October 4, 2020
Case Study – Inventory Optimisation & Refurbishment
This customer is a world-leading premium alcoholic drinks provider. They operate in over 180 countries around the world and are…
We have specialist knowledge and expertise in developing and delivering refurbishment solutions to prolong the life of your most valuable assets and minimise spend on new. By refurbishing failed or end of life items, you can gain significant financial, quality and environmental benefits.
With over 20 years of experience in refurbishment solutions, TVS SCS has established core processes to the highest quality industry standards in line with the ISO9001 accreditation quality system to ensure full and continued satisfaction for all our customers.
The value that TVS SCS delivers through this capability is the considerable cost savings that are associated with refurbishing your assets over buying them new, typically between 70 – 80% versus the cost of buying new.
All parts used in the refurbishment process are from the original equipment manufacturer where specified and ensure the most cost-effective option for customers. We offer a 12-month warranty on all refurbished items to give you peace-of-mind that your assets have been refurbished to the best possible condition.
With an extensive and varied range of in-house skills, our in-house experts will decide on whether the item needs to be repaired, refurbished, stripped, or in some circumstances, altogether scrapped.
There are environmental benefits to refurbishing products, but where equipment does need to be scrapped, we can decommission safely and cost-effectively in line with regulations. We work to the Waste Electrical and Electronic Equipment Compliance Scheme, which contributes to increasing green credentials.
TVS SCS also provide a fully managed returns process utilised in other industry sectors and most notably in the Utility sector for Smart Metering. TVS SCS fully manage the returns process of legacy and defective items which are then returned to the Original Equipment Manufacturer. Traceability of assets is a crucial industry requirement, providing our clients with full visibility of their assets.
The Meter Asset Provider has the option to collect the meters or instruct for them to be recycled in line with Meter Asset Managers Code of Practice (MAMCoP) compliance.
Whilst delivering In-Boot or Pick Up and Drop Off (PUDO) delivery solutions for our client’s engineers, we also collect their product returns for re-processing. This fully closed-loop process collects off circuit meters and also new and unused products which are then returned to the TVS SCS Returns Processing Centre for sortation. The new and unused surplus stock is then checked and sorted ready to be reassigned for the next available use. We use the last-in, first-out method to ensure products are reprocessed quickly and efficiently.
TVS SCS have trialled multiple new technologies to help create more value for our clients. This includes a serial bar code scanner that scans an asset at every section of the refurbishment process. This allows our clients to gain full visibility of where their assets are in the refurbishment process so they can plan what they want to do with the asset once it’s ready for service again.
Once an item has been scanned, it also creates a detail sheet with all the parts of that specific asset that has been refurbished. This helps keep track of the assets life and all the work that has been performed on it.
TVS SCS have trialled multiple new technologies to help create more value for our clients. This includes a serial bar code scanner that scans an asset at every section of the refurbishment process. This allows our clients to gain full visibility of where their assets are in the refurbishment process so they can plan what they want to do with the asset once it’s ready for service again. Once an item has been scanned, it also creates a detail sheet with all the parts of that specific asset that has been refurbished. This helps keep track of the assets life and all the work that has been performed on it.
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Refurbishing your assets is far more cost-effective than buying new, as you only pay for the parts that need replacing as opposed to buying an entirely new piece of equipment. Often when equipment comes to the end of its life, the structural condition is excellent, but the parts that help create the function are the worn areas. These parts can usually be replaced with Original Equipment Manufacturer (OEM) parts which extend the life of the asset.
This extension of your asset means you are utilising its capability to the maximum possible potential. Assets like this can often be refurbished multiple times throughout their life if serviced correctly, which maximises the value of money invested in your assets.
TVS SCS provides a sortation and triage service in respect of our customers.
This service includes receiving in returned units, logging of serialised items and segregation into appropriate streams to either return to the asset owner or disposal as required. Logging of serial numbers is automated which ensures inventory accuracy and enables through life asset tracking.
To ensure a closed-loop process TVS SCS collect all assets that need to be returned at the same time they drop off new deliveries. When an engineer’s van is being replenished with new stock “the returns” are collected and returned back to the TVS SCS Returns Processing Centre.
As refurbishment isn’t an entirely new product, the cost-saving comes from the cost of refurbishment against the cost of buying a new asset. Whilst there is a cost associated for the deconstructing, repair and rebuild process, it is significantly less than that of scrapping the asset and buying a completely new one. Once something has been refurbished and serviced correctly, it essentially becomes a new asset with the same life expectancy – a saving of 70 – 80%
We offer a wide range of repair and refurbishment services. This can range from an asset service whereby we clean the asset replace any worn parts, rebuild and test to ensure the operational integrity of the asset and compliant with health and safety and industry standards.
A more comprehensive service offering can include a complete strip-down of an asset, new parts ordered and replaced with a complete rebuild and test to ensure the operational integrity of the asset to ensure it is compliant with health and safety and industry standards.
Once returns have been processed into our returns centre we provide a sift and sort service to organise the relevant asset as to whether they return to its OEM or are to be disposed of in line with industry requirements.
If assets are consumables and are fit to go back out into operation then they will be stocked and counted ready to go back into operations on a last in first out basis. TVS SCS provides this service to many Smart Metering clients.
We give our clients peace- of -mind with our refurbishment service as we offer a twelve-month warranty on all of our refurbished assets which adds value to our service and give you the confidence that your asset has been refurbished to the highest standard.
Our refurbishment process starts at our facility where it is given a tracking form which breaks down the refurbishment process and provides the client with visibility of where their asset is up to in the refurbishment process. It also gives us traceability at each stage of the refurbishment process as to what’s been tried, tested and replaced.
The time to refurbish an asset can vary depending on the size and complexity of the asset in question. For something small and straight forward, it can take a couple of hours, but for a more significant, more complex asset it entirely depends on how many areas of that asset need to be assessed. Our experts can review your requirement and give you a realistic timeframe based on many variables.
Typically we see an asset life extension of anywhere between 2-3 years before the asset needs refurbishment again. However, this is dependent on several variables like how often the asset is used, what it’s used for and how durable the OEM parts are for that specific asset.
It’s far more sustainable to replace parts on an asset compared to buying a completely new asset. On your existing asset, the core integrity may still be sound, but the components that allow that function may be worn or damaged. This often generates a thought process that the equipment should be disposed of, creating unnecessary waste from what is potentially a perfectly functional unit that could still be made operational to a standard as good as new.
When buying a new asset, you on-board the carbon footprint cost to manufacture and transport. However, when considering refurbishment, you only on-board the carbon footprint of the parts that are required to get the asset functioning again, which is substantially lower than the manufacture of an entirely new asset. Refurbishing a part at a site in the country of use will often vastly reduce the number of shipping miles attributed to a new part. When considering where your part was manufactured originally and how far it and its subcomponents have travelled around the continent, or potentially the globe before you’ve even ordered it.
All disposable or waste items are disposed of correctly in line with industry standards and regulations. In smart metering, we are MAMCoP complaint which ensures all old meters are disposed of in the correct manner. We also work to WEEE Compliance which further proves our commitment to proper disposable and integrity of the environment.