By Cat Reman | Posted: October 13, 2022

Core Return Drives Cat^® Reman Value

The Cat^® Reman process starts with the concept of “core return.” When you bring a qualifying used part — a “core” — back to your Cat dealer, you can receive a core deposit back. Then, that core is sent for remanufacturing at a Cat Reman facility. Let’s discover how core return works and how it delivers value to Cat customers.

Reviving Cat Reman Parts

When a machine component reaches the end of its service life, what happens to it? Sometimes, it may be rebuilt by an equipment dealer or a specialized build shop. Other times, it may just go to a scrap yard or landfill. In 1973, however, Caterpillar came up with a third solution — comprehensive remanufacturing that goes beyond a simple rebuild.

The Cat Reman process strips an end-of-life component down to its smallest piece parts, inspects and cleans everything to a microscopic level and remanufactures usable components to like new condition. From there, the part is remanufactured (not just reassembled) using the same factory specs as a new part, including critical engineering updates. Then, it gets reintroduced to the market as one of over 8,000 types of Cat Reman products.

And the entire process starts with the idea of “core return.”

Cat Reman relies on customers to return end-of-life components to their Cat dealer in exchange for a credit on a replacement Cat Reman product.*

“The lifeblood of our business is really around that core coming back from our customers,” says Trent Tippey, Construction Industry Commercial Manager for Cat Reman. “That way we can leverage our processes in order to return it back to like new.”

Jeff Gutzwiller, Cat Reman Product Manager for Engines and Engine Components, says core return is key to the value of Cat Reman because cores in good condition can be remanufactured for less money and using fewer resources than the manufacture of a new part from scratch.

He explains, “That's very important to us because A) it offers sustainable benefits, and B) it keeps things out of landfills. It also reduces the energy**… we use in our remanufacturing process. When we get that core back… if it's a core piece of iron — like a casting or a forging — we're just taking it back and we're salvaging it and putting a relatively low amount of energy and work into that product to bring it back to that like new condition… We’re saving energy and saving raw materials by reusing that initial forging or casting or component. That saves a tremendous amount of energy.”

Returning a Core

Obviously, a good core is more valuable than one that needs a lot of salvage work, so meeting Cat Reman core acceptance criteria (CAC) will net a customer a bigger credit toward a replacement part.

While there are specific core requirements for different types of parts (see sidebar), the general criteria are easy to understand. A good, useable core:

Is fully assembled and complete
Is not visibly cracked, broken or welded
Displays no non-operational damage such as mishandling, excessive rust, corrosion or pitting
Has an acceptable Cat part number still visible

Essentially, says Kathy Monson, Cat Reman Commercial Manager, “We want the core in an ‘as removed’ condition… Any attempt to salvage that core will lead to a rejection… Standard operating damage, things that you would normally see in the operational use of a product, generally [is] accepted.”’

Dale Nordman, Parts Manager for Cat dealer Butler Machinery in Fargo, North Dakota, says core rejections happen less often these days. “In the past, we probably had more concerns over core criteria. Caterpillar [has] made that easier, as time has gone on as far as inspections, processes and what is considered a good core, partial core or an old core… In the end, [customers] know… what their end result is going to be.”

Cat Reman Engineering Team Lead Kegan Luick notes that ongoing developments in the remanufacturing and parts salvage process have helped to relax the core return criteria. “The Salvage Development team is constantly working to address more and more defects and failure modes of the cores so that we can maintain the reusability and costs of our remanufacturing process.”

Additional Core Information

Click on these links to see more on the core return information for these popular Cat Reman products.

• Air Compressors
• Cylinder Heads
• Engines
• Engines/Long Blocks
• Engines and New with
Core Clean Emissions Modules
• Hydraulic Cylinder Groups & Assemblies
• Hydraulic Pumps & Motors
• Injectors
• Oil Coolers
• Oil Pumps
• Turbochargers
• Water Pumps

The Remanufacturing Process Begins

When a customer brings a part in for core exchange, the Cat dealer performs an on-the-spot core inspection and provides an exchange price. If the dealer has a replacement part in stock, the exchange can happen right away. If not, a Cat Reman product can be delivered from one of several facilities around the world.

According to Renea Miller, Section Manager for the Cat Reman facility in Corinth, Mississippi, about 95% of the cores returned worldwide come through the Corinth facility.

From there, she says, the race is on. “When that core piece comes in, that core has to be turned around in 48 hours. The clock starts when that core is actually scanned off of [a] truck. Then, once it's inspected, it either goes to our warehouse facilities and [is] used internally [at the Corinth facility] or it's distributed to other facilities.”

Those facilities then remanufacture the cores to like new quality standards and return them to the Cat Reman product line.

Jeff Gutzwiller sums up the remanufacturing process: “We get your core back. We completely disassemble it, clean it and then use state-of-the-art salvage operations to bring it back to like new performance. And then it is assembled in a Caterpillar manufacturing environment, using the Cat quality management system. And then it goes back out to the field with like new performance backed up by… the same warranty* as new.”

Streamlining the Cat Supply Chain

“The big advantages of using the Cat Reman product [are],” notes Gutzwiller, ”you're getting your product from the same people that designed it and validated it new — from the same people that have the access to all that intellectual property and know-how.”

Cat Reman Strategy Manager David Andres says core return helps customers get the critical parts and components they need in a timely manner by letting them play a critical role in streamlining the Cat supply chain. “When you use Cat Reman and return the core, you're relieving the supply base constraints and the pressure, and you're generally helping Caterpillar serve you recursively and in the future.”

Trent Tippey adds, “We look at that core as an opportunity … Getting that core back — getting the opportunity to bring it back to like new, meeting the same quality tests as it was when it was new — is something that not every remanufacturing entity on the globe can do. And we take a lot of great pride in being able to do that for our customers.”

Check out the range and variety of available Cat Reman parts.

*Cost savings based on return of core; core conditions apply. Warranty can vary by model and application; limitations apply. For complete details about the applicable Caterpillar Limited Warranty, contact an authorized Cat dealer.
**Represents U.S. environmental impacts comparing "gate-to-gate" remanufacturing and manufacturing processes for engines and components. Based on 2018 external study of Cat engines, alternators and turbochargers. Does not include impacts elsewhere in our value chain.

THERE’S MORE TO CAT REMAN

Head to the Cat Reman homepage to learn more about the parts and processes behind remanufactured Cat products.

VISIT THE WEBSITE

NEED HELP FINDING THE RIGHT REPAIR OPTION?

GET IN TOUCH

Cat Reman

The thought leaders and subject matter experts involved in the design, development, distribution and marketing of Caterpillar’s remanufactured, like new products.