Resource: Issues and Challenges: for Remanufacturing Companies
Remanufacturing has many implications for companies in terms of organization and relationships with customers, suppliers and other manufacturers.
Tuesday, 21st November 2006
- In direct competition with low cost imports, only organised, low cost organizations will be able to engage head to head.
- Reputation, warranties, relationship with OEMs, and excellent bi-directional logistics will be major competitive issues for local contenders.
- Do not compete on price: provide complete supply and maintenance and refurbishment service to reclaim value chain directly.
- Identify novel service/product combinations, particularly those that combine purchase, maintenance and upgrade capabilities.
- Seek opportunities to tie in to OEMs or to accredited brokers and distribution channels for added credibility.
- Back-integrate into customers operation to in-source the aspect of operation related to use of the equipment.
- Become the local maintenance and remanufacturing arm of a reputable foreign importer, particularly if they have no presence in the UK; consider profit share or equity stake of OEM in business.
- Do not remanufacture for primary home, European or other western markets, but rather for secondary markets.
- Relocate or create subsidiaries in developing markets to take advantage of local cost structures; this creates a foreign remanufacturing operation at point of high demand, but also capability to re-import cost-effectively into the developed world.
- Urge industry associations to present a coherent message for remanufacturing in their sector.
- Ally with other service providers, such as logistics agents, where the above service is beyond the scope of knowledge, or is at another business interface.
- Consider opportunities in logistics and brokering of core components using existing skills, and leveraging economies of scale.
- Get together, for example in trade associations, to lobby for changes to legislation that are unfairly hampering competition.
- Benchmark and identify best practices within and without the sector.