YANTRA STUDY POINTS TO THE POTENTIAL IMPROVEMENTS:

We now return to the Yantra/CellStar case study presented earlier, to emphasize
how these firms found real improvement through advanced supply chain management
network-type efforts. One of the most important factors in the effort
to improve the delivery system for the intended wireless customers was the
ability to handle reverse logistics. CellStar had determined that this factor was
the Achilles� heel in the wireless industry. Traditional reverse solutions, for
example, could not address the need to:
Maximize value of the returned handsets
Track handsets across the enterprise, including the repair process
Evaluate individual handset attributes (software, warranty, etc.)
Reconcile issues with multiple vendors and distributors
Manage multiple repair vendors
Assess product disposition at the unit level
Before developing its Omnigistics solution with Yantra, CellStar had little
chance of providing answers to these problems. Its returns management system
had no process-wide status. Reporting lacked a common format and was not
capable of handling details at a unit level. There was no ability to track unit
status (disposition decisions were made at the pallet level) and no mechanism
to track or manage warranty claims. In short, it was operating with a slow,
costly, and inflexible return-handling system.
With the help of its business ally, CellStar introduced Omnigistics and
brought a new and better dimension to reverse logistics services. In addition to
the software development cost, a multimillion-dollar investment was made in
business process reengineering the existing processes. With the help of Yantra
as the provider of the new and complex supply chain management system and
CSC as the systems integrator, CellStar also established a 230,000-square-feet
dedicated facility with specially trained forward and reverse logistics teams.
This facility became a certified repair center, with a dedicated account management
team.
Facing the issue of reverse logistics, the team adopted level 5 principles and
developed a new strategy and solution based on:
Collaboration � To integrate the customer�s business system, key
business partners, and CellStar�s logistics operations in order to provide
help from a seamless entity
Visibility � To provide electronic access into the processing at both
the enterprise and unit level
Speed � To compress event cycles
The solution delivered a single, seamless management system that streamlined
operations across the end-to-end reverse logistics process. Now the reverse
management system was centralized and could process at the unit level. Reporting
was on demand at the enterprise and unit level. Inventory management
decreased the amount of nonearning assets and maximized the high turnover
stock, while reducing or eliminating the slowest moving items. Asset reclamation
options were included in that part of the system. Multiple repair centers
were linked so they could monitor status at the unit level. Finally, multiple
warranty programs were in place to manage and track claims.
To illustrate the advantages, a major national retailer became an early customer
of the enhanced system. This retailer�s handsets were returned at the store
level and replaced with new units from store inventory. The returned handsets
were sent to the retailer�s centralized return center and then to a carrier for
disposition. The issues were symptomatic of the industry at the time. The
process was marked by escalating costs and loss of profitability. The value of
the returned handsets to the carrier was not known, and returns were difficult
and costly to handle at the store level.