Produced in a factory setting and utilizing a standardized industrial process, remanufactured parts are returned to same-as-new (or better) condition and performance, and carry warranties similar to that of new replacement parts.

A simple solution to increase margins without sacrificing quality

July 11, 2016
Remanufactured parts can be a simple solution for diverse repair and maintenance needs.

Successful companies look for ways to decrease operating expenses while maintaining, or improving, the quality of their products or services. However, this can be difficult to deliver because the old idiom, “You get what you pay for,” often applies.

Simple solutions that offer great value can be the answer for companies seeking to realize an increase in customer attraction while improving bottom-line results.

When it comes to fleet maintenance, remanufactured (or reman) parts can be a simple solution for diverse repair and maintenance needs. Because they are produced in a factory setting and utilize a standardized industrial process, remanufactured parts are returned to same-as-new (or better) condition and performance, and they carry warranties similar to that of new replacement parts.

Additionally, remanufactured parts incorporate engineering, quality and testing standards, but they cost only 70 percent, on average, as compared to new parts.

Effective fleets looking to take advantage of these inherent cost savings – while preserving their reputation for reliability and exceptional service – should look to reman for their supply chain needs first. Savvy fleet businesses can then price their services to deliver favorable margins, all without compromising quality or customer expectations.

Reduce Downtime and Comebacks

The availability of quality remanufactured parts can help fleets reduce both downtime and comebacks, which is crucial for not only effective maintenance scheduling, but also can help increase technician proficiency and customer satisfaction. The use of remanufactured parts can help a fleet do the job right, the first time, on time.

What many fleets may not know is that numerous remanufacturing companies – if not all original equipment suppliers – are fully authorized by OE manufacturers to remanufacture and service their parts.

For instance, TransAxle (www.transaxle.com) – a premier supplier of remanufactured transmissions, axles and hydraulic components – sells Allison Transmissions that are remanufactured in TransAxle’s Allison-authorized facility (www.allisontransmission.com). TransAxle products are also authorized by Eaton (www.eaton.com) and others to perform work that will meet or exceed original specifications. This recognition allows TransAxle to offer some of the best warranties in the business.

The producers of remanufactured parts stand behind their work. With a reman part, customers can be assured that the part has like-new quality, performance and warranty coverage, offering peace of mind should any problems arise. In essence, a reman part offers the same benefits of a new replacement part, but it does so at a lower cost.

It is always important to know the quality of your parts, because it is essential for fleet maintenance managers and technicians to protect their own reputations for high-quality work.

Approved Quality

Through the leadership of MERA, the remanufacturing industry received further distinction in October 2015 when President Obama signed S. 565, Federal Vehicle Repair Cost Savings Act of 2015. It required federal agencies to prioritize the use of remanufactured parts when servicing the federal civilian vehicle fleet.

In addition, Michigan, Connecticut and several other states have introduced, or signed into law, legislation similar to these federal guidelines for their statewide fleets.

Even though remanufactured parts are qualified and vetted by the federal government, many fleets, when looking to source reman parts for their own needs, still need to know the names of quality suppliers. As an industry resource, MERA can help identify the reputable companies – each of which is peer-reviewed before membership approval – that produce high quality remanufactured parts.

Fleets looking to learn more about remanufactured parts are encouraged to contact MERA.

Growth through Sustainability

Fleets using remanufactured parts are also investing in a sustainable future – whether it be for manufacturing jobs, where most remanufacturing is done locally, or the circular economy, by reducing waste and recycling key natural resources. By making remanufactured parts a primary supply source, fleets offer like-new performance and economical pricing, as well as market their company as a sustainable operation. Reman then becomes a means to attract new customers.

Depending on their business operations, medium and heavy duty fleets cite their use of reman parts when seeking ISO 14001 certification (environmental management systems). As end-users, fleets looking to become sustainable through remanufactured parts implementation can take comfort in the fact that many of their up-stream parts suppliers have achieved certification.

For example, Bendix Commercial Vehicle Systems (www.bendix.com) – a supplier of remanufactured brake shoes, valves, air dryers, compressors and electronics for nearly four decades – maintains ISO 14001 certification for each of its manufacturing facilities.

By being held to higher industry environmental standards, remanufactured parts are a sound choice both economically and environmentally.

The Reman Solution

Fleets that mandate the purchase of remanufactured parts as the primary replacement and repair option for their vehicles can deliver exceptional quality to their customers. Fleets also can meet their financial goals by using reman to increase their operating margins and achieve favorable business outcomes. Furthermore, fleets can market to customers invested in sustainability and the circular economy.

Put it all together and one can see how remanufacturing is a simple solution.

John Chalifoux, is president and chief operating officer of the Motor & Equipment Remanufacturers Association (MERA), the industry association for remanufacturers that produce parts that are “Manufactured Again” (www.mera.org). MERA is the remanufacturing and sustainability division of the Motor & Equipment Manufacturers Association (www.mema.org) MEMA, which has been advocating on behalf of the motor vehicle supplier industry since 1904.

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