An OEM Remanufacturing Service Center is an entity that specializes in extending the lifespan of products by using the process of remanufacturing, which means rebuilding products to a like-new state. Remanufacturing has proven to be a more economical investment compared to the cost of newly manufactured replacements, and allows OEM’s to capitalize on their initial product investments.
OEM remanufacturing service centers often specialize in warehousing and distribution services as well, allowing for OEMs to focus on their core competencies in manufacturing, while service centers handle the entire process of Product Lifecycle Management (PLM) support on existing product. That means service centers should have the capability to handle the distribution of new product, the remanufacturing of damaged product, and the harvesting, recycling, and disposing of product at end of life. To fully support the PLM process, OEM remanufacturing service centers require large warehousing space, an organized inventory system to accommodate new and remanufactured products and supplies, and knowledgeable staff at every level.
Remanufacturing Service Center Responsibilities
A problem OEMs face is staying relevant with end-users. That means, staying competitive with advancing technologies and continuing to offer the high quality products to meet the brand expectations of end-users. OEM remanufacturing service centers strive to maintain that same brand integrity in remanufactured products. When end-users see a logo, they expect a durable, high quality product regardless of its new or remanufactured state, and fast, accommodating service.
The efficiencies of a service center’s operation, the quality of its products, and the accountability of its staff are directly correlated with an OEM’s brand integrity, even if the service center does not deal directly with the end-user. In many cases, the end-user is often unaware of a service center’s existence or participation in the process. Getting their product back in working condition is an end-user’s only concern.
OEM Service Centers and the Auto Industry
In the auto industry, auto electronics service centers became relevant during WWII, when raw materials to support manufacturing and repair became scarce, as any available material was needed for the war effort. Manufacturers had to get creative, and remanufacturing units as opposed to manufacturing replacements became the most viable solution. Due to its cost-effectiveness and convenience during war time, the process of remanufacturing was heavily advertised and caught on fast.
Automakers quickly adopted this process and service center networks were born. For some automakers, auto electronics service center networks grew so large, there were auto electronics remanufactures located in or near just about every metropolitan area across the U.S, allowing fast, local and convenient service to auto owners with damaged electronics. By the late 1990s, service center networks began consolidating due to the convenience of same and next day shipping.
Since then, service center networks have consolidated significantly as efficiencies allowed automakers to focus on quality over quantity, and only retain their top performers. As the industry continues to evolve to accommodate the growing autonomous vehicles sector, OEM remanufacturing service centers must continue to keep pace.
