Benefits of Remanufacturing: How to Fuel Innovation Through Preservation

Proactive remanufacturing means planning for remanufacturing processes and partners well before a recall crisis or other component failure happens. This post explores the benefits of remanufacturing and emphasizes one in particular—the ability of OEMs to allocate more time and other resources to innovation and product development. We call it “fueling innovation through preservation.”

Reman is Not Just About Cores

It’s common for automotive OEMs to look at remanufacturing as an exchange process that focuses on cores (used parts that are refurbished for reuse). However, remanufacturing entails much more, especially in an industry and consumer climate that values sustainability in such high regard. OEMs really start to realize the benefits of remanufacturing when they:

• Change their view of remanufacturing from an exchange process to a planning process.
• Stop reacting and get proactive by making remanufacturing part of original product development.
• Find a third-party provider to manage remanufactured components throughout their lifecycle.

Don’t Wait for Components to Become Obsolete

Avoiding product obsolescence is one of the most important benefits of proactive remanufacturing. From a manufacturing point of view, obsolete parts are a problem, because the time that parts are available through suppliers is often shorter than the manufacturing and support life cycles of the products that use the parts.

By the time a product needs service, OEMs have already started designing and developing new products. So, planning is required to ensure that parts are always available.

From the OEM point of view, resources are always limited. Resources used for product services compete with those used in product development. As products age and need service, getting parts and schematics to fix damaged units becomes more and more difficult, time-consuming and expensive. Over time, allocating resources to fix old units can drain resources that might have been used for new product development. In the process, innovation and product development slow down.

Working with an OEM Service Center

OEMs can reduce product service costs by developing efficient processes with an expert partner in the form of a remanufacturing service center. By working with trusted remanufacturing partners at these centers, OEMs can look ahead and design product service processes alongside a chosen partner when new products are first designed and developed. This allows the remanufacturing process to be streamlined from the outset.

Remanufacturing service centers extend the lifespan of electronics and enable OEMs to capitalize on their initial investments. These centers combine:

• An onsite team of expert technicians to test and rebuild parts
• Massive warehouse space to store parts inventory
• A knowledgeable customer service team, who can advise parts dealers and other customers on the best course of action
• Sophisticated logistics and shipping capabilities that can get remanufactured parts where they need to go, quickly and efficiently

These capabilities and overnight shipping work together to beat the availability problem, and keep the supply chain open by providing quick, reliable delivery. Prompt delivery ensures that parts will be received on time and keep OEM production running at full capacity.

Fueling Innovation Through Preservation

Automotive OEMs must focus on their main enterprise - manufacturing. Working with a remanufacturing service center helps to delegate the responsibility of electronic component repair and stay focused on product innovation, process efficiency, and profit.

Smart OEMs outsource rebuilding, logistics and component management tasks for four simple reasons:

• When OEMs outsource remanufacturing tasks, they can save on overhead. Service centers provide OEMs with a way to save money. Instead of losing money by discarding components into junkyards, OEMs can work with a remanufacturing center that repairs rather than replaces parts. (Bonus: This also saves the environment).
• Working through a service center ensures a steady flow of components. When remanufacturing service centers combine forward planning, advanced logistics and massive parts inventory, OEMs can be assured that the parts they need will always be available. Avoiding unplanned production delays and unscheduled retooling due to a lack of parts can keep delivery on time and production costs under control.
• Faster completion and delivery. Forward planning and work with remanufacturing partners enable more efficient production and delivery processes.
• OEMs maintain focus on innovation and product development. When remanufacturers handle electronics lifecycle management, OEMs don’t have to worry about logistics or repairs on existing components. Instead, they spend more time taking advantage of business opportunities and developing technologies that customers want to buy. A trusted remanufacturing service partner helps fuel innovation through preservation of existing components on behalf of the OEM.

The Benefits of Remanufacturing Are Clear

When OEMs start thinking of remanufacturing as a planning process instead of parts exchange, the benefits are clear. Lower operations costs, a faster product service process and more time for innovation and product development are the benefits of remanufacturing through a service center.