Creating Sustainable Value through Remanufacturing: Three Industry Cases

Remanufacturing is proposed as a strategy to develop circular business models to manage resource loops in the future circular economy (CE). If remanufacturing is to occupy a central role in the CE it needs to be considered from a series of complementary and synchronous business activities. Thus, the aim of this article is to investigate how such an integrated perspective can drive sustainable value creation within the context of remanufacturing business models. This is explored through three business cases: Philips Healthcare Refurbished Systems, Siemens Wind Power, and Orangebox. This ‘integrated view’ considers remanufacturing activities according to: product design and development; remanufacturing processes; value chain design and management; and marketing and consumer/user relationship. The research question asks, ‘Can an integrated perspective drive sustainable value creation in remanufacturing contexts?’ To answer this, the research maps a set of triple-bottom-line indicators across the chosen cases. The work contributes to the field by mapping a set of business mechanisms (e.g. warranties, service approaches, partnerships) that can be utilised to co-develop necessary activities in unison for a successful remanufacturing approach. In certain cases, remanufacturing has the potential to add to the triple-bottom-line through such an integrated approach. However, each of the firms are investing in remanufacturing predominantly for profitability and market protection measures and therefore environmental and social components of the triple-bottom-line must be proactively considered.