Remanufacturing for the automotive aftermarket-strategic factors: literature review and future research needs

While the concepts of remanufacturing and reverse logistics are gaining popularity in practice, the available literature and theory on strategic decision making in these areas are limited. This paper is designed to address this gap, in particular, for the automotive industry aftermarket. In doing so, the authors reviewed literature pertaining to: customer demand(s), product design and development, cost-benefit analysis of reman, core (i.e., used product) supply management, reman competencies and skills, product life cycle strategies, reman and reverse logistics network design, relationships among key stakeholders, environmental considerations, regulations, and impact of emerging economies. The literature findings along with our experience in working with automotive reman products were used as inputs to guide the formulation of seven major propositions for the strategic factors in decision making within reman. The propositions were then tested through a case study. The case study reconfirmed many of the factors like product life cycle, regulations, etc. from the literature review and also identified new factors like OE customer requirements. Our results provide a foundation for further research for companies that deal with Original Equipment (OE) Sales, Original Equipment Service (OES), as well as Independent Aftermarket (IAM) business in the automotive industry.