Change in one area of a supply chain naturally ripples across others. One Apkudo customer set out to make its device operations more efficient, cost-effective, and scalable. In the process, the wireless leader sparked a network effect that positively impacted the connected device supply chain.
After acquiring a smaller prepaid wireless company, a US wireless carrier had significant reconciliation issues between systems. System integration can significantly improve operations. So, Apkudo's team stepped in to build, test, and prove a minimum viable product in just six weeks, which was no easy task given the complexity of the different file types, multiple users, and various partners involved.
This short-term project turned into a long-term relationship because both companies are committed to continuous improvement and innovation. It is a natural combination that has delivered results for more than a decade.
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When Apkudo and the customer began working together in 2013, the shift from basic cell phones to smartphones was dramatically changing device usage patterns. People were not just making calls or texting; they were downloading and using apps and taking photos and videos.
Pre-launch testing. The customer saw increased purchase returns, so the Apkudo team knew it was time to adapt pre-launch device testing for smartphones. Apkudo's automated device testing was the perfect solution for the customer.
Apkudo’s automated device testing simulates real-world usage. In three to five days of testing, Apkudo’s team replicates issues consumers would not typically see until three to six months after purchase. Apkudo correlated the identified issues with the customer's increase in purchase returns and provided detailed device data and recommendations to the OEM. As a result, the customer observed reduced returns and minimized the high cost of repairing phones in the field. Device quality and customer satisfaction improved as well. Today, the customer relies on Apkudo’s automated device testing technology to certify all Android devices.
Post-launch testing. A short time later, the customer began partnering with Apkudo for the post-launch side of the business—specifically, the customer wanted to see how Apkudo could help when the carrier started to see increased device purchase returns after a software update.
The customer sent the returned devices to the OEM for repair, but many returned to the customer labeled with no trouble found (NTF) or no fault found (NFF), indicating no hardware issue. Because the devices were already reset to their factory settings, there was no way for the customer to determine what, if any, the software issues were. Apkudo's automated testing changed that. It simulated various software issues to pinpoint root causes and provided data to the OEM. Reducing the number of NTFs and NFFs meant massive cost savings for the customer and the OEM.
Quality repair metrics. Identifying and addressing field issues with returned devices before resale can significantly improve the second owner’s satisfaction. Return devices need to be refurbished and repaired, and Apkudo’s solution gave the customer confidence in the quality of refurbished devices before shipping them out.
Device processing. With these successes, the customer continued exploring ways the Apkudo team could help improve mobile device operations. Soon after, they saw an opportunity to partner with Apkudo to solve even larger reverse logistics challenges.
The customer had recently consolidated three return centers into one, selecting a sole third-party logistics provider. The logistics partner handled returned device processing and grading and advised the customer on resale options based on device functionality and cosmetic quality. The faster and more accurately the logistics partner processed devices, the sooner the customer recognized resale revenue.
Once the return center was established and running, the customer looked to Apkudo to collaborate with the logistics partner and optimize operations. The goals were to improve processing productivity and visibility of device data. To do this, Apkudo implemented its automated device processing solution in the return center.
This was an industry first. AI-driven robotic automation dramatically improved the velocity and consistency of device processing and could easily scale as the customer’s business grew. The customer had access to extensive processing data and diagnostic results for the first time, allowing them to make more data-driven decisions about device disposition. Today, between 1.5 and 2 million devices run through the return center every month.
The customer and Apkudo continue to advance automated device processing and warehouse automation. For example, when the customer needed a solution for processing foldable devices, the Apkudo team began designing and engineering a new automation cell technology to make it happen, which is scheduled to deploy in Q2 2025. This dynamic is at the heart of the customer and Apkudo partnership. It is grounded in innovative problem-solving.
Apkudo has delivered significant cost reductions to the customer during the decade-long partnership. When the two companies began working together, the customer had a 23% bounce rate (return rate for repaired devices). Today, that bounce rate is less than 2% year-to-date.
Reducing the number of device returns has translated into an estimated $72 million savings over ten years. Apkudo has also helped the customer realize $6 million in savings related to non-repair audits.
Automation has made a tremendous difference in return center processing. It used to take an average of 60 days to receive a device and ship it out. Now, in many cases, returns processing takes just ten days.
Apkudo’s big-picture approach and the data insights from Apkudo’s solutions are key to delivering outcomes for the customer. OEMs also receive invaluable data that helps resolve issues and improve device quality.
Bringing together device, process, and operations data—and a platform that connects stakeholders to make and manage decisions in new ways—solved a gap in the connected device industry. Apkudo continues to focus on productivity, cost reduction, and innovation to take the customer's mobile device operations to even greater heights.
Device Intelligence
System integration
Disparate data
QA
Manual processing
1.5-2M devices processed monthly
iPhones and Android
United States
Leading telecommunications company providing wireless voice, messaging, and data services.
