Case Study: QuadTech ROI results in first year with FrontLines
Returns
Client Requirements:
QuadTech, Inc (www.quadtech.com),
an ISO 9001-Registered company, is a solutions provider enabling
Medical Device Manufacturers and other manufacturing industries
to test the safety and quality of their electrical products while
ensuring compliance to FDA and other regulatory agencies. The
company offers a complete line of instrumentation and solutions
including LCR Meters, Hi-pot and Ground Bond Testers, Safety Analyzers,
Megohmmeters, Milliohmmeters, systems and software, as well as,
calibration and repair services. Based in Maynard, MA, QuadTech,
Inc has a worldwide network of direct sales and distributors who
service and support customers around the globe.
Prior to the introduction of FrontLines Returns, QuadTech had
a well defined RMA process which was meeting their turnaround
time objectives, however, in a very competitive marketplace they
realized to remain successful their processes needed to be LESS
resource intensive while still maintaining satisfactory customer
service levels. They reviewed the efficiencies FrontLines could
deliver to them to meet their competitive needs and liked the
low risk, low cost solution pricing model available from FrontLines.
One of the key benefits they felt with FrontLines was its ability
to be both easily configured and implemented by the operations
team with a little or no IT resource requirement, which meant
implementation, was quite rapid with lower follow on costs.
With regards to RMA management, the areas which they were looking
to enhance were:
1) Reduction in both documentation time required for RMA management
& manual handling touch points,
2) Elimination of the use of paper based forms,
3) Provision of an online interface for customers to enter their
RMAs through the website 24/7, with an emphasis on simplifying
both the process of receiving an RMA and data entry requirements
to complete a repair or recalibration,
4) Communications improvement throughout the lifecycle of the
return,
5) Reduction of the number of RMA related client calls and emails,
6) Centralization of data with the availability of real time tracking,
analysis and reporting,
7) Provision of the ability to manage multiple return processes
and return locations,
8) Improvement in both the overall client experience & satisfaction
with the handling of their returns.
The Before Picture:
QuadTech had between 8 and 12 forms which they used to handle
each RMA with at least 1 multiple copy form being produced by
an outside printing company. The cost of the paper and materials
alone amounted to $4.50 per RMA and there was a significant amount
of time being spent by various departments on documenting the
RMAs as they went through the entire repair and / or calibration
return cycle. Even though the RMA turnaround process was maintaining
both a 3 day calibration and 5 day repair cycle, the process was
resource intensive and had a large number of manual handling touch
points.
They felt there would be greater cost benefits available to QuadTech
if they provided their clients with an online interface into which
they could enter their RMAs. A system which would further automate
many of the RMA touch points and add resource-freeing efficiencies
into the system. The internal control of the RMAs, they felt,
was quite good, but was neither cost effective, nor communicative,
especially, with regards to keeping internal stakeholders of the
RMA informed with timely reports and communications.
Their RMA system lacked flexibility. Reporting and analysis of
the RMA process was quite difficult, taking days to compile and
analyze return data.
Initially, there was significant Executive resistance to enhancing
an already established RMA process which was successfully maintaining
their required turnaround times, however, it was decided that
to remain competitive something was needed to reduce the resource
intensiveness of their current RMA handling. The low cost, low
risk approach which FrontLines provides met their fiscal needs
and since there would be minimal to no impact on their overloaded
IT resources they decided to move forward with a FrontLines Returns
implementation.
The After Picture with FrontLines Returns:
Internally, QuadTech was able to implement the FrontLines RMA
system without the requirement of any IT resources (except for
the provision of 1 online survey link). Input & direction
for setting up the FrontLines solution came from those who dealt
with RMAs daily or had accountability for the system, as well
as, key customers. The system has been in place for over a year
and below represents the variety of cost, time, revenue, and customer
satisfaction benefits which have been achieved since the implementation
of FrontLines Returns:
1) 35 hours per month - reduction in documentation handling time
and the elimination of 6 manual touch points in the RMA process,
2) 100% Exceptional Service rating on customer surveys (Note:
A link to the survey is being automatically sent after the completion
of each and every RMA as part of the workflow configured through
FrontLines),
3) $4,500 saved in paper costs per 1000 RMAs processed ($4.50
per RMA),
4) New revenue stream developed for advanced data services requests
including; certification, acknowledgement, & before/after
data documentation (requests for these services are automated
through workflow),
5) Approximately 40% reduction in RMA related phone activity,
6) Centralized data has enabled more timely reporting capability
including automated reports to RMA stakeholders as part of the
configured workflow,
7) 100% of staff utilizing FrontLines, especially lab technicians,
are highly satisfied with the system,
8) Ability to easily control & oversee outsourced RMA services,
to further reduce costs per RMA & enable the QuadTech RMA
service team to focus their support for their newly expanded product
lines.
Any 1 of the 8 benefits listed above more than compensated QuadTech
for the cost of implementing the FrontLines Returns solution.
Their ROI was achieved in weeks not years. Since implementation,
QuadTech's RMA support costs have been very dramatically trimmed
while, MOST SIGNIFICANTLY, customer service ratings have greatly
improved leaving QuadTech well positioned to weather these fiscally
challenging times.
Summary:
It is important to note that QuadTech, prior to FrontLines, had
a well defined return handling process and was meeting its product
return turnaround goals. Customers were satisfied with the RMA
services provided, though not exceptionally so. It took a significant
leap of faith on their part to go with FrontLines and with the
ROI they have achieved in their first year of utilizing FrontLines
Returns (as noted above), it can be seen their faith was well
rewarded.
In these leaner economic times, especially since the last quarter
of 2008, all of the following; the lowering of support costs,
the increasing of revenue from pre-existing clients, the decreasing
of client attrition, and the delivery of superior customer service
are all part of the game plan which organizations will need to
follow to ensure their future viability. In an examination of
QuadTech's case
study, and the case studies
of other companies successfully utilizing FrontLines solutions,
it can be seen how, at high opportunity moments, such as those
that occur during customer support and return interactions, a
successful Support/RMA game plan can be easily configured to meet
and / or exceed the fiscal goals of both manufacturing & distributing
organizations.
If your organization is looking to create efficiencies within
its existing return management system and, as well, ensure better
client relationships, feel free to give FrontLines a look, and
we will be more than happy to provide an online demonstration.
For more information about this
case study and other case studies or to arrange a time
for an online demonstration please email Mark Taylor, Director
of Business Development at mark@frontlines247.com.
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