Encory - The Spearhead of BMW‘s Core Management and ......Encory - The Spearhead of BMW‘s Core...
Transcript of Encory - The Spearhead of BMW‘s Core Management and ......Encory - The Spearhead of BMW‘s Core...
Encory - The Spearhead of BMW‘s Core
Management and Remanufacturing activities
APRA European Symposium 2018, April 19th
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
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
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.
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
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
7 | APRA European Symposium 2018 | 19. April 2018
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
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
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
Thanks for your attention!
Hanno Großeschmidt
Managing Director
Cell: +49 162 2973532
E-Mail: [email protected]
Web: www.encory.com