How can OEMs scale up remanufacturing in product-as-a-service (PaaS)? – challenges and enablers from a theoretical and industrial perspective

Abstract

In product-as-a-service (PaaS) systems, the ownership of products remains with original equipment manufacturers (OEMs), and customers get access to the functionality of products by signing a usage-related contract. The PaaS business model changes the boundary conditions of a production system and related logistics. To increase circularity, PaaS shall be supported by value retention processes, such as remanufacturing. Currently, remanufacturing in PaaS in business-to-consumer markets (B2C) is a niche practice. This paper aims to identify the main challenges and enablers for OEMs to scale up remanufacturing when transitioning to PaaS in B2C. Through the PRISMA systematic literature review of 48 relevant articles, we identify 20 challenges and 19 enablers, grouped into six areas: products, legislation and policy, customers and market, servitisation, remanufacturing process, and the return system. To make this study more actionable, we applied a gap analysis and combined the theoretical findings with an assessment of their impact in practice by five experts with experience in industrial cases. As a result, we have narrowed the list of factors to 12 challenges and 14 enablers. These factors are structured as a decision aid for OEMs to facilitate their transition to remanufacturing in PaaS.