How automotive aftermarket suppliers can achieve fewer car parts return – reduce process costs by 50% – and engage to reduce pollution from transports.

The automotive industry has been a major contributor to the global air pollution.
Logistics is an integral part of the automotive aftermarket industry and one of the key topics is “parts returns from the customers”, in their supply value chain. A large amount of logistics processes are maintained and operated for returns management.

While the aftermarket suppliers are trying to reduce warranty cases, returns have been a crucial concern for the companies. It is never a one-time return from one of the customers. The process is linear yet multi-nodal. And the contribution to air pollution is alarming from the returns through transportation.
Whether it’s the emission from passenger cars or large heavy-duty vehicles, everything harms the environment. Climate change has been an important topic in recent years. Much has been discussed. On the contrary, very few effective measures have been taken to control the situation.

While Car-sharing and mobility services are on the go; less has been materialized on the air pollution created by heavy-duty transport vehicles.

According to sources, only 5% of the total vehicles on the road are the heavy-duty vehicles. Yet, they are responsible for 25% of the global warming emissions that come from the transportation sector.

The number of logistics involved is much more than a one-time return.
A trader or distributor receives numerous parts from many of its garages and then send them back to the suppliers.
Similarly, a supplier gets many of the parts returned from numerous distributors or traders.

Below is an example

Aftermarket Supply Value Chain - Increased logistic cost and pollution from transports. Multi-nodal retirns processes for the car parts

Aftermarket Supply Value Chain – Increased logistic cost and pollution from transports. Multi-nodal retirns processes for the car parts

As automotive aftermarket experts, we support the automotive suppliers on fewer returns :

TecAlliance’s Warranty and Returns module provides an end-to-end solution to the independent automotive aftermarket industry that enables them to standardize processes in the warranty management value chain. It is a well-thought digital solution that helps the aftermarket stakeholders to reduce process costs, consolidate businesses under one platform.

One of the key features of the solution is to help the suppliers reduce physical returns and saves on time, cost and manual efforts.
As an integral part of the returns policies, manufactures often request their customers to return the damaged or non-fitted parts. The returned parts need to be examined by the manufacturers as a part of the routine check. As largely experienced, returned parts are often seldom scraped off as they have no further usage.

The whole returning scenario, engages process cost, logistic cost, and heavy particulate emission. This may sound insignificant but imagine – on an average 4% of the shipped parts are returned to the manufacturers every week.

Our solution helps a supplier to digitalize the returns processes, helping to decide on a faulty part in the real-time.

The solution enables a manufacturer to decide whether the part should be returned or not. In the latter case, the user can scrape off the part without engaging in any further logistic activities and costs.

  • The whole process saves on
  • Transportation and logistics costs
  • Time to prepare the returns
  • Time to return the faulty pieces
  • Enable a manufacturer to stop production of faulty pieces in certain cases
  • Particulate emission on-road and combats air pollution
  • Processing costs
  • Reduce the volume of work-load
  • Reduce manual efforts

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