A couple weeks ago I blogged about the efforts of Agco and its parts program (That's Logistics). This week comes news that Case IH is also committing to new investment to enhance delivery remanufactured products to equipment dealers in North America.
These efforts are a big deal. As farms get larger, downtime gets more expensive, and major equipment manufacturers know this. While they work very hard to have the right part on hand when needed, there can be roadblocks. With this investment in a new 260,000-square-foot distribution center in Springfiled, Mo., Case IH can help speed products where needed.
Springfield, Mo., is the site of the CNH Reman operations which service not only Case IH ag equipment, but Case Construction Equipment, New Holland Agriculture, New Holland Construction, Kobelco and Fiat Powertrain Technologies. The aim of the new distribution center is to provide shipping of high-priority remanufactured products directly from Springfield to dealers. That's especially true for specialized, or unique, configurations.
Remember the reman business is a lot different than the old "rebuild" business. These remanufactured products sold and warranted by major manufacturers are essentially new, but savings come from reusing key base parts - engine blocks, as an example - that can be expensive to fabricate.
The challenge in any business is the special order. Having the right engine with the exact setup can be a challenge. In a press release announcing the new facility, Scott Harris, vice president of sales and marketing, CNH Parts & Service, North America, says: "By having the CNH Reman distribution center at the Springfield facility, we can more quickly configure products for specific customer requirements, and expediate high-priority shipments to our dealrs. This will significantly improve our response time on critical orders."
Launched in 2009, CNH Reman - a joint venture between Springfield Remanufacturing Corp. and CNH - has expanded to cover five major product lines: engines and components, drivelines and components, rotating electrical, electronics and hydraulics.
Case IH notes that added benefits of reman parts to equipment owners includes high quality assemblies and components at a reduced price; reduced repair times during peak seasons when downtime can be costly (better to install a reman engine than have your tech overhaul the existing engine); and the "eco-friendly" solution because the process recycles components.
Springfield Remanufacturing Corp. has a history with Case IH - and IH before that. In fact, it was originally the International Harvester remanufacturing plant, which was purchased by employees back in 1983. The two-year-old joint venture has evolved into a full-scale remanufacturing and services company employing 95 workers.
The parts business is interesting and the growing trend toward the use of remanufactured components offers potential for all farm operations. With the new distribution center, CNH Reman aims to be more responsive. Who could argue with that?