January 13, 2011

Arrow Electronics launches reverse logistics service

ReSolve service will help tech manufacturers determine which returns can be salvaged and which should be scrapped.

By Susan K. Lacefield

Electronic components and computer products distributor Arrow Electronics has launched a reverse logistics service for the electronics industry under the brand name ReSolve.

The new offering is a result of Arrow's acquisition last May of reverse logistics provider Converge. Converge was launched as an electronics component distribution provider but later expanded into reverse logistics and service parts management.

According to a Jan. 11 announcement, the electronic components distribution service will continue to be offered under the Converge brand, while ReSolve will provide service parts management and product returns management services for contract manufacturers and original equipment manufacturers (OEMs).

ReSolve's service parts management offering will help clients like repair companies and forward fulfillment hubs manage their spare parts inventories, Arrow said. ReSolve's customers no longer have to hold large inventories of spare parts in anticipation of a potential repair request, Arrow said. Instead ReSolve provides parts only when needed.

ReSolve's product returns management service helps technology manufacturers with the process of deciding what should be done with a returned product, Arrow said. "The majority of organizations treat returned material as scrap. It's sent to recyclers, losing money on the product in the process," says Omur Bagci, director of solutions development for ReSolve. "But in many cases, the returned product is completely functional."

To prevent that from happening, ReSolve screens and tests a product to determine its condition. If the product has defects, the testing process will determine whether it can be fixed. If the item is deemed unsalvageable, the service will determine the best disposal method.

Versions of these services had been offered previously through Converge. Under the ReSolve brand, they now cover more commodities and support services, and are being offered globally through Arrow's existing 53-nation network.

In addition, Arrow is combining Converge and ReSolve with Intechra—an IT asset disposition service provider it bought last year—to form a new full-service reverse supply chain business segment. Before acquiring Converge and Intechra, Arrow was predominantly focused on the forward supply chain.

"We are the first of the electronic distribution companies to enter into the reverse logistics space," said Mark Majeske, vice president of global supply chain services at Arrow. "We've always been on the forward side of logistics and distribution. [To jump] off into the reverse logistics space is very unique for us."

About the Author

Susan K. Lacefield
Senior Editor
Susan Lacefield has been working for supply chain publications since 1999. Before joining DC VELOCITY, she was an associate editor for Supply Chain Management Review and wrote for Logistics Management magazine. She holds a master's degree in English.

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