RLG brings Electronics Refurbishment and Remarketing Business into Focus
Following the trend of increasing shipment volumes and hence rise of returned goods, the Reverse Logistics Group’s division for After Market Services lately extended their existing value chain for returns management solutions. By acquisition, two companies have been added which are specialized in refurbishment and remarketing of electronic and electric appliances: the British-Romanian Britcom as well as the Czech based Kvenna. They both operate now as newly formed organization ‘Cycleon-Recare’. It completes the service portfolio of its affiliate company Cycleon including logistics, sorting and grading processes.
Thorsten Runge, Vice President for Cycleon-Recare, is confident that integrating refurbishment and remarketing services will substantially accelerate the whole Returns Management business: “Returns had been long considered a pure loss-maker and a difficult process for customers to manage. We offer great experience and efficient processes for refurbishment, combined with great competence for remarketing of refurbished goods. Thus, we are able to achieve a positive financial result of returns while securing full compliance for electronic products allocated to recycling.”
Key to successful refurbishment and remarketing is an efficient pre-sorting and grading process. Hence, Cycleon-Recare makes use of 20 consolidation centers throughout Europe to pre-determine whether the product is deemed suitable for resale or recycle. For Small Domestic Appliances, for example, refurbishment and resale is already reasonable for products valued starting around 50€.
Admitted products are sent to one of three treatment facilities located in Birmingham, Bucharest and Pilsen. Additional to standard services like repair, cleaning and re-packaging clients may add data wiping, product auditing and testing services to the process.
Up to 85% of goods can be resold – labeled as refurbished goods of different quality levels as e.g. ‘A’, ‘B’ and ‘C’. The remarketing is conducted by Cycleon-Recare’s selling team in line with client requirements to secure brand protection. The company therefore operates an own remarketing platform but also uses other approved sales channels.