REMANUFACTURED PARTS PORTFOLIO EXTENSION

Year: 2018
Location: Germany
Industry: Automotive

Aftersales Strategy

Remanufacturing is a sustainable approach to offer high quality yet cost-effective aftermarket parts. With this in mind, a premium automotive OEM trusted in Encory’s deep industry know-how to strategically extend its reman portfolio. In close collaboration with the OEM, Encory acted as strategic co-thinker in the decision-making process.

The Approach

To develop the portfolio extension, Encory conducting the following steps:

  1. To ensure customer centricity, Encory performed market analyses to identify specific automotive components with a weak aftermarket exploitation due to high pricing
  2. Further analyses showed that remanufacturing was feasible for many of these components to achieve an additional cost saving effect
  3. This proved that a regain of market share is achievable by introducing an alternative remanufacturing product line profiting from improved pricing and cost savings
  4. Development of business cases to facilitate the decision-making for the OEM

 

Value Added

The Reman portfolio extension provided the OEM with the following key benefits:

  • Competitive and market-oriented price positioning
  • Cost savings effects for remanufactured parts
  • Increased sales volume and higher total margin
  • Increased customer loyalty
  • Better brand value in price sensitive customer segments

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