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Report on the remanufacturing of refrigerated display cabinets

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©Centre for Remanufacturing & Reuse 2009<br />

procedures may be prudent to determine if, as reported through interviews, <strong>the</strong>re<br />

is a disparity between <strong>the</strong> claimed efficiency ratings <strong>of</strong> some new RDCs and <strong>the</strong>ir<br />

actual performance. Based <strong>on</strong> <strong>the</strong>se findings, it may be necessary for <strong>the</strong> RDC<br />

industry to adopt a set <strong>of</strong> transparent standards or protocols to address this<br />

problem.<br />

Form alliances between OEMs and remanufacturers<br />

The size <strong>of</strong> order that a remanufacturer is able to fulfil is limited to <strong>the</strong> amount <strong>of</strong><br />

suitable end <strong>of</strong> life RDCs available to <strong>the</strong>m. Ultimately, remanufacturers are<br />

reliant <strong>on</strong> five year old purchasing to enable <strong>the</strong>m to effectively remanufacture<br />

RDCs. If <strong>the</strong> cases purchased are unsuitable for remanufacture <strong>the</strong>n <strong>the</strong><br />

remanufacturer cannot compete for business. A potential soluti<strong>on</strong> to this would<br />

be through <strong>the</strong> formati<strong>on</strong> <strong>of</strong> a strategic partnership with an OEM. This could have<br />

benefits for both parties. The remanufacturer would be able to bid for orders<br />

which <strong>the</strong>y could not normally complete through <strong>remanufacturing</strong> al<strong>on</strong>e, and <strong>the</strong><br />

OEM will find ano<strong>the</strong>r outlet for <strong>the</strong>ir product. Although this may result in <strong>the</strong><br />

OEM losing sales to remanufactured product, it also makes any bid more<br />

attractive due to <strong>the</strong> lower costs <strong>of</strong> <strong>the</strong> (cheaper) remanufactured RDCs as part <strong>of</strong><br />

a larger bid package for <strong>the</strong> retailer. In additi<strong>on</strong>, any orders which require <strong>the</strong><br />

OEM to remanufacture units with which <strong>the</strong>y are unfamiliar can be placed through<br />

<strong>the</strong> third party remanufacturer.<br />

Deliver industry-wide changes through a trade organisati<strong>on</strong><br />

Although <strong>the</strong> interests <strong>of</strong> <strong>the</strong> RDC industry are represented by The Federati<strong>on</strong> <strong>of</strong><br />

Envir<strong>on</strong>mental Trade Associati<strong>on</strong>s (FETA) and <strong>the</strong> British Refrigerati<strong>on</strong><br />

Associati<strong>on</strong> (BRA), <strong>the</strong>re have been c<strong>on</strong>cerns that <strong>the</strong> viewpoints <strong>of</strong><br />

remanufacturers are under-represented. By developing a subcommittee within<br />

<strong>on</strong>e <strong>of</strong> <strong>the</strong>se trade bodies, <strong>the</strong> c<strong>on</strong>cerns and priories <strong>of</strong> <strong>the</strong> <strong>remanufacturing</strong><br />

industry within <strong>the</strong> UK could be addressed.<br />

Developing and delivering industry reform through a trade associati<strong>on</strong> is likely to<br />

yield results faster than through direct governmental lobbying. Areas where<br />

industry collaborati<strong>on</strong> could result in higher levels <strong>of</strong> <strong>remanufacturing</strong> include:<br />

Adopt an industry wide standard <strong>on</strong> <strong>the</strong> quality <strong>of</strong> new RDCs, for example<br />

specifying <strong>the</strong> use <strong>of</strong> stainless steel bases to aid <strong>the</strong> <strong>remanufacturing</strong><br />

process.<br />

Develop an industry recognised code <strong>of</strong> practice for <strong>remanufacturing</strong> to<br />

ensure quality and comparability, and hence reduce <strong>the</strong> risk <strong>of</strong> purchase<br />

for <strong>the</strong> retailer.<br />

Promote <strong>the</strong> envir<strong>on</strong>mental benefits <strong>of</strong> <strong>remanufacturing</strong> to retailers and<br />

government, taking a more structured, quantified and targeted approach.<br />

Page 32 <strong>of</strong> 38

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