IFS Cloud’s New Remanufacturing Functionality Empowers Manufacturers With Circular Economy Tools

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IFS Cloud’s New Remanufacturing Functionality Empowers Manufacturers With Circular Economy Tools

Manufacturers are facing increasing pressure to adopt circular economy principles due to regulatory demands, such as the EU’s Corporate Sustainability Reporting Directive (CSRD), and rising customer expectations for sustainable products. While the shift toward circularity can be challenging, it also presents opportunities for new revenue streams and improved business models. IFS is helping manufacturers navigate this transformation with its latest update to IFS Cloud, which introduces powerful new capabilities for remanufacturing.

Remanufacturing is a key component of the circular economy, where products that have reached their end-of-life are disassembled, cleaned and reconditioned. These components are then reassembled and tested, bringing the product back to its original – or even better-than-new – condition. By adopting remanufacturing, manufacturers can reduce waste, lower costs and offer more affordable products to customers, all while contributing to sustainability goals. IFS Cloud’s new capabilities allow manufacturers to manage the entire remanufacturing process within a single platform. The software tracks the combination of used and new components, ensuring that every part is either reused or replaced based on its condition. This capability helps manufacturers keep costs down while maintaining product quality and optimizing margins. 

The update also introduces a more efficient approach to material planning. IFS’s material and resource planning (MRP) engine creates both remanufacturing and disassembly orders simultaneously, ensuring that manufacturers have the necessary used components, or ‘cores’, ready for remanufacturing. Additionally, shop floor integration within IFS Cloud ensures that workers can seamlessly manage the remanufacturing process, from disassembly to reassembly. The software enables technicians to easily track production progress, manage component inventories and ensure that each product meets quality standards. The system also automatically adjusts the bill of material as components are disassembled and replaced, further streamlining operations. From a sales perspective, IFS Cloud allows businesses to quote customers on both new and remanufactured products, helping to showcase the lower pricing and improved delivery times offered by remanufactured units. 

The remanufacturing capabilities embedded within IFS Cloud provide manufacturers with a comprehensive solution for adopting circular economy practices. By integrating remanufacturing into their core operations, firms can reduce costs, improve margins, and meet increasing regulatory and market demands for sustainable products. As industries continue to shift towards more sustainable practices, remanufacturing-focused software will provide manufacturers with the tools they need to stay competitive in a more circular economy.

To learn more about the current state of remanufacturing and the technology supporting manufacturers on their circularity journey, read Strategic Focus: Redefining The Role Of Remanufacturing In The Circular Economy Through Innovation

Josh Graessle

Senior Analyst

Josh is a Senior Analyst in the Verdantix Industrial Transformation practice. Prior to joining Verdantix, Josh worked at Volvo Group, where he gained experience in factory support and implementation of industrial systems, industrial internet of things, digitalization, and data analytics. He holds a BS in Mechanical Engineering, as well as an MBA from the University of Delaware.