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Long story short, I need to determine the cost (to us and the customer) of a customer return so that I can demonstrate a cost savings for the reduction of customer returns. Presently, we don’t have a dollar value associated with it, we just go by the “they’re bad so we need to reduce them” method.
I’ve started brainstorming what I need to find a dollar value for. Here’s what I’ve come up with so far:
Cost of Scrapped Unit (components and labor)
Cost of Shipping (shipping unit to customer, expedited shipping of returned unit, expedited shipping of sorted units to customer)
Cost of Internal Sorting
Cost of Sorting at Customer’s Location (to include payroll, travel, lodging, and meals of our employees sent on site)
Cost of Investigation (what customer charges us to determine it was our fault)
Cost of Teardown/Analysis at our site
Cost of Meetings, etc… to discuss issue
Cost of Warranty Repair if bad part makes it into a vehicle
And of course, the trickiest one, the “cost” of ticking off the customer and resulting loss of business, etc…
Can some of you experts tell me if I’m missing anything?
I’ve started brainstorming what I need to find a dollar value for. Here’s what I’ve come up with so far:
Cost of Scrapped Unit (components and labor)
Cost of Shipping (shipping unit to customer, expedited shipping of returned unit, expedited shipping of sorted units to customer)
Cost of Internal Sorting
Cost of Sorting at Customer’s Location (to include payroll, travel, lodging, and meals of our employees sent on site)
Cost of Investigation (what customer charges us to determine it was our fault)
Cost of Teardown/Analysis at our site
Cost of Meetings, etc… to discuss issue
Cost of Warranty Repair if bad part makes it into a vehicle
And of course, the trickiest one, the “cost” of ticking off the customer and resulting loss of business, etc…
Can some of you experts tell me if I’m missing anything?