I've just completed my first re-drying of desiccant sachets and would have to say it's surprisingly easy.
Silica Gel desiccant needs to be heated for a period of time at between 104 and 118 deg. C to dry properly and not damage the silica or the packaging. Too hot, and the silica will crack/crumble and/or the packaging will melt or split. Drying is best done in a fan-forced oven that'll keep an even temperature. (For loose silica beads, a microwave can allegedly be used but beware power settings - it's apparently very easy to overheat desiccant in a microwave).
The Trial Run:
I have a thermometer that reads up to 105 deg. C, which I attached to the front of the top oven shelf with hobby wire, so that I could see it through the glass door. With fan on high, I experimented with oven settings until the thermometer read a steady 104 deg. C - my theory being that the temperature at the centre of the oven would be a few degrees higher - and that happened to correspond to an oven setting of ~115 deg.C, so I figure my oven is fairly accurate.
I put 5 indicating sachets into a small pyrex dish and spread them out evenly. The dish has a lid, but that's not needed until later.
Into the oven they went (lidless). Despite some advice online that drying can take several hours (from 2 hours up to 24 hours!) I found that the indicating desiccant turned completely and utterly blue in under 10 minutes.
I removed the dish, placed the lid on it and let it cool. Silica Gel retains heat very well, and the sachets will be too hot to handle for a while. When the dish is cool to the touch, the desiccant should be safe to store.
The Production Run
I put all of the non-indicating sachets (~80) in my large pyrex roasting/baking dish (also with a lid) and mixed in the remaining indicating sachets (35) - they were 2-3 deep.
Given the larger quantity, I had originally aimed to dry for at least 30 minutes. However, the visible sachets turned blue in under 10 minutes as before. I kept going for 20 minutes to be reasonably sure that the lower layers were "baked".
As before, I removed the dish and put the lid on to let it cool. I poked around gently with a wooden spoon and found that all of the indicator sachets were completely and utterly blue, even the ones buried at the bottom.
Inspection
After cooing, I inspected a sample of indicating and non-indicating sachets, and found no damage to silica beads (all nice and round, with no cracks visible) or to the packaging (the edges of some sachets had slightly curled up, but that was all).
Conclusion
Re-drying desiccant in sachets is surprisingly easy using a fan-forced oven and a pyrex baking dish. No need to spread them out on wire trays or bake for hours - 20 minutes at 104-118 deg. C, heaped 2-3 deep in a dish, worked just fine.