Revenue Sharing (RS)

Goal : Client wanted to outsource Reverse Logistics returns processing and wanted recover the highest possible profit on the resale of the returned goods.

Achieved : The OEM significantly reduced their in-house Reverse Logistics costs. They also received access to better secondary market channels to sell their refurbished goods at a much higher price.

The Vivitech RS Solution :
Vivitech studied the OEM’s existing operations and proposed Revenue Sharing. Upon receipt of the return products from their customers, Vivitech processed and refurbished the items. The cost of refurbishment, repair. labor and packaging were Vivitech’s responsibility, while product remained property of the OEM company. When refurbished stock was ready, Vivitech would work together with the client on the availability report, utilizing both companies respected channels to recover maximum dollar value for the refurbished inventory. The OEM and Vivitech would then split the revenue equally.