MDSi is a recognized best practice leader in the Reverse Logistics market; with programs and services that typically return at least a 30-50% improvement to our customers’ investment recovery initiatives. Reverse Logistics is the process of planning, implementing, and controlling the efficient and cost effective flow of inactive materials. Through innovative thinking, combined with a desire to find capital and expense savings, MDSi has put considerable focus on the development and effective delivery of reverse logistics and excess management disciplines.
MDSi has created several applications to facilitate these practices. One application coined Excess Marketplace integrates into our customer’s ERP system to allow users to easily search for parts and prioritize available items in an area via highest average net book value. This provides a centralized visibility of all available assets available within an organization. With this visibility, our software becomes provides a built-in automation feature which allows for intercompany transfers of capital, complete with connections to shipping providers.
Best practices dictate that all parts should fall into one of the following dimensions: Recover, Repair, Redeploy, Resell, or Recycle. The order of listing above is important, because it represents a natural hierarchy for maximizing capital recovery. Any part flowing through MDSI has one of these categories logically assigned. The dimension dictates the parts next intended use and allows for speed in flow to that end.
The dimension is also searchable allowing anyone visibility within any particular dimension at a vendor or internal location. Dimension reviews happen monthly with statistical information allowing the customer to decide if a change is warranted. Dimension change factors can include items such as a shift in usage history or the return on a particular parts scrap verses resale value. The goal is to quantify each part decision globally allowing for quickness in flow at a micro level.
Would it surprise you that we have found that 30% of equipment purchases are wasteful spends because a customer already owns the asset within their organization? What would it mean for you company to, at the very least, cut that number in half?