VOL 37, NO.2 WINTER 1995 | Martijn Thierry, Marc Salomon, Jo Van Nunen, Luk Van Wassenhove
The chapter discusses the strategic issues in product recovery management (PRM), which involves managing used and discarded products, components, and materials to recover economic and ecological value. Traditionally, manufacturers ignored used products, but today, customer and regulatory pressures demand more sustainable practices. PRM options include repair, refurbishing, remanufacturing, cannibalization, and recycling, each with different levels of disassembly and reuse. The chapter highlights the importance of acquiring accurate information on product characteristics, supply, demand, and environmental impact. It also emphasizes the need for collaboration with suppliers, repair centers, and waste management companies. Case studies of BMW and IBM illustrate how these companies have implemented PRM strategies, including design for disassembly, standardization, and modular design. The chapter concludes by discussing the managerial implications of PRM, such as the need for new information systems, cooperation, and strategic changes in production and logistics.The chapter discusses the strategic issues in product recovery management (PRM), which involves managing used and discarded products, components, and materials to recover economic and ecological value. Traditionally, manufacturers ignored used products, but today, customer and regulatory pressures demand more sustainable practices. PRM options include repair, refurbishing, remanufacturing, cannibalization, and recycling, each with different levels of disassembly and reuse. The chapter highlights the importance of acquiring accurate information on product characteristics, supply, demand, and environmental impact. It also emphasizes the need for collaboration with suppliers, repair centers, and waste management companies. Case studies of BMW and IBM illustrate how these companies have implemented PRM strategies, including design for disassembly, standardization, and modular design. The chapter concludes by discussing the managerial implications of PRM, such as the need for new information systems, cooperation, and strategic changes in production and logistics.