Report on the remanufacturing of refrigerated display cabinets

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©Centre for Remanufacturing & Reuse 2009 Places the emphasis of cost reduction (and therefore increased remanufacture) on the remanufacturer. Enables the remanufacturer to be cost competitive even with poor quality new RDCs. Simplifies the purchasing decision, encouraging more trade with the retailer. There are, however some disadvantages: The retailer has a more complicated working relationship. Some infrastructural changes may be required of the retailer. Significant change may be required of the remanufacturer‟s business model. There is an increase in the capital expenditure for the remanufacturer. Overall however, such a change in business model may lead to more and repeat business with retailers. Page 34 of 38
©Centre for Remanufacturing & Reuse 2009 5 Conclusions and way forward RDCs are ideally suited to remanufacture and can be upgraded to meet current energy efficiency specifications. Most of the carbon footprint of the RDC is derived from its use phase. If the RDC can be remanufactured so that its energy efficiency matches that of the latest designs, the remanufactured RDC saves 2,100 kg of CO 2 e. Based on our estimates of the annual number of RDC replacements, if remanufacturing became prevalent throughout the entire retail sector, the industry could prevent the generation of approximately 144,000 tonnes of CO 2 e per year, which is equivalent to the average emissions generated annually by around 50,000 cars. There is an appetite within certain retailers in the UK to use remanufactured RDCs. The main reason retailers use remanufactured RDC is to reduce costs At present the environmental advantages of using RDCs are not a major consideration. Other advantages from the retailer‟s perspective include the ability to perform energy efficiency upgrades at a reduced cost, and to enable specified customisations which enhance the retail brand. Several factors are preventing growth of remanufacturing in the RDC market: The use of low-cost imports has eroded but not eliminated the cost advantage of remanufactured RDCs. A poor reputation, largely earned through disreputable dealers, makes selling remanufactured RDCs more difficult, with remanufacturers often relying on their reputation with individuals within the buying departments of retailers to make sales. A whole life cycle view which can be an incentive to value the longevity of the products is largely absent. However, purchasing structures within retailers frequently favour a „cheapest is best‟ choice. This is despite the fact that the cheapest new RDCs can fail prematurely and are of such poor build quality that they are unsuitable for subsequent remanufacture. The current taxation regime encourages users to buy the most efficient RDC, but only apply to new purchases. There are three general recommendations to increase the level of remanufacturing: Engage and educate retailers on the benefits of remanufacturing. Page 35 of 38
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Report on the remanufacturing of refrigerated display cabinets

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