Global Supply Chain issues have existed for 2+ years with no definite end in sight. Product sourcing teams are plagued by a lack of components, parts, materials, or finished goods, longer lead times, and dramatic price increases. Businesses are rethinking and re-evaluating how they source critical commodities. Dependent upon your business need, one solution rises to the top of the consideration pile, remanufacturing.
In one broad stroke, Remanufacturing addresses 5-key supply chain second-sourcing considerations — part compatibility, availability, lead time, price, and quality. Remanufacturing (Reman) by definition “is a comprehensive and rigorous industrial process by which a previously sold, worn, or non-functional product or part is returned to a “like-new” or “better-than-new” condition, from both a quality and performance perspective.” As defined by the Remanufacturing Industries Council. “There are currently 12 recognized sectors of the remanufacturing industry — “aerospace, automotive, consumer products, electrical apparatus, furniture, heavy-duty equipment, information technology, locomotive systems, machinery, medical devices, restaurant equipment, and tires”.1
But what does this mean for you as a Sourcing Specialist?
Part compatibility — You’re able to purchase the same component (replace like with like) only remanufactured; components are upgraded to the latest specifications and quality-test assured. Eliminates verifying fit & function or the need to redesign finished product.
Availability — If you have a core, the original equipment manufacturer’s part, send it in to be remanufactured. The fact your part already exists reduces lead time. of many unavailable or long lead time new products
Lead Time — A core is remanufactured and is made into a “like-new” or “better-than-new” state. Turnaround times are typically shorter for reman product than new production as less component parts are required.
Price — Materials, energy, and time invested in rebuilding/assembling a refurbished product are less than a “new” product. The result, remanufactured products typically sell for “40-50 percent less than a new one”2.
Quality — Sold, worn, or non-functional products or parts are returned to a “like-new” or “better-than-new” condition. This means the core is returned to its original performance factory specification, upgraded to current performance levels, or is improved due to learned errors.
Support — As a bonus, companies like Flight Systems Industrial Products have long-standing relationships with the Original Equipment (OE) manufacturers. FSIP is able to provide technical support and warranty all remanufactured products.
Remanufacturing is a Sourcing Specialists’ ultimate solution. No longer do procurement personnel need to research comparable replacement second-sourced components (saving time & human resources), they’re able to source “like-new” of the same item (shorten lead times & increase availability) for less (save money) and maintain quality (upgraded and warrantied). Remanufacturing as a supply chain solution is not limited to economic challenging times, it is a solution for all times and business environments.
Remanufacturing can be implemented to help drive a business’ environmental/green initiatives. Remanufacturing is the 4th unwritten “R” in the “Reduce, Reuse, Recycle” mantra. Watch for more information in the next post.
About Flight Systems Industrial Products:
FSIP are experts in electronic remanufacturing services. With 55-years of manufacturing and remanufacturing experience, FSIP is an established “new” part alternative supplier for electric battery vehicles and equipment.
We:
- Have long-standing partnerships with leading OEMs like Curtis, inMotion, Navitas, Sevcon, and S.P.E. Elettronica
- Stock brands like Delta-Q, Enersys, Hawker, Caterpillar/Mitsubishi, Toyota, and Zapi
- Service industries like Material Handling, Go-Karts, Golf Cars, Electric Boats, and Ground Support Equipment
- Have strict quality standards
- Provide full warranty coverage
To learn more about FSIP’s remanufacturing program, products, and benefits check out our The Place for Electronic Solutions Blog Part IV and Part V.
Citations:
1 “Reman 101”. Retrieved from https://remancouncil.org/reman-101/
2 Ruth Andrew. “Remanufacturing: recycling materials, recouping costs, refining designs”, manufacturingdigital.com, Smart Manufacturing, May 16, 2020, https://manufacturingdigital.com/smart-manufacturing/remanufacturing-recycling-materials-recouping-costs-refining-designs. Accessed October 29, 2022
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