Year: 2019
Location: China
Industry: Automotive

Parts Portfolio Management

Being the biggest automotive market, China needs specific offers for its growing car park, volatile legal landscape and price sensitive customers. Remanufacturing is a sustainable approach to offer high quality yet cost-effective aftermarket parts. With this in mind, a premium automotive OEM trusted Encory’s deep industry know-how to strategically extend its local reman portfolio.

The Approach

The following steps were conducted by Encory to manage the reman project for AC compressors in China:

  1. Market and part number analyses were performed to identify the most attractive product portfolio on part number base
  2. Economic analyses determined cost savings of local remanufacturing in comparison to the production of new parts and to global sourcing
  3. Development of business cases to facilitate the decision-making for the OEM
  4. Close cooperation with the OEM’s and remanufacturer’s R&D enabled the technical feasibility
  5. Well-coordinated communication between the various OEM’s stakeholders and the remanufacturer as well as continuous time plan monitoring ensured a smooth project progress


Value Added

The Reman project management and product implementation provided the OEM with the following key benefits:

  • Broadened reman product portfolio
  • Increased customer retention and loyalty
  • Achieved manufacturing and sourcing cost savings thanks to local remanufacturing
  • Better brand value in price sensitive customer segments
  • Reduced material resources and contributed to environment and sustainability goals

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