Top Performing Service Firms Drive Value Through the Reverse Supply Chain

BOSTON, MA--(Marketwire - March 18, 2010) -  The latest research report published by the Aberdeen Group, a Harte-Hanks Company (NYSE: HHS) entitled Reverse Logistics: Driving Improved Returns Directly to the Bottom Line found that leading companies are actively leveraging technology tools and partner networks to streamline their return, repair, refurbishment, disposal / recycling, and remarketing processes -- primarily to drive improved returns. Compared to forward logistics, service organizations have historically not spent as much effort (or dollars) in the planning and development of processes for managing the return and repair of damaged parts or products. However, the results of the February 2010 study of more than 160 manufacturers and service providers reveal that this is no longer the case, as 87% of companies indicate that the effective management of the reverse service supply chain was either "extremely" or "very important" to their organization's operational and financial performance -- up from 74% in 2008, and 61% in 2007.

"As competitive and economic pressures continue to have a significant impact on the service segment, an increasing number of companies have begun to view the reverse logistics chain as a process that may be used to manage costs and drive additional revenues through the management and tracking of the return, repair, refurbishment and remarketing of assets," said Bill Pollock, Vice President, Principal Analyst, Aberdeen Group. "In addition, many firms are also taking a greater interest in the disposition of spent assets and the ways in which costs can be further contained and additional revenue can be driven out of existing reverse logistics operations."

Research findings in the Reverse Logistics report indicate that high performing companies are twice as likely as all other companies to align company sales, marketing, and pricing teams for the effective retailing of refurbished products. As such, these organizations exhibited the following:

• 93% customer satisfaction rate
• 4.42 average days part return time
• 21% decrease in cost per Return Material Authorization (RMA) over the past 12 months 

The report also finds that top performing service organizations are 51% more likely than all other companies to have standardized procedures for service parts, refurbishment, disposition, and resale across the organization. In addition, leading firms are more likely than all other companies to have senior executive oversight / management of reverse logistics Profit-and-Loss (P&L).

A complimentary copy of this report is made available due in part by the following underwriters: Flash Global Logistics and OnProcess Technology. To obtain a complimentary copy of the report, visit: http://www.aberdeen.com/link/sponsor.asp?spid=30410182&cid=6323&camp2.

Visit Research.Aberdeen.com for additional access to complimentary Service Management Research.

About Aberdeen Group, a Harte-Hanks Company
Aberdeen provides fact-based research and market intelligence that delivers demonstrable results. Having queried more than 30,000 companies in the past two years, Aberdeen is positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen for insights that drive decisions.

As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information - Opportunity - Insight - Engagement - Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen or call (617) 854-5200, or to learn more about Harte-Hanks, call (800) 456-9748.

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