In an industry where time-sensitive deliveries and safe handling of valuable components are paramount, effective…
February 14, 2024
Simplify your renewable energy reverse logistics
In the next few years , the global renewable energy market is expected to grow, so the efficiency of supply chains within this sector will remain critical.
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The energy sector has long been a pioneer when it comes to innovation, so it came as no surprise when it was one of the first sectors to integrate digital processes throughout its supply chain – which, of course, included logistics.
For renewable energy companies, giving their field engineers every opportunity to complete their work on time, every time is critical – this means having all the parts, machinery and equipment they need at their disposal, fast. Embracing the paradigm shift of digitisation has the potential to save renewable energy companies both time and money, whilst helping to improve the efficiency of their reverse logistics.
Reverse logistics (sometimes also called reverse distribution or returns management) is the act of returning a part for repair, replacement, or disposal. And this is where our Gateway Returns App plays a crucial role. Via the app, Carousel’s customers can return parts to pre-determined locations of their choice. And through our Carousel’s Client Portal, customers can track and manage stock returns. So, when you need a part, a machine or a piece of equipment supplied, replaced or repaired, you can have it – fast.
A digitised supply chain for reverse distribution has a multitude of benefits. These include, but are not limited to:
- Transparency – Association for Supply Chain Management (ASCM), a non-profit organisation for supply chain management, said in a 2021 study that over half of companies lack a clear picture of their own supply chain. Since then, digitisation has increased. After all, with digitisation, companies can have a more transparent view of their supply chain than ever before, which includes reverse distribution.
- Resilience – An increase in transparency will lead to an increase in resilience in the supply chain. Digitisation allows for live updates to disruptions, so you can proactively tackle issues before they escalate.
- Productivity – Digitising your reverse supply chain frees up staff and time to focus on other tasks. In fact, some companies have reported a 40% increase in productivity due to the introduction of a digital supply chain.
- Trust in your brand – Nothing is worse than trying to return a product and being met by operational roadblocks, weighing up whether the effort is worth returning versus if you should just accept a sub-par product. Long term, customers will lack confidence in using your service, concerned they may be stuck with a defunct or unsuitable end result. Using an app such as Gateway simplifies this for them and turns every collection into an easy task, put in motion in minutes.
- Tracking – Live tracking has become the expectation rather than an exception in today’s market. Booking a collection via Gateway, then being able to live track the collection, gives customers peace of mind and empowers you and them to make informed decisions.
- Environmental impact and efficiency – according to the European Commission, in 2020, around one-fifth of the total road freight transport performance (in vehicle-kilometres) in the EU was carried out by empty vehicles – and this presents an opportunity. With a digital supply chain and pre-arranged collections for reverse distribution, you can optimise your pick-ups. By using our app, field engineers can search for the nearest preset location to them and collect the needed part right away, minimising travel time between repairs. Faster and regional distribution reduces time on the road, which is better for the environment, your timings, and your bottom line.
Often, companies experience growing pains when they attempt to digitise, but as renewable energy companies know only too well, it’s worth it.
For the renewable energy sector, efficiency is king – fieldwork, be that installation work or repairs, needs to happen in a fast, efficient manner, every single time, with as little downtime as possible. Which means having the necessary parts, machinery and resources available quickly, no matter where your field engineers happen to be.
Get started today and let us do the leg work – our expertise is at your disposal.