Developing a remanufacturing supply chain management system: a case of a successful truck engine remanufacturer in China

Abstract

With the yearly increase in end-of-life products, remanufacturing has been recognised as an effective approach to alleviate resource scarcity in China. However, uncertainties exist through a whole remanufacturing supply chain management (RSCM) system, especially for the supply of used products and the demand of remanufactured products. Such uncertainties bring big challenges for a remanufacturer to manage its supply chains. SINOTRUCK Jinan Fuqiang Power Co., Ltd. (JFP), the only one member of Production Engine Remanufacturers Association (PERA) in Asia, has produced remanufactured engines and parts for more than two decades. This paper describes the JFP and its RSCM system. After summarising experiences of JFP’s remanufacturing practices, the paper analyses challenges and then introduces possible solutions. The results show that JFP should make efforts in three areas which are (1) continuous technology development, (2) improvement of the RSCM system and (3) advertising and the continuous technology development is the core competitive factor for JFP.

Keywords:

• Remanufacturing supply chain management
• remanufactured engines
• reverse logistics
• SINOTRUCK Jinan Fuqiang Power Co., Ltd

Funding

This work is supported by the National Key Basic Research Program of China (973 Program) [grant number 2011cb013406]; the National Science Fund for Distinguished Young Scholars [grant number 71025002]; the National Natural Science Foundation of China Projects [grant number 71472021, 71402016]; the Major Program of the National Social Science Fund of China [grant number 13&ZD147].