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Caterpillar Reman

As the world leader in remanufacturing, Caterpillar Reman is making progress possible finding new ways to reduce, reuse, recycle, and reclaim materials which once would have gone into a landfill. Cat Reman returns products at the end of their lives (called 'core') to same-as-new condition at a fraction of the cost of a new part. Through the remanufacturing process Caterpillar reduces waste, lowers greenhouse gas production and minimizes the need for raw materials.
Reman's model is an exchange business. It charges customers a price well below new for a Reman product, plus it charges a deposit. When customers return their used components (called "cores"), Reman refunds their deposit. Caterpillar uses a proprietary core management system to globally manage core returns from dealers and Caterpillar inspection facilities and determine the core credit amounts that will be refunded.

  • Website
  • Country: United States
  • Sectors:
    • Manufacturing
  • Maturity level: Established

Combined strategies

Circular Value Creation Strategies

  • Material Recycling
    Material Recycling

    The valorization of industrial production residues or materials from end of life products into the same or other production chains

  • Remanufacture
    Remanufacture

    Return product /component to original specifications (remanufacturing) or to satisfactory working conditions (refurbishment).

  • Optimal product use
    Optimal product use

    Decreasing the amount of products needed for delivering a given amount of value. This can be realized in several ways, e.g. by shared use, by extension of the product’s lifetime,...  

Value Proposition Strategies

  • Product Service System – product oriented
    Product Service System – product oriented

    Product-service system focused on the extension of services around a product (e.g. repair service, extended warranty,...).

  • Cost reduction
    Cost reduction

    Providing the customer with a cost reduction compared with BAU (e.g. shared use, avoiding waste handling fees, reducing resource consumption,…).

Value network strategies

  • Take back management
    Take back management

    Logistics  / establishing network collaboration for taking back end-of-life products from the customer, enabling the execution of a circular value creation strategy

  • Value chain collaboration
    Value chain collaboration

    Organisation in which the company effectively collaborates with customers and/or suppliers to create and capture value, going beyond the classical business model.