Repair is a regular feature in service based products under a warranty period and almost all consumer durables need repairs on a regular basis. Refurbishing, on the other hand, is applied to goods returned by damage, defects or below promised performance during the warranty period.
Manufacturers may establish the reverse logistics system, not only for offering free service during the warranty period but also for extending the services beyond the warranty period on a chargeable basis.
The system usually operates through the company’s service centers where repair and refurbishing takes place.
The physical collection of defective products is performed through a dealer network. The collected products are sent to the nearest service center for overhaul, repairs or refurbishing.
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