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Management article
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Reference no. P0507B
Published by: Harvard Business Publishing
Published in: "Supply Chain Strategy", 2005

Abstract

Outsourcing after-sales services - from product repair, transportation, and warehousing to call center support and returns processing - has helped many companies slash costs and sharpen their focus on core competencies. But, as too many firms have discovered, it can also backfire loudly and put reputations at risk if executives mismanage the process. Yet despite the apparent risks, managers in a widening range of industries are exploring after-sales outsourcing. So how do you leverage the advantages of outsourcing postsales services for both your company and customers while avoiding the pitfalls? Read more to find out what you should do before spinning off repairs, parts distribution, or customer call centers.

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Abstract

Outsourcing after-sales services - from product repair, transportation, and warehousing to call center support and returns processing - has helped many companies slash costs and sharpen their focus on core competencies. But, as too many firms have discovered, it can also backfire loudly and put reputations at risk if executives mismanage the process. Yet despite the apparent risks, managers in a widening range of industries are exploring after-sales outsourcing. So how do you leverage the advantages of outsourcing postsales services for both your company and customers while avoiding the pitfalls? Read more to find out what you should do before spinning off repairs, parts distribution, or customer call centers.

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