Pilot Partners: ASSA ABLOY Openings Solutions Sweden (manufacturer), Certego (distributor and installation company)
Country: Sweden
What was piloted
ASSA ABLOY Opening Solutions Sweden operates several refurbishment processes. One example is its electromechanical access product families. Together with Certego, one of its distributors, a pilot was launched to improve the distribution flow and end-customer value proposition for refurbished products. The objective was to scale the volume of circular products sold. The team mapped the current flow from manufacturer to distributor to end customers, visited the refurbishment centre and designed an improved future-state flow. Based on the findings, they built a structured method to determine which products are suitable for refurbishment.
Challenges and how they were tackled
Low inflow of products into the selected product group. The pilot was limited to a single product family with an existing refurbishment process. In future projects additional product categories will be included.
The distribution route to the end customer is based on linear sales principles. Existing sales channels are designed to prioritize new products, rendering refurbished products remain in stock. The team has identified key stakeholders at both companies to support the operationalisation of a new flow.
Two business cases were identified. One between the manufacturer and the distributor, and another between the distributor and the end customer. Each requires separate operational design and logic.
Key learnings
The technical refurbishment process is effective, and there is a clear customer demand for circular products.
Refurbished products require a dedicated route to market. Existing channels are designed for new products. A future model could include a standing quota of refurbished units within distributor orders.
The end-customer value proposition needs to be clearly defined. Pricing, warranty, availability and the experience of "buying refurbished" must be explicitly articulated.
Scaling is more dependent on inflow than output. Expanding sourcing to include additional product types or older products are realistic routes.
Solution scaling probability: 4.0 / 5
ASSA ABLOY and Certego will keep collaborating to expand refurbishment into more product categories. Scaling will require clear customer demand, a stronger business case, and an agreed, updated distribution flow across the value chain.
We have learned a lot about both supplier and customer requirements. Distribution is the challenge. Our goal now is to keep cooperating with ASSA ABLOY and start selling and distributing refurbished products.
— Björn Persson, Head of Internal Control and Sustainability Certego