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The following example case is intended for learning and inspiration purposes and is based on publicly known business practices.
Lupa Consulting has not been involved as an advisor in the process described.
Circular strategies in practice

Caterpillar

Caterpillar, leader in heavy construction equipment, has successfully rolled out remanufacturing operations that save customers money for as-new guaranteed equipment.

SECTOR: 

Heavy machinery

Location: 

U.S.

Circular strategies:

remanufacturing, deposit system, take-back program

Why it's a great example of circularity in business

This is an excellent example of a win-win-win: for the customer, for the planet and for the company driving the initiative. Caterpillar customers effectively pay a deposit included in the price of the machinery that incentivises them to return the product when worn or broken for remanufacture. They then obtain a remanufactured as-new part at a fraction of the cost. Here are some other benefits from their reman operations:

  • product life extension of valuable heavy machinery
  • new revenue streams from remanufacturing of own equipment and equipment from other manufacturers
  • reduced material costs and supply chain risk
  • closer relationships with their customers and increased customer loyalty
  • remanufacturing and diagnostic technologies developed help predict failures and improve their product designs.
  • improved brand image from circular activities
Read more

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