This study analyses remanufacturing operations of a Finnish heavy vehicle manufacturer with global operations. The company has remanufactured and refurbished certain components for a decade in a centralised remanufacturing and recycling centre in Finland, but it has encountered significant challenges, especially in reverse logistics. The company considers regional remanufacturing to decrease these disadvantages. The purpose of this study is to analyse the characteristics, challenges and benefits of regional remanufacturing by reviewing the relevant literature and analysing the empirical data, including a survey for international subsidiaries of the case company to determine regional needs. As a result, we have identified significant benefits, especially related to minimised logistics costs and better availability of the components, but also challenges, such as lack of resources, and insufficient economies of scale.
In this article, the utilisation of a case side stream, aqueous paint sludge is studied in accordance with the principles of the circular economy. The study's main objective is to find new potential utilisation possibilities for aqueous paint sludge generated in the region and take a closer look at the role of logistics in the industrial side stream utilisation-based business cases and value chains.Study design/methodology/approach: In this article, the utilisation of aqueous paint sludge is studied via a descriptive case study in the context of Northern Ostrobothnia, Finland. The current state of the paint sludge problem was analysed by interviewing five company representatives. In addition, a workshop was organised, and before the workshop, a questionnaire was sent to all invited.Findings: As a result, the most feasible solutions for aqueous paint sludge utilisation were identified and evaluated from economic, technical, and environmental points of view in the context of this study. In all the proposed solutions, one general challenge was the logistics for narrow material flows from decentralised sources in a relatively large geographical area.Originality/value: Prior case studies of paint sludge utilisation as a raw material have been conducted, but the logistics have not played a significant role in the studies. Logistics has been an important part of the circular economy in the literature. This study reaffirms this notion and finds logistics to have an important and decisive role in industrial side stream utilisation-based business cases and value chains.
Globally operating companies have been disrupted by many simultaneous crises in recent years, specifically the COVID-19 pandemic, Brexit, and trade wars. This study identifies the key factors in companies' decisions to expand their global supply chains or to operate more locally in today's world.Study design/methodology/approach: This article contains a literature review and empirical study. Representatives from three Finnish B2B manufacturing companies in the metal industry were interviewed about their international and local operations. Findings:The key reasons for global operations included a large supplier base, component availability, lower costs, and specialised products. Typical problems included quality issues, long lead times, and communication challenges. Specific risks and mitigations around COVID-19, Brexit, and trade wars are also presented. Originality/value:The study provides updated global and local operations information. Unique reasons for global operations included manufacturing Engineerto-Order (ETO) products close to the customer and product changes.
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