Going Global Remanufacturing Industries Council Roundtable April - - PowerPoint PPT Presentation

April 11, 2013

Going Global

Remanufacturing Industries Council Roundtable

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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

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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.

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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.

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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.

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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.