Remanufacturing is no more undervalued.
Remanufacturing became the best solution to OEM Customer Value Creation.
Yes. Remanufacturing works for many. How?
Remanufacturers utilize great engineering and manufacturing processes to transform old machines into machines that are comparable to new ones.
They offer remanufactured machines with the same performance specifications, warranty, and life expectancy as new machines, yet at a lower cost. What’s more, the process decreases wastage, energy consumption in production, and raw materials.
Differences between Recondition, Refurbish, and Remanufacturing
Individuals confuse about the terms – Recondition, Refurbish, and Remanufacture. We should put any misinformation to rest:
Reconditioning includes restoring a product to the reconditioning center where it goes through an external physical check and an internal visual assessment. The inner parts will be cleaned of any unexpected material development and then reassembled. The outside might be finished up to make it look good.
At last, there will be a short test to ensure there is essential functionality. Then, the item is packaged for resale or shipment with a short warranty and at a generous rebate from the listed cost.
During the remodel, the products will be returned to the renovation center along with their service and utilization records. A certified professional can dismantle, visually review, test appropriate segments, and replace any parts with obvious wear or a history of failure. After reassembly, the item will be altogether tested, visually assessed, and changed as needed to make it look almost as good as the new item, and sold at a discounted price lower than the listed cost, or shorten or extend the warranty time.
For electronic items, restoration might be the highest level of appropriate remanufacturing to bring older products into an attractive and usable state.
At remanufacturing center, actual work starts.
Each part is checked to guarantee that it reacts to current engineering drawings. This implies that a machined part is totally cleaned (counting stripped of paint), dimensionally investigated, and tested for damage, lastly made similar to a new part. An electrical or electronic part gets a total visual examination and assessment, at that point raised to the current shipping level, if possible.
The “equivalent to new” (ETN) parts are then assembled into the final product in the same way to a new item is manufactured. The item is visually assessed, tested, calibrated, and whatever else like a new item. The primary differences are:
- Many parts are ETN – not new.
- The item is sold with a new equipment warranty and is qualified to be covered by any service contract that the organization offers.
- Installation, if any, is done by similar procedures as new items.
- The item can be sold either by the primary sales force or, if the manufacturing activity is huge enough, by a dedicated sales force that doesn’t compete with the new item group.
Why organizations sell remanufactured items
There are a few reasons why an organization should remanufacture its items. You can be certain that these reasons have been analyzed in detail and make sense to the decision-makers.
- They sell to geographic areas and market sectors where the cost of their new items prohibits the sale of new items.
- Some new businesses purchase remanufactured capital equipment to save money, and the vendor would like to purchase new ones as they commercialize their innovations. This is a better choice than offering huge discounts (this is regular in enterprises, for example, semiconductor manufacturing).
- They need to accomplish something with the items they reclaimed in exchange stores.
- Organizations today need a solid environmental focus.
- Remanufactured items produce positive margins and recurring service revenues.
Why organizations purchase remanufactured items
Various organizations purchase remanufactured items for a couple of reasons:
- They like to purchase a specific brand yet can’t manage the cost of new items.
- They are environmentally conscious.
- They already have at least one older items and need to add capacity, yet they don’t have to figure out how to utilize a fresher model. They may already have a good stock of spare parts and trained in-house experts accessible.
- At times remanufactured products have a shorter delivery time than new items.
- Instances of Companies That Increase Revenue, Customer Value with Remanufacturing
Instances of Companies That Increase Revenue, Customer Value with Remanufacturing
Clinical device organizations are active in this market. A portion of the market players operating in the remanufactured clinical imaging market incorporates GE Healthcare, Philips Healthcare, Toshiba Medical Systems, Shimadzu Corp., Carestream Health Inc., Hologic Inc., Hitachi Medical Corp., and Siemens Healthcare.
GE Healthcare has a huge remanufactured systems business line under its GoldSeal ™ brand. (Don’t forget that electronic things usually don’t have to address the remanufacturing process.)
According to the brand’s site, Clinics and imaging centers need to provide protected, dependable, advanced, and cost-effecting imaging and ultrasound solutions for their networks – in any event, when budgets are tight. When confronted with competitive capital priorities, they can still access technology, which offers the true serenity provided by GE Healthcare’s thorough warranty and field service team, which they know and trust.
Cisco is a popular manufacturer of switches, routers, phones and security items, and many software. The brand runs a program called Cisco Refresh, where they offer remanufactured items at “exceptionally competitive, pre-discounted net prices.”
Cisco site clarifies – “At Cisco, we believe more than ever that what is good for the world is good for business,”
Re-manufacturing Business Opportunities
You can see that manufacturers of all single size products, from telephones to counterfeit hardware, are in the matter of renovating.
Along these lines, if you are not presently re-manufacturing your items, you should get your homework and consider whether this is a route for you to make more client value.
If you are already in the remanufacturing business, you can hire warranty service experts to handle your product maintenance post-sales. They will handle both in-warranty and out-warranty services on all types of equipment.