Guarantees and goods returns in EU

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Business Challenge / Opportunity – “Even the established consumer brand within EU and looking for further expansion

Radoslav Seidl, CEO

 

TREE RESOURCES SE global sourcing offer solution for the “Guarantees and goods returns in European Union / long term sustainable after sales service of consumer products within European Union”

 

Basic principle of EU consumers’ rights within Guarantee and returns:

Under EU rules, a trader must repair, replace, reduce the price or give a refund if a goods bought turn out to be faulty or do not look or work as advertised.

If bought a goods or a service online or outside of a shop (by telephone, mail order, from a door-to-door salesperson), you also have the right to cancel and return your order within 14 days, for any reason and with no justification. Addition return period vary and applies in accordance each EU country applicable regulations.

These consumer rights are EU wide valid and enforceable.

 

Typical market challenges

  • Unclear / invisible guarantee and returned goods (after sales) approach -> strategy -> policy neither (formulated nor implemented).
  • Unclear guarantee and returned goods financing
  • Returned goods in stock, storage cost, goods scrapped finally (plus payment for waste disposal), risk of back payment for returned goods in warranty period
  • Reputation damaged – warranty not handled properly

 

Risks

Direct financial risk / exposure is pretty high plus additional indirect cost (including handling, payment, reputation damage) when after sales not handled properly. Overall exposure is expected in large scale in European Union / with potential to accumulate and further growth. Non financial risks also applies mainly within areas of customer perception of manufacturer / merchant brand with potential to withheld positive reputation brand (customer positive perception / positive emotional brand connection damage).

 

TREE RESOURCES – guarantees and returns goods strategy (after sales strategy)

Typical implementation is based on:

  • Review of Customer existing after sales practice
  • Industry best practice / benchmark
  • Customer Business strategy / Business requirements
  • Further gathered information when required
  • Applicable EU laws and regulations

 

Typical implementation deliverables represents:

  • Legal positioning
  • Organization aspects (business processes, RACI, etc.)
  • New after sales standard positioning (audience , positioning, lifecycle, participants and their roles)
  • Service aspect (scope, KPI, SLA, cost, reporting)
  • Technology aspects (equipment, SW, features standard and its optimal usage in Customer environment, etc.)
  • Implementation within territory whole European Union

 

TRSE providing its expertise to enable Manufacturer to formulate long term sustainable market presence and positions of Manufacturer consumer products after sales procedure (warranty / non warranty) including all details (organizational, procedure, KPI, standards, logistic, financing) in the European Union common market (€16.5 trillion in 2016, representing 22.8% of nominal global GDP, total population over 507 million citizens in 28 countries). Please feel free to contact us for further details.

Our mission