Both demonstrators have challenged the status quo of their respective sectors. A fully-functioning pay-per-use offer by a major Original Equipment Manufacturer (OEM) with a clear strategy and capability to use the appliances for multiple life cycles is unique in the current linear economy. A well-designed business strategy that includes appliances that are built to last (15,000 cycles appliances vs 2500 cycles regular domestic appliances), integrated sensors that can monitor the usage data, operating conditions in real-time and IoT platform that connects OEM, customers and 3rd party service providers and refurbishment of the appliances are several puzzles in the transition to CMS. The White Goods demonstrator through the ReCiPSS project has shown how a successful transition can take place in a traditional sector that has operated for many decades in a linear system. The demonstrator is expected to generate revenue of approximately €91,700 – 147,800 per year and €65,600,000 – 105,700,000 per year if scaled up. Similarly, the demonstrator is expected to save 4 ton CO2 eq. in the demonstration phase with the potential to save 2,941 tons CO2 eq., if scaled up.
Similarly, the ‘core management-as-service’ offering that includes both digital and physical services is a breakthrough for the traditional reman business in the automotive sectors. Separating the economic incentive from the physical item, the possibility to bypass the trade levels in core transportation, single point core selections and a one-stop information management platform to collect all reman criteria by major Original Equipment Suppliers (OES) may sound trivial. These innovations have, in fact, changed the rules of the game of the automotive remanufacturing sector. All these innovations are made part of the automotive part data platform that is developed in the ReCiPSS project. The platform has enabled options tradeable among stakeholders opening up possibilities to source cores from the open market. Furthermore, the information regarding available options and the date of expiry has significantly reduced the financial risks for the wholesalers. Single-point core selection has reduced the core rejection rate significantly and eased the process of the payment of a surcharge to the right stakeholders at the right time. The single-point core selection also means better bundling of cores and the possibility to transport cores directly from the workshops, resulting in efficient logistics. All in all this has improved the quality, quantity and timing of core return to enable CMS.
The demonstrator has shown that a saving of approx. 70 % in transport costs per core can be achieved through efficient core selection and better bundling. This has led to cost savings of up to €500,000 during the demonstration phase which could be projected to €180,000,000 per year if scaled up. The demonstrator has also shown savings in CO2 emissions of up to 390 tons CO2 eq. during the demonstrator phase and 138,000 tons CO2 eq. per year if scaled up.
