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Case Study

Reduce eWaste and Shrinkage With Refurbishment

A multi-state system integrator cut new-part usage, increased returns compliance, and recovered value from used service parts through a controlled reverse logistics and refurbishment program.

Green Wave Electronics cataloged every returned unit, matched it to field scans, refurbished the majority for redeployment, and routed in-warranty failures back to manufacturers for credits or replacements, reducing eWaste and financial risk.

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Test, Repair, Refurbishment and Redeployment of Used Service Parts

Turning a Liability Into an Asset With Six Distinct Wins

The customer faced rising costs of electronics, inventory shrinkage, scrapping fees, and weak vendor RMA recovery in field service. A structured program centered on traceability, refurbishment, warranty recovery, and compliant recycling materially improved profitability.

Lower new-part usage in the field

Recover value through refurbishment and warranty credits

Improve compliance and reduce disposal risk

Executive Summary

A multi-state system integrator struggled with escalating electronics costs, inventory shrinkage, scrapping fees, and poor vendor RMA credit rates in field service. Green Wave Electronics implemented a traceable reverse logistics, test, repair, refurbishment, and redeployment program that delivered six distinct financial and risk-reduction wins, improving profitability while reducing eWaste.

Use refurbished vs. new parts

Increase deployment of refurbished parts on service jobs to reduce spend on new equipment while keeping service quality high.

Improve credits on in-warranty failures

Identify in-warranty functional failures and route them back to manufacturers for credits or replacement units.

Reduce eWaste costs and risk

Lower scrapping volumes, minimize disposal fees, and mitigate EPA and reputational risk through controlled returns and compliant recycling.

Loss prevention from technicians

Increase traceability of what was removed and what was installed, helping reduce shrinkage and uncontrolled inventory movement.

Avoidance of EPA fines

Ensure returned parts are captured, processed, and dispositioned properly to avoid improper disposal and regulatory exposure.

Reputational risk mitigation

Eliminate the risk of parts ending up in dumpsters, trash bins, or other improper channels that can trigger negative publicity.

Challenges

Field service operations were consuming a significant portion of total revenue. The biggest cost driver was the frequent use of expensive new equipment on service calls. The customer also suspected potential shrinkage, with some technicians possibly removing new product from trucks and reselling it online. At the same time, the customer lacked confidence that failed product was being recycled properly, and when recycling occurred, eWaste fees were too high.

solution

The Green Wave Electronics Solution

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1

Field Traceability Through Serial Scanning

Green Wave Electronics worked with the customer to deploy a tablet-based app for field service technicians. Technicians scanned serial numbers for removed equipment and the replacement units installed, while any upsell equipment was recorded electronically, providing continuous traceability for what was deployed in the field.

2

Controlled Returns Flow and Weekly Shipments

Old equipment was labeled, stored on the technician’s truck, and shipped weekly to Green Wave Electronics. App data was transmitted to both the customer and Green Wave Electronics, creating a closed-loop process for field returns.

3

Catalog Match and Weekly Compliance Reporting

Returned parts were cataloged into the Green Wave Electronics system and matched against what was recorded in the field app. A weekly compliance report flagged parts recorded by technicians but not received, improving accountability and loss prevention.

Results

After launching in 2018, the customer saw an initial spike in compliance violations as technicians adapted to the new scanning process. From the quarter prior to the transition to the first full quarter after transition, the customer reported just under a 10% reduction in total new part usage.

Tracking immediately increased the volume of used material returned from the field. Technicians were motivated to return everything, reducing the risk of improper disposal in trash bins or dumpsters and dramatically reducing exposure to costly EPA fines and associated negative publicity.

More than 75% of used parts received were successfully tested, repaired, refurbished, and redeployed for future service jobs. Of the remaining parts, almost half were in-warranty functional failures returned to manufacturers for credits or replacements, leaving only a small percentage to be eWasted at minimal cost.

Overall savings came from six areas: increased use of refurbished product vs. new, improved warranty credits and replacements, eWaste savings, loss prevention, avoidance of EPA fines, and reputational risk mitigation. Program costs were limited to Green Wave Electronics transaction fees and shipping expenses.

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