The strategy for implementing remanufacturing process in a commercial enterprise, the case study of a French company

Abstract

Remanufacturing is considered one of the most effective and efficient end-of-life strategies of the circular economy, in terms of environmental benefits and economic viability. Products are circulating all over the world, coming from multiple sources and numerous intermediates. Thereby, making the supply chain between the user and the Original Equipment Manufacturer (OEM) very complex when it comes to recovering products at their end-of-life. In fact, local sellers have direct contact with users, as they are geographically close, which makes it easier for them to recuperate worn out and obsolete products. However, these sellers lack the know-how and the technical knowledge necessary to develop the remanufacturing process. This paper presents the strategy to be followed by small companies to adopt and implement the remanufacturing process, in order to give these end-of-life products a second life and to make a profit from both new and remanufactured products. In particular, it focuses on the specific case of a small company in France, that included the process of remanufacturing air compressors and electric motors in its business model and started selling them directly to users. Therefore, this study will display the multiple advantages that this remanufacturing strategy has to offer and will also show the barriers that can be faced when applying this strategy.