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Remanufacturing: benefits and challenges of a sustainable solution

The development of the remanufacturing sector fits in a global scenario that presents complex situations for the automotive industry, more than it ever had. Among these complexities can be counted scarcity of resources and clogged supply chains. Under this light, the end scope of remanufacturing processes is to bring new life to components that otherwise would have ended their cycle of usage. In this aspect, similarities might come with the theme of recycling. Nevertheless, it should be noted that the remanufacturing process potentially brings even greater upsides, since it does not need to destroy an object and subsequently to rebuild it from scratches, with a lot of energy consumed that comes with it. Instead, it requires the restoration of an electrical component to its full potential only through the substitution of those small parts that are actually faulty.

Here we can sum up, then, all the benefits that a successful remanufacturing operation brings to the table of production processes and placing on the market:

• The result of the process is an end product that keeps the same value and characteristics of the original product;
• It brings to the minimum the usage of new materials and resources, consequently reducing the need for raw materials and the production of waste to be disposed of;
• Energy requirements in production stages go down significantly when compared to the brand-new part.

Of course, other than the large number of benefits, remanufacturing processes also bring a series of challenging and complex aspects. The identification of the issue with the malfunctioning component is probably the most crucial one. The whole stage of disassembly need qualified human intervention, since every faulty part has its own history and its reasons why it is not working anymore (source: https://www.industriaitaliana.it/la-prossima-rivoluzione-industriale-il-remanufacturing/). On the other hand, this aspect, too, add good marketing opportunities in the promotion of a positive public opinion. The sum of the social component arising from human work revaluation and the positive environmental impact represents an important boost for an industry that often struggles in building their own positive image to the public without risking falling back to greenwashing.

The remanufacturing practice is already widespread in the automotive industry. Manufacturing companies (BMW, Volvo, Mercedes, Audi and many more) and some important aftermarket brands (i.e. Bosch, Denso, etc..) have been following this path for years now. Some companies are even specialized exactly in reman spare parts (for example, Remante Group in Czech Republic). This also means high levels of competition over these kind of spare parts, where it is even more complicated to find and adopt the correct market positioning. The unpredictability in the remanufacturing intervention makes it very difficult to choose a pricing strategy before collecting enough information. MarketingPRO is here for answering to exigencies like these and to conduct your market researches and analysis, with our best competence, experience and professionalism. For any further question or information, please contact us at [email protected]

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