Going Global Remanufacturing Industries Council Roundtable April 11, 2013
2 | RIC Roundtable | April 11, 2013
John Deere Reman • US/CA based Reman operations • Reman distributed through John Deere World Wide Parts network • Dedicated Reman marketing: • US, CA, EU, RU, Aus • Core Centers: • US, CA, EU, RU, Mex • ~20% of Reman sales outside of US/CA 3 | RIC Roundtable | April 11, 2013
Global reman market development • Understand the local laws, regulations, and perceptions. • Begin with imported reman products. • Develop dealer and customer value proposition for reman. • Develop Core Return processes. 4 | RIC Roundtable | April 11, 2013
Brazil: No success, yet! What’s going good • Reman value proposition: Commercial operations desire the fast repair response to improve uptime. Challenges • Minimal knowledge of Reman within John Deere Brazil. • Barriers to entry – approval process is exhaustive. 5 | RIC Roundtable | April 11, 2013
Australia: Great success! What’s going good • Minimal customs challenges. • Excellent in-country logistics for core return. • Knowledgeable local John Deere leaders. • High customer awareness of reman from other industry segments. • Multiple years of triple digit growth. Challenges • High inventories required to support long supply chain and early market development. 6 | RIC Roundtable | April 11, 2013
Russia: The path to success in full view! What’s going good • Knowledgeable JD Reman local leaders. • Reman value proposition: Dealers and customers hungry for lower price point. • Multiple years of triple digit growth. Challenges • Customers uncomfortable giving up their cores. • Requires commercial contract to buy cores from dealers. • Low core return rates. • Engine serial number tracking on machine registration. 7 | RIC Roundtable | April 11, 2013
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