Understanding the growing need for design for circularity – investigating remanufacturing profitability barriers in an automotive industry case

ABSTRACT:

For industries transitioning to circular economy, understanding the business case is essential. This paper highlights key business model factors for remanufacturing within a heavy truck manufacturer. Twenty-six interviews were held, the barriers to profitability were identified as cost structure, key resources and cores and key activities. Applying systems engineering principles can help translate business needs into requirements, mitigate complexity and align stakeholders for effective transformation. Recommended future research is to investigate partnerships, profitability, and model design.