Luk Van Wassenhove
Emeritus Professor of Technology and Operations Management
Visiting Professor of Technology and Operations Management at INSEAD
Remanufacturing; Value Added; Original Equipment Manufacturers; Perceived Benefit; Product Recovery; Product Life Cycle;
The article discusses the remanufacturing process, the value added aspect of remanufacturing to original equipment manufacturers (OEM), and the customer's perceived value of remanufactured products.The idea that remanufactured product sales can reduce or eliminate new product sales is discussed. The differences between remanufactured products and low-end new products are noted. Product life cycle and market cannibalization or loss of market share are mentioned.Examples are given of profitable product recovery strategies used by the four OEM companies Alpha Equipment, Xerox, Robert Bosch Tool, and Hewlett-Packard.