In this episode of The McKinsey Podcast, hosts Lucia Raheli and Roberta Fusaro interview McKinsey Senior Partner Inga Maurer about remanufacturing—the process of restoring used parts for reuse in various products. Maurer explains the remanufacturing process, its growing importance due to supply chain disruptions and cost-effectiveness, and its sustainability benefits. She identifies the key players involved, including OEMs and independent remanufacturers, and highlights industries beyond automotive that stand to gain from remanufacturing, such as heavy equipment, aerospace, medical devices, and consumer electronics. The discussion covers the market size of remanufactured parts, the impact of tariffs, and how to measure customer satisfaction. Maurer also discusses opportunities and challenges for companies on both the "make" and "buy" sides, the role of AI, and the long-term sustainability advantages of remanufacturing, while also acknowledging its limitations.
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