encory - the spearhead of bmw‘s core management and ......encory - the spearhead of bmw‘s core...
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Encory - The Spearhead of BMW‘s Core
Management and Remanufacturing activities
APRA European Symposium 2018, April 19th
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2 | APRA European Symposium 2018 | 19. April 2018
Automotive OEMs face many challenges in aftersales
Remanufacturing as a key initiative to increase OEM after market exploitation
455€
870€
89%
3 years 7 years
37%
• 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
Millions of customers
Billions of euros
Strategic implications
Retention RateAvg. maintenance cost
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3 | APRA European Symposium 2018 | 19. April 2018
Encory has been set up by BMW as a 50:50 joint venture
with ALBA Group in September 2016
Nationality
German: 89%
Other: 11%
Average age of staff: 32,9
30-40: 47%
>50: 2%
40-50: 20%<30: 31%
Locations
Joint venture company
• High degree of entrepreneurial flexibility
• Fast implementation possible
• Separate IT infrastructure
• Defined interfaces with the BMW Group
HQ: Unterschleissheim (Munich)
UPB: Straubing
RLPs: Regensburg, Grevenbroich
RLP: Cabanillas (Madrid)
Q4
20
16
Q1
20
17
Q2
20
17
Q3
20
17
Q4
20
17
Q1
20
18
> 70 employees HQ + 200
at ReLife Points
Logistics & Sorting
Logistics & Sorting
Used Parts Sales 1
> 1000 dealers serviced
> 1,5 million parts handled
1 Used Parts are not sourced from dealer returns, but produced from dismantling cars >7years
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4 | APRA European Symposium 2018 | 19. April 2018
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
Used Parts
Business
Logistics &
Sorting
Supply with cores1 for remanufacturing
• 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
• Goal: Facilitation of return processes
and efficiency enhancements
• Result: Higher rates of core1 yields,
optimized material flow, increased
transparency, decreased error rates
and time savings for BMW dealers
1 A “core” is a defective part, which runs through an industrialized remanufacturing process to become a reman part.
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5 | APRA European Symposium 2018 | 19. April 2018
„Remanufacturing“ aims to build a wider portfolio of reman
parts for BMW dealers
1 A “defective part” is returned by the dealers, it is quality inspected following defined criteria, and is ideally classified as
“good core” for remanufacturing.
Remanufactured Diesel turbocharger
Remanufacturer: Turbomotors
Savings in production costs: up to 65%
„Remanufacturing“ stands for:
• Industrialized remanufacturing of
defective parts1 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
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:
Portfolio analysis
Definition and decision on
the portfolio of exchange
parts
Planning and coordination
of the roll-out
Set-up and implementation
Reman strategy and
concept definition
Competitive analysis &
benchmarking
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6 | APRA European Symposium 2018 | 19. April 2018
We are utilizing the OEM product data for our Core
Sorting Tool to identify Good Cores in our ReLife Points
1
Results guarantee maximized good core quota3
Good Core No BMW partBad Core ? clearing
Identification via product data continously
integrated in our software2 Visual inspection & checks
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7 | APRA European Symposium 2018 | 19. April 2018
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8 | APRA European Symposium 2018 | 19. April 2018
Combination of measures launched to push the Reman
strategy
Active marketing with focus on new remanufacturing
products concerning sustainability and pricing
Set-up of a competitive market oriented pricing strategy for
exchange parts
Definition of a profitable real Reman portfolio with focus on
cars in segment 2+
Set-up of competitive core charges to ensure the core return
Expansion of the strategic exchange parts portfolio
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9 | APRA European Symposium 2018 | 19. April 2018
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
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10 | APRA European Symposium 2018 | 19. April 2018
Encory business models
The Encory business models connect demand and supply
enabling suppliers to grow their OEM Reman business
Remanufacturing
Consulting
•
Logistics &
Sorting
Used Parts
Business
Cooperation with OES and
independent remanufacturers
Continuous expansion of our
supplier network
Development of new business fields
and reaching more customers
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Thanks for your attention!
Hanno Großeschmidt
Managing Director
Cell: +49 162 2973532
E-Mail: [email protected]
Web: www.encory.com