A clear distinction between these two is crucial, as it can negatively affect consumer perceptions, since products and parts can be seen as waste, rather than valuable inputs in the refurbishing or remanufacturing process.
By keeping products, components or materials in a closed-loop supply chain as long as possible, refurbishment can benefit the environment through fewer need of raw materials and reduced energy usage and emissions. Next to environmental benefits, there is also huge economic potential. Second-hand business can deliver a strategic advantage, increased market share, higher profit margins and an enhanced customer perception as an environmentally responsible manufacturer.
The organizational implications of successful refurbishment
Despite the business potential of refurbishment, its success is depending on critical organizational ele-ments. De Jong adds: “People, processes, in-depth market knowledge, pricing and management focus are fundamental for accomplishing good quality refurbishment business. Once the foundation has been set, leasing can be an enabler of the refurbishment process by creating a steady and predictable flow of returned assets. It also enables manufacturers to keep grip on their assets and optimize the asset value through multiple life cycles.”
To download the whitepaper ‘Refurbishment: the road to success’, click here. Available in English.