We regard remanufacturing to be an important instrument of After-Sales. Nevertheless, many OEMs still focus on their new parts business. Discover the potential remanufacturing has to offer and how you can utilise this tool for yourself and your company!
To sensibly utilise remanufacturing in your company, you first need to fundamentally classify and evaluate remanufacturing with regard to the existing business models, the current product and spare parts portfolio, as well as the current after-sales strategy. Taking into account the individual framework conditions of your company, we evaluate and define the primary objective of remanufacturing in dialogue with you, whereby we focus on a wide range of company-specific fields of action:
- Developing customer segments which aren’t fully adressed today
- Reducing spare parts prices
- Reasonably priced repairs for older/depreciated products
- Increasing spare parts availability
Based on the obtained results, we work with you to derive your individual strategy and outline a sensible and feasible implementation plan.
What advantages does remanufacturing offer?
Remanufacturing can provide an answer to a wide variety of questions: How can we offer our customers who own older, already depreciated products repairs at sensible and attractive costs? How can we still meet our competitive challengers with our spare part prices? How can we improve our carbon footprint in the long term by reducing pollutant emissions? In addition, the market volume of remanufacturing is constantly increasing – in Europe alone, market researchers currently estimate the market volume to be approx. 70-100 billion €.
Is remanufacturing also interesting for my company and how do I implement it?
In order to answer this question against the background of the individual corporate strategy, the company-specific evaluation of the use of remanufacturing is conducted first. On the basis of sound industry and competitive knowledge, we evaluate and confirm the strategic relevance from an external perspective to subsequently work out the long-term strategy. Once Management has confirmed the strategy, it is finally anchored in the company and the independent product line is established in after-sales.
What are the greatest challenges in its implementation?
We see one of the greatest challenges in the implementation of remanufacturing as the sustainable strategic anchoring in the company. This is the starting point for the subsequent operational implementation and therefore serves as the basis for successful remanufacturing. Remanufacturing as such is not difficult – however it is not easy to implement in cooperations as usually it is also a challenge in internal politics.
KBC played a substantial role in helping automotive OEM and Tier 1 to initiate and complete major remanufacturing initiatives. Our customers achieved a long-term increase in spare parts sales and margins and were able to substantially increase their market share for products older than 4 years. Remanufacturing also helped our customers considerably in safeguarding their spare parts supply.
For one of our first remanufacturing projects, we received the renowed “Best of Consulting” award from WirtschaftsWoche.
In addition to a wide range of practical experience and industry-specific know-how, KBC has a broad network of experts in remanufacturing and is therefore optimally connected throughout the entire remanufacturing industry. Our own studies and benchmarks as well as our involvement in organisations such as APRA also distinguish us here.