Smart core management can yield a profitable reman business

Quality remanufactured heavy-duty truck parts often provide performance capabilities equivalent to genuine aftermarket parts at a fraction of the price and are available for some of the most common wear parts on today’s heavy-duty trucks. For many independent aftermarket distributors and repair companies, this presents an opportunity to embrace remanufacturing as a significant source of revenue—if they apply smart core management. 

This is now easier to do for two reasons:

1. Parts remanufacturers have become increasingly transparent in providing aftermarket distribution and service companies with detailed acceptance criteria for core returns
2. AutoPower’s Service and Reman solution dramatically simplifies core management to enable companies to meet the acceptance and reimbursement criteria.

The compliance challenge:

While cores represent an attractive source of additional revenues, they must meet a range of acceptance criteria to qualify for a full refund when returned to a remanufacturer. Criteria vary based on parts categories and manufacturers, but typically include:

• Complete and fully assembled with all necessary components
• No excessive wear and tear beyond normal usage
• No non-operational damage due to mishandling, excessive rust, corrosion, fire, or improper storage
• Part number must match the part number of the replacement part being purchased

Turning cores into profits:

Incorporating nearly a half century of knowledge from helping independent HD distributors and service companies, AutoPower’s solution most notably provides visibility and oversight of a company’s reman business performance, ranging from core disassembly to employee labor. The feature addresses the most common HD units and assemblies, including engines, transmissions, axle carriers, pumps, differentials, and power take-offs. Work orders include a complete bill of materials, sub- and intermediate assemblies, components, parts, quantities and labor required.

Core Management Capabilities:

• Core eligibility terms by customer
• Mapping of core part numbers to reman part numbers
• Outbound and inbound core tracking (customers and suppliers)
• Core charge invoicing
• Core returns and credits
• Tracking of cores in finished goods
• Financial core reporting

Assembly Rebuild Capabilities:

• Bill of materials (BOM) creation:
  • Identify cores
  • Calculate cost of enhancements
  • Account for kits, assemblies, parts
• Disassembly bill of materials and work orders:
  • Estimate yield of parts and cores into inventory
  • Include disassembly labor
• Work order and material planning:
  • Locate cores
  • Establish required components
  • Estimate labor
  • Provide quotes

By infusing key business processes, labor workflow, sound financial functionality and more, AutoPower transforms core management—traditionally regarded as a burden—into a sustainable profit center.