The feeling at a new product launch is exhilarating. Years of hard work, research and testing have finally paid off. Your product is in the hands of consumers, who will put it to use for many years to come.
You may not thinking about core seeding.
Who would blame you? Your hard work has just paid off; why would you want to think about when things go wrong?
You should savor the victory of a successful launch; however, forward-thinking companies are thinking beyond launch and instead focusing several steps ahead. They’re planning for the inevitable need of an electronics remanufacturing program.
And as a result, they’re saving their companies significantly.
How do electronics manufacturers like Christie Digital save over 90% in the remanufacturing process? Foresight.
Product failure is an unfortunate reality of the electronics manufacturing industry, but it doesn’t have to ruin all hopes of service success. In fact, with proper foresight, organizations like GM and Christie have proven that a proper core seeding program can save up to 99% of costs as compared to purchasing new product.
Following are three (3) important elements to consider for core seeding and implementation of an electronics remanufacturing program:
1. Plan Ahead With Defective Parts
Many manufacturers are so focused on product launch, they often throw away defective parts. This is a crucial -- and costly -- mistake. Inevitably, an electronics remanufacturing program will be necessary down the road, due to product failures. Purchasing new inventory to build up seed stock and tooling up production to meet increasing demands are extremely expensive ways to meet this need. Proactively focusing on core seeding at project launch eliminates the need for a reactive approach and protects your bottom line.
The potential savings are considerable. Often, companies save up to 90% of their product price when they have planned ahead for their electronics remanufacturing program.
2. Include Remanufacturing in the Bid Process
Setting up your electronics remanufacturing program is a key part of the PLM process. A successful reman program relies on core seed stock to service warranties and meet repair needs during both warranty and post-warranty periods.
After a manufacturing production process is complete and lifetime buys have been made, the procurement of new units and replacement components is no longer feasible as OEM’s have tooled their production lines to produce new model year product.
As the product life cycle matures, the volume of seed stock begins to diminish. To proactively plan for this reality, seed stock inventory must be allocated and built into the bid process. The best time to create seed stock is during the first six months of production. Planning for the implementation of a sustainable manufacturing program upfront will help shield from customer dissatisfaction stemming from potential defects in product design or individual component failure.
3. Choose the Right Electronics Remanufacturing Partner
The development and implementation of an electronics remanufacturing program can be an arduous task for many organizations. Choosing an experienced partner who has a proven track record of helping organizations save considerably while delivering a superior customer experience is essential. The next blog in this series will examine how the right partner can help your organization.
Interested in learning more? Click here to continue reading the next blog in our series: "Leveraging Strategic Electronics Remanufacturing: PLM Opportunities and Challenges."