Market Demands Reman

October 1, 2009 07:00 PM
 

When equipment breaks down, as it always does, it's important to be able to get quality parts from your dealer quickly and get back to field work. Now, farmers have more options through their Case IH and New Holland dealers with CNH Reman.

CNH Global, parent company of Case IH and New Holland, has formed a full-scale remanufacturing operation and services company—called CNH Reman—through a joint venture with Springfield ReManufacturing Corp. (SRC). The SRC facility, located in Springfield, Mo., has been a supplier for CNH for 26 years.

Eric Bippus, vice president of sales and marketing for CNH Parts & Service, says offering customers remanufacturing options in this economy is critical to growing the business.

In a two-year research effort, CNH found the main influencer on end-user (farmer) parts purchase decisions is finding OEM-grade quality products, whether new or remanufactured, readily available in or near one's local dealership. Ag customers responded with 57% confidence that remanufactured products are as good as new.

CNH Reman offers lower-cost replacement parts for consumers and dealers and includes the latest changes and upgrades to OEM specifications.

"[Reman] is a big deal for us,” says Ron Hendershot of Hendershot Equipment Company, Stephenville and Decatur, Texas. "Everything breaks down. If we can get the customer going faster at a fair price, that is the ultimate goal. Because breakdowns cost more and more the more downtime farmers have.”

Remanufactured parts can often be 20% to 40% or even 50% lower in cost than new parts, he adds.

Hendershot says remanufactured parts are good for the dealer, as well. "We buy the remanufactured part, slip it into the shop, it cuts the hours for the customer and gets him going faster than if we redid it in the shop.”

Plus, CNH, rather than the individual dealership, will take on the warranty responsibility of the remanufactured parts.

Block by block. Focusing on the customer, whether dealer or farmer, is key for CNH Reman.

"If we listen to our customers, we can triple this business in five years,” says Jack Stack, president and CEO of SRC.

To achieve that, Stack explains, CNH Reman will put the 33 supply chains in the marketplace together under one roof and get the rotating hydraulics division online.

A closer relationship between engineers and dealers is also needed. "We're looking to have a staff of six to seven parts specialists here, basically set up into territories, and they will be consistent in building relationships. We really think that the success of this thing is the relationship building that we can have,” Stack says.

After rotating electrical and hydraulics are under one roof, Stack says, the company will move the heavy equipment—engines, transmissions and drivetrains—that support CNH products. Finally, CNH Reman will focus on engine components, such as fuel systems and turbochargers.

At the center of the facility is the technical call center, operating since March, which is staffed to handle 300 calls per day, Stack says.

"The idea is to create a company that brings the whole organization together,” he explains. "If we can bring manufacturing, remanufacturing, engineering and the ability to have training centers together, we can build a dynamic organization.”


You can e-mail Sara Brown at sbrown@farmjournal.com.


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