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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
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Sectors:
- Manufacturing
- Maturity level: Established
Explore the Archetypes linked to this case
Combined strategies
Circular Value Creation Strategies
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Material Recycling
Material Recycling
The valorization of industrial production residues or materials from end of life products into the same or other production chains
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Remanufacture
Remanufacture
Return product /component to original specifications (remanufacturing) or to satisfactory working conditions (refurbishment).
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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
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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,...).
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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
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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
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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.