Abstract
Although academic research and some industrial experiences show that a reverse supply chain (RSC) based on remanufacturing offers the possibility to transform the constraint of environmental regulations on product recovery into an opportunity for value creation, few companies have managed to set up their own RSCs. Five research propositions on the condition of emergence of RSCs follow from a literature review and are applied to a case study from a global player in the electrical and electronic equipment (EEE) industry. The findings support the importance of an integrated approach for the design and implementation of a RSC. This integrated approach responds to the traditional questions of OEMs, ‘Why’ set up a RSC?; ‘What’ main conditions must be taken into account in the three segments of a RSC (procurement, production, and distribution)?; and ‘How’ can these conditions be satisfied?
Highlights
Automotive remanufacturing companies are nowadays facing a wide range of challenges
The main fields of challenges analysed in this paper are: the vagueness in respect of fiscal value, environmental regulations and taxation of core parts, the important need for a continuing qualification of staff and engineers, an efficient core management, the adaption of pricing models and the competence to handle the growing variety and complexity
Automotive remanufacturing is of growing importance within the automobile industry
Summary
Automotive remanufacturing is of growing importance within the automobile industry. Nowadays every OEM has programs with remanufactured parts and their market volume is growing [12]. Targeting for an earlier end of production (EOP) of new spare parts, OEMs establish more and more remanufacturing systems. Reasons for this are rising production costs per produced part as an effect of decreasing production output. In many cases production lines and the resources (e.g. staff, machines) are needed for newer production lines [9]. Like all other branches the remanufacturing companies have to address challenges to stay competitive. In this paper today’s most important challenges are highlighted. The aim of this paper is to put important remanufacturing-specific challenges together and create awareness of all responsible
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