Reduce Core Management Costs

Our core management program tracks

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supply and demand for the finished product. Cores that are not currently needed are stored without additional parts or labor (as Raw Cores). If demand increases, those Raw Cores are then remanufactured. This lean system means the client only pays for remanufacturing it actually needs, minimizing inventory and labor costs.

In a standard core management system, all units are remanufactured when they are returned and the client is charged for the testing, remanufacturing and handling costs associated with that core at that time. This often causes the client to ties up cash by paying for remanufacturing work now, when that cluster may not be needed for months or even years.

In the ISS Lean Remanufacturing Model, we have software that automatically analyzes every core that comes in and measures its likelyhood for use against current inventory levels and anticipated seasonal spikes. As an example, if we receive a core in July and project that we will not need it until January, we will store it in “Raw Core Inventory” until we need to begin remanufacturing it in December. With agreement from the client, ISS will scrap out cores that do not have a use projection to reduce inventory and carrying costs.

In addition, we also create a bank of intelligence to determine needed seasonal -inventory levels. During the busy season, we schedule to carry 20 days’ supply on hand. During the slower season we only carry 15 days of fully remanufactured inventory.

Demand Mapping and Lean Core Management can enable ISS to effectively reduce remanufacturing inventory by up to 80%.