BACKGROUND
Founded in 1997, TiVo (NASDAQ: TIVO) pioneered the digital video recorder (DVR) for consumers. Through relationships with leading satellite and cable providers, TiVo also integrates DVR service features into the set-top boxes (STBs) of mass distributors.  The company’s DVR functionality and ease of use has elevated its popularity by creating a new way to watch television.  With an ongoing investment in patented technologies, TiVo is revolutionizing the way consumers enjoy home entertainment.

TiVo is a diverse company that offers proprietary branded and licensed DVRs to major national retailers and entertainment service providers.  While its primary source of revenue is subscriptions and STBs (set top boxes), the company also has a lucrative analytics research business unit that utilizes anonymous information gathered from DVRs to help well-known global brands refine advertising strategies.  With more than 3.8 million total DVR customers, efficiently managing supply chain operations is key to TiVo’s success.

Along with ensuring reliable and consistent delivery of its primary equipment, TiVo must also provide repair and/or refurbishment services for its valuable assets.  Because of the high volume of inventory, the company sought outside providers to manage these complex processes.  The search criteria were based on price, quality, and the portfolio of services supported by a reliable IT infrastructure.  After careful review of candidates’ proposals and in-depth due diligence, TiVo identified ATC Logistics & Electronics (ATCLE) as the partner to control forward and reverse logistics processes, while providing the expertise for repair and refurbishment of their advanced devices.

EXPERTISE AND COLLABORATION
In addition to meeting the stated criteria, TiVo selected ATCLE for its advanced information technology system and sophisticated infrastructure that could efficiently manage a complex supply chain that feeds inventory data to TiVo’s big box retailer and service provider customers.  ATCLE’s  reverse logistics expertise was also key to the high velocity DVR repair and refurbishment specialization needed.  To deliver the highest level of results, ATCLE worked closely with TiVo’s internal operations to gain an in-depth understanding of their inventory and service needs.  This level of collaboration and flexibility established a centralized, more capable supply chain enabling a lower cost, higher quality solution.

IMPROVED OPERATIONS AND PERFORMANCE
Through ATCLE, TiVo now has a single point of operation for forward and reverse logistics.  This translates to a much more streamlined supply chain that keeps valuable DVRs in circulation, rather than accumulating in warehouses where revenue is not being generated.  Transporting inventory to multiple locations is also eliminated, which creates further efficiencies.  In addition, TiVo now has the capability to not only fulfill new product demand, but in the event of a customer issue, can replace inoperable devices with refurbished units all from one centralized location.  This refined focus also reduced the need for expansive management oversight, further reducing costs and improving processes.  As the relationship matures, ATCLE continues to work closely with TiVo to identify ways to innovate and improve TiVo’s supply chain operation.

In its on-going quality initiatives, TiVo conducts regular internal benchmarking.  In its analysis, TiVo recognized ATCLE’s success in helping them realize significant supply chain efficiencies and capital expenditure reductions.  To date, TiVo has benefited from the full gamut of ATCLE’s sophisticated services.

SIDEBAR
Proven Flexibility and Scalability

By working with ATCLE, TiVo has enjoyed improved productivity in logistics as well as its test and repair operations:

• Doubled forward output and repair services twice within 90 days
• More than doubled outbound pieces in three months
• Increased daily repair capacity by five times within six months
• Achieved quality rating of 99.98 percent in forward and 99.99 percent in reverse operations