Successful Core Management Webinar Indicator of Growing Industry

On Thursday, July 12, 2018, remanufacturing professionals and leaders gathered for the Remanufacturing Industries Council's (RIC) Core Management Webinar. Vaughn Henson, General Manager at SRC Logistics and RIC Vice Chairman, led the discussion about systematic approaches to core management and simplifying its complex nature through transparency and consolidation.

Participating in the webinar were more than 100 representatives from multinational industry leaders in the agriculture, automotive, construction, technology, locomotive, furniture, appliances and heavy duty remanufacturing sectors – more than tripling the attendance of past RIC webinars. Where does this record interest come from? Firstly, as arguably the most crucial component of remanufacturing, core management poses a critical challenge for all industry sectors. Henson suggests there is more to it than that. 

"It’s clear that regardless of the industry or reman product, companies realize the necessity of having an effective core management process. I was glad to see attendees from multiple countries and industries doing their homework on core management, said Henson, "We’ve seen growing interest in our IT system RLMS®, which offers a systematic approach to collecting, tracking and inspecting core." 

SRC Logistics, an industry leader in core management and supply chain services, manages over 3 million pieces of core annually. In the past 18 months alone, its associates have experienced 30% growth in orders from their agriculture, construction and highway equipment OEMs. Henson hopes more producers and consumers are seeing the benefits of remanufacturing.

SAME QUALITY AT A BETTER PRICE

Remanufactured goods are taking consumers by surprise for not only their 30-50% reduced price tag over a new good, but also for their like-new or better-than-new quality. Parts, components and whole goods are remanufactured to their original equipment manufacturer's (OEM) specifications and have similar, comprehensive warranties to new goods. Often times, a remanufactured product will have higher quality standards than it did it its first life due to updated safety and quality specifications by the OEMs.

SUSTAINABILITY & ENVIRONMENTAL PRACTICES

In the age of socially and environmentally conscious consumers and producers, remanufacturing serves a purpose far beyond quality. On average, remanufacturing saves 85% of energy, water and material use compared to new goods. During the disassembly and inspection processes of core coming into remanufacturing facilities, unusable parts and components are scrapped and recycled. In Springfield, Missouri, an average of 200 million pounds of materials are saved annually from landfills by John Deere Reman, CNH Industrial Reman and SRC Holdings and its subsidiaries– 3 of the largest remanufacturers in southwest Missouri.

JOB CREATION

The demand for remanufactured goods has given rise to an increased demand for skilled, technical workers. In 2012, an estimated 180,000 full-time jobs were supported by remanufacturing in the United States, and that number has been estimated to have grown significantly. This workforce demand has been so significant that community colleges and technical institutions have begun programs specifically for remanufacturing like Ozarks Technical Community College's new Industrial Engineering Technology apprenticeship program. Institutions like these fill the need for ongoing education and training, which is typically funded by the remanufacturing firms and offered as benefit to attract and retain workers. Finding qualified, skilled workers will continue to be a challenge in meeting the rising demand for remanufactured products.   

Missed the webinar? Watch the replay here!

Sources: Remanufacturing Industries Council, SRC Logistics, Inc., SRC Holdings Corporation