PHILIPS HEALTHCARE
Growing the workforce through remanufacturing of medical equipment
This text is part of our white paper on circular business. For explanation of how other companies have created business opportunities through circular economy, download our full white paper here.
There are many examples of businesses having to decrease their workforce during the last few decades due to increased automation and a demand for cutting costs. Philips Healthcare has created a successful business example, which demonstrates that there may be opportunities for increasing workforces through a transition to the circular economy by providing new services such as remanufacturing.
Their circular business principles are based on maintaining and harvesting value from their products after the initial use period is over through their Diamond Select program. It provides reliable, refurbished medical imaging systems at an attractive price, making it possible for their customers to afford up-to-date technology. This allows them to provide a wider variety of high-quality services to their patients, while supporting profitability 1.
Remanufacturing and refurbishing requires skilled de-installation and transport, cleaning and disinfection, testing and replacement of parts, upgrading of software as well as quality control and reinstallation of equipment 2. Thus, through their remanufacturing services, Philips has been able to create more jobs in a service area which might become more and more relevant in the future.
How can your company increase the workforce through circular business?
Philips Healthcare’s refurbishing system provides an example of a shift from a material-intensive business to a labour-intensive service-based business, based on the principles of remanufacturing used equipment. Your company may also increase workforce and revenue streams by creating remanufactured products. The key to creating a competitive edge is access to cheap materials (e.g. through take-back solutions), well-planned return logistics as well as use of advanced repairing equipment. It is, for instance, believed by experts that development related to 3D printing may improve the feasibility of such services.
1 http://www.usa.philips.com/healthcare/solutions/refurbished-systems
2 http://www.escf.nl/sites/escf.nl/files/Event-documentation/Philips%20Healthcare%20.pdf
Image: Philips Healthcare
Growing the workforce through remanufacturing of medical equipment
This text is part of our white paper on circular business. For explanation of how other companies have created business opportunities through circular economy, download our full white paper here.
There are many examples of businesses having to decrease their workforce during the last few decades due to increased automation and a demand for cutting costs. Philips Healthcare has created a successful business example, which demonstrates that there may be opportunities for increasing workforces through a transition to the circular economy by providing new services such as remanufacturing.
Their circular business principles are based on maintaining and harvesting value from their products after the initial use period is over through their Diamond Select program. It provides reliable, refurbished medical imaging systems at an attractive price, making it possible for their customers to afford up-to-date technology. This allows them to provide a wider variety of high-quality services to their patients, while supporting profitability 1.
Remanufacturing and refurbishing requires skilled de-installation and transport, cleaning and disinfection, testing and replacement of parts, upgrading of software as well as quality control and reinstallation of equipment 2. Thus, through their remanufacturing services, Philips has been able to create more jobs in a service area which might become more and more relevant in the future.
How can your company increase the workforce through circular business?
Philips Healthcare’s refurbishing system provides an example of a shift from a material-intensive business to a labour-intensive service-based business, based on the principles of remanufacturing used equipment. Your company may also increase workforce and revenue streams by creating remanufactured products. The key to creating a competitive edge is access to cheap materials (e.g. through take-back solutions), well-planned return logistics as well as use of advanced repairing equipment. It is, for instance, believed by experts that development related to 3D printing may improve the feasibility of such services.
1 http://www.usa.philips.com/healthcare/solutions/refurbished-systems
2 http://www.escf.nl/sites/escf.nl/files/Event-documentation/Philips%20Healthcare%20.pdf
Image: Philips Healthcare