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Circular Economy Consulting

Remanufacturing as an economic business model

Reman is a profitable, structured business model—when implemented correctly. Working closely with your after-sales team, KBC Remanufacturing helps you develop a clear strategy, a market-driven parts portfolio, and defined core processes to build a financially sustainable business pillar. This results in business models that reduce your CO₂ emissions and tap into new sources of revenue. Learn how remanufacturing and other circular economy approaches can become a profitable pillar of your business.

Discuss the Project
Male, gray hair, blue eyes, neutral expression, wearing a white shirt and dark blue pants, standing with both hands in his pockets
Male, gray hair, blue eyes, neutral expression, wearing a white shirt and dark blue pants, standing with both hands in his pockets
Felix Feuerbach
Senior Partner
Male, gray hair, blue eyes, neutral expression, wearing a white shirt and dark blue pants, standing with both hands in his pockets
Male, gray hair, blue eyes, neutral expression, wearing a white shirt and dark blue pants, standing with both hands in his pockets

Your contact

Felix Feuerbach

Senior Partner at KBC and management consultant specializing in the circular economy, with over 14 years of experience in remanufacturing

Challenges in Remanufacturing and the Circular Economy

Remanufacturing has to be profitable. That’s exactly why we know what matters: For over ten years, KBC’s consulting team has been supporting major remanufacturing initiatives from the initial concept through to ongoing operations. We’re familiar with the typical challenges—whether organizational, financial, or market-related—because we’ve already encountered and resolved them in past projects. As a long-standing partner in a relatively small industry, we have a robust network spanning the entire value chain. 

This practical expertise is directly incorporated into your R project: remanufacturing, refurbishment, repair, or reuse.

The parts portfolio does not meet market needs

Your parts offering does not follow a remanufacturing strategy, fails to meet customer needs, or cannibalizes your new parts business.

Customers are leaving

Instead of retaining them with attractive after-sales offers, customers are turning to independent repair shops because of high parts prices.

Lack of follow-up processes, unclear role model

Remanufacturing projects fail because cross-functional tasks are not clearly defined and there is a lack of capacity.

No remanufacturing strategy, no market success

They are involved in remanufacturing but do not have a clear strategy. Without a suitable product portfolio, they will not achieve market success.

Sustainability goals are not being met in after-sales

Your service business is up and running, but you are not systematically leveraging the potential of remanufacturing to meet your sustainability goals.

Pathways to Cost-Effective Remanufacturing

Remanufacturing Strategy

A clear understanding of the market, competition, and economic viability is the starting point for any remanufacturing strategy. Together with your after-sales team, we analyze which segments of your aftermarket are being served by competitors because your prices are not competitive, which business models can emerge from remanufacturing, and how you can use remanufacturing to strengthen supply security or reduce the costs of technical service campaigns. Based on this, we determine what economic market potential is realistic and develop a pragmatic remanufacturing strategy that can be implemented operationally.

Define the parts portfolio

Not every component is suitable for remanufacturing. At KBC, our consulting team conducts a targeted analysis to determine which components are actually suitable and what the actual market demand is. Our goal is to create an attractive parts portfolio that is based on the real needs of the markets and the chosen strategy—not on current sales, revenue, and margins. This allows you to generate additional revenue and margins, avoid cannibalization with new parts, and achieve the goals set out in your strategy.

Implement core processes

Remanufacturing is an interdisciplinary field, which can pose challenges in terms of corporate policy: without clear lines of responsibility, friction arises and results fail to materialize. That is why, as part of our consulting services, we define the key core processes, clarify responsibilities, and establish functional structures. From organizational design to operational implementation, we support your company in ensuring that remanufacturing is not isolated within the after-sales division, but rather established as a controllable business model.

Remanufacturing by the Numbers

Cost of goods manufactured
Additional costs resulting from sustainability measures
Sales of replacement parts

This is how we view remanufacturing

If you implement remanufacturing correctly, you can reduce both your carbon footprint and your costs—that’s not a contradiction; that’s the goal.

Felix Feuerbach, Senior Partner at KBC

Industries we advise on the circular economy

Automotive

Industry & Mechanical Engineering

Technology

Topics that strengthen your business

Sales

After-sales

Innovation

Answers that advance Reman projects 

All
How quickly can remanufacturing pay off for my business?

Our projects have shown that a properly implemented Reman structure can be up and running and pay for itself within 8 to 12 months. However, what matters most to us is not just the timeframe, but our focus on cost-effectiveness.

How can I prevent Reman from becoming stagnant within the after-sales department?

Remanufacturing often fails not because of market conditions, but because of organizational issues. It is crucial not to treat this as an isolated issue within the after-sales department, but to integrate it across all departments. What this requires is a clear strategy, well-defined responsibilities, and a willingness on the part of management to actively drive the initiative forward.

Do we need our own production facilities for remanufacturing?

Not necessarily. Many companies launch remanufacturing initiatives through external partners—such as specialized remanufacturing facilities or suppliers that already have remanufacturing capabilities. Whether and when it makes sense to build an in-house capability depends on volume, the parts portfolio, and strategic priorities.

That is exactly what we will determine in the first phase of the project: What level of vertical integration makes economic sense? Who are the right partners in your (or our) network? And what approach will minimize the investment risk—without hindering future expansion?

Male, gray hair, blue eyes, neutral expression, wearing a white shirt and dark blue pants, standing with both hands in his pockets
Male, gray hair, blue eyes, neutral expression, wearing a white shirt and dark blue pants, standing with both hands in his pockets
Felix Feuerbach
Senior Partner

Talk to us

Whether it’s remanufacturing, innovation, or after-sales support: In a brief conversation, we’ll determine which steps make sense and how KBC—an international boutique consulting firm based in Munich—can help you move forward. We’ll get back to you shortly.

Discuss the project