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Earlier this month, I attended the Reverse Logistics Association (RLA) conference in Amsterdam. The event was well attended by many thought leaders in the reverse logistics/aftermarket sector.
Reverse logistics for the mobile phone industry was a key topic discussed during the event. In particular, the increase in popularity of smart phones has given OEMs major cause for concern. Key components in smart phones, such as the touch screen, can cost in excess of $100. The market is also becoming more competitive and margins are getting thinner. Higher-priced components in these devices equate to higher repair costs. And thinner margins mean that aftermarket service costs have a stronger impact on the bottom line.
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