Encory - The Spearhead of BMW s Core Management and Remanufacturing activities. APRA European Symposium 2018, April 19th

Transcription

1 Encory - The Spearhead of BMW s Core Management and Remanufacturing activities APRA European Symposium 2018, April 19th

2 Automotive OEMs face many challenges in aftersales 3 years 7 years 89% Millions of customers Billions of euros 37% Avg. maintenance cost Retention Rate Strategic implications Regain of market shares in aftersales Increasing customer retention and dealer loyalty Focus on As good as new quality for reman parts Use reman cost savings to increase margin 2 APRA European Symposium April 2018 Remanufacturing as a key initiative to increase OEM after market exploitation

3 Q Q Q Q Q Q Encory has been set up by BMW as a 50:50 joint venture with ALBA Group in September 2016 Joint venture company Logistics & Sorting Used Parts Sales 1 Logistics & Sorting > 1,5 million parts handled > 1000 dealers serviced High degree of entrepreneurial flexibility Fast implementation possible Separate IT infrastructure > 70 employees HQ at ReLife Points Defined interfaces with the BMW Group Average age of staff: 32,9 >50: 2% 40-50: 20% <30: 31% 30-40: 47% German: 89% Nationality Other: 11% Locations HQ: Unterschleissheim (Munich) UPB: Straubing RLPs: Regensburg, Grevenbroich RLP: Cabanillas (Madrid) 3 APRA European Symposium April Used Parts are not sourced from dealer returns, but produced from dismantling cars >7years

4 Our portfolio spreads across three business models Remanufacturing Consulting Goal: Wider portfolio of remanufactured parts for dealers Result: Reman product offer for older cars with attractive prices, contribution to sustainability, improved use of raw materials Logistics & Sorting Goal: Facilitation of return processes and efficiency enhancements Result: Higher rates of core 1 yields, optimized material flow, increased transparency, decreased error rates and time savings for BMW dealers Used Parts Business Goal: Reliable supply of original used parts to the BMW Group dealerships Result: Increase of the customer retention of older car segments within the dealerships of the BMW Group Supply with cores 1 for remanufacturing 4 APRA European Symposium April A core is a defective part, which runs through an industrialized remanufacturing process to become a reman part.

5 Remanufacturing aims to build a wider portfolio of reman parts for BMW dealers Remanufacturing stands for: Industrialized remanufacturing of defective parts 1 processed up to the quality standards of new parts Significant energy and cost savings in the production process compared to the production of new parts Potential to reduce acquisition prices and warranty-related costs Remanufactured Diesel turbocharger Remanufacturer: Turbomotors Savings in production costs: up to 65% Results and advantages: Analysis of the competitors and of the portfolio Development of market-driven product strategies Definition and extension of the portfolio of Reman parts Identification and classification of potential suppliers to guarantee the OEM quality level As a result, BMW Group offers an extended customer retention solution for dealers thanks to a portfolio of reman parts End-to-end solution for reman projects Reman-Consulting process: Competitive analysis & benchmarking Portfolio analysis Reman strategy and concept definition Definition and decision on the portfolio of exchange parts Planning and coordination of the roll-out Set-up and implementation 5 APRA European Symposium April A defective part is returned by the dealers, it is quality inspected following defined criteria, and is ideally classified as good core for remanufacturing.

6 We are utilizing the OEM product data for our Core Sorting Tool to identify Good Cores in our ReLife Points 1 Identification via product data continously integrated in our software 2 Visual inspection & checks 3 Results guarantee maximized good core quota Good Core Bad Core No BMW part? clearing 6 APRA European Symposium April 2018

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8 Combination of measures launched to push the Reman strategy Expansion of the strategic exchange parts portfolio Set-up of competitive core charges to ensure the core return Definition of a profitable real Reman portfolio with focus on cars in segment 2+ Set-up of a competitive market oriented pricing strategy for exchange parts Active marketing with focus on new remanufacturing products concerning sustainability and pricing 8 APRA European Symposium April 2018

9 Cooperation with suppliers is the key to success Delivering reman parts in highest quality (comparable to serial quality) Focus on cooperation with OES advantages in sourcing, testing & validation Regarding Independent remanufacturers as alternative to exploit cost saving potential Encory is the interface between OEM and OES and a guarantor for certified high quality standards 9 APRA European Symposium April 2018

10 The Encory business models connect demand and supply enabling suppliers to grow their OEM Reman business Cooperation with OES and independent remanufacturers Continuous expansion of our supplier network Remanufacturing Consulting Logistics & Sorting Development of new business fields and reaching more customers Used Parts Business Encory business models 10 APRA European Symposium April 2018

11 Thanks for your attention! Hanno Großeschmidt Managing Director Cell: Web: