SLAs for throughput, delivery schedule, or quality are in jeopardy.  Due to XML’s simplicity and Internet usability most RL/RMA data is provided via XML-based APIs. RLA Wireless Committee /

3 2/ PERSISTENT CHALLENGES…  RL-3PSP IT Infrastructure  Getting dissimilar partner legacy systems e.g. ERP, CRM to talk (Oracle vs. SAP vs. Bann vs. proprietary…)  Lack of any RL EDI standard & the effort to create new EDI APIs  This tends to lock MOs into legacy relationships; carriers want 3PSPs “to do things their way”  Hosting of the IT infrastructure (esp. for Tier-2/3 3PPs)  Handset swap-stock inventory status…  lose visibility between partners of serialized inventory once it moves into a ‘virtual’ (3 rd -party) location.  Don’t know partner’s real-time disposition/delivery status e.g. for repairs, lot rejects, shipments RLA Wireless Committee /

4 3/ PERSISTENT CHALLENGES…  RL-3PSP IT Infrastructure  Reconciling MO exchange & repair coding, e.g.: ATT ~20 return codes, Verizon ~70, T-Mobile ~15…  Getting CSRs to choose accurate return reasons… RLA Wireless Committee /

5 4/ BEST PRACTICES (?)  RL-3PSP IT Infrastructure 3PLP (or MO) creates a virtual inventory location  this is a challenge — esp. if not compatible with legacy systems Correlate repair codes to return reasons to drive CPIs…  typically < 60% correlation, but some findings are useful Establish RL industry standard codes for returns, repairs  Possible to develop a credible ROI for carrier adoption?  Could EU’s ‘IRIS’ codes be ‘sold’ to US Carriers & 3PSPs? (ref. Is there any RFID-tag role for unit traceability?  Wal-Mart’s RFID initiative failed due to “TMI” (at pallet level) RLA Wireless Committee /

6 5/ NEXT STEPS?  RL-3PSP IT Infrastructure RLA/W team discussion & suggestions… 1.Could we determine if ANY carrier-3PSP has systems which are close to ‘ideal’? 2.___________________ 3.___________________ 4.___________________ RLA Wireless Committee /