Lower Costs, Higher Profits
ERC offers services that will help customers manage their life cycle needs of a part from start of production (SOP) to end of life (EOL).
Early lifecycle objectives are to minimize warranty costs and collect and control cores.
Minimize Warranty Expense
- Utilize Lowest Standard Cost Product
- New Exchange or Remanufactured
- Price Parts for Warranty Cost Containment
- Require the Use of Reman Parts In Warranty
Collect and Control Cores
- Core Deposit on All Target Reman Parts
- Establish Exchange Parts at Time Of Part Set Up
- Establish Core Eligibility and “Sunset” Policies
- Begin Remanufacturing Process Development
The mid to late lifecycle objectives are to maximize market share, offer a competitive cost of ownership, and to maximize profits.
Maximize Market Share
- Aftermarket Exclusivity Implemented
- Establish Dominant Position in Aftermarket
- Continue to Aggressively Control Cores
- Closely Monitor Competitor Actions
Achieve Competitive Cost of Ownership
- Value Creation of Reman Allows Competitive Position
- Benchmark Basket of Reman Products
- Promote Value Message in Marketplace
Maximize Profit
- Reduce Cost of Remanufacture
- Source Components Directly from Tier 2 and Aftermarket Vendors
- Continually Develop New Salvage Processes
