Industry: Telecom
Initiative: TIBB
Context: Maximizing Asset Value in Telecom
A major telecom provider sought to address the escalating costs associated with customer device returns and the unrealized value locked within used handsets. The primary objective was two-fold: to assess cost-saving opportunities across the entire return lifecycle and to design and implement a comprehensive used handset program to recapture maximum asset value. This initiative was critical to improving the provider’s financial performance and sustainability metrics.
The Challenge: Orchestrating Complexity Across Silos
Successfully launching a profitable used-device program required bridging traditionally siloed functions (Operations, Logistics, Finance, Sales) and managing significant complexity:
- Defining the Value Stream: The initial challenge was analyzing disparate data on current return methods, segmenting returns by volume and value tiers, and accurately projecting the recoverable value of different device segments.
- Multichannel Operational Integration: The implementation phase required seamlessly integrating several new operational components:
- Logistics & Insurance: Establishing secure, high-integrity processes for device collection and transit.
- Financial Products: Orchestrating the launch of a new, financed program (like installment plans) specifically for high-value used devices.
- Revenue Generation Channels: Simultaneously deploying new B2C distribution channels, including e-commerce sales, to ensure maximum market reach for the refurbished inventory.
The Solution: Phased Analysis to Seamless Operational Launch
The project was executed in two distinct, interconnected phases, focusing first on deep analysis and then on precise operational deployment.
Phase 1: Diagnostic and Program Design
This initial phase focused on building the financial and operational blueprint for the new program:
- Return Method Evaluation: We conducted a detailed assessment of existing return channels (in-store, mail-in, direct swap) to identify leakage points, efficiency gaps, and opportunities for condition grading at the point of return.
- Value Tier and Segment Analysis: Devices were segmented based on condition, age, and market value. This established tiered thresholds that determined the appropriate next step for each returned unit (refurbish, repair, or scrap), maximizing the financial return per device.
- Financial Modeling: Developed cost-saving projections and revenue potential models, providing the business case for the subsequent investment in the implementation phase.
Phase 2: Operational Orchestration and Implementation
With the business case approved, the focus shifted to operationalizing the end-to-end device lifecycle:
- Logistics & Processing Setup: Secured and onboarded specialized logistics providers capable of handling high-value electronics with secure chain-of-custody and integrated insurance protocols.
- Sales Channel Deployment: Orchestrated the technical and inventory integration required to push refurbished inventory to new distribution channels, including the primary e-commerce sales platform.
- High-Value Device Finance Launch: Worked closely with the finance organization to align inventory availability with the rollout of new consumer financing programs. This synchronization ensured that high-value refurbished devices had immediate, attractive financing options available at launch, driving faster sales velocity.
Impact: Establishing a Sustainable and Profitable Asset Cycle
The program successfully transitioned the provider’s returns process from a cost center into a strategic source of revenue. The program achieved a successful launch by creating a fully orchestrated ecosystem that connected asset recovery, refurbishment, and sales with dedicated financial products. This proactive approach to asset management not only delivered cost savings but also introduced a new, sustainable revenue stream and improved customer affordability for high-quality used devices.
