Table 2

Strategic positioning of each CLSC process during transitional period and long-term horizon

Battery CLSC processes aStrategic positioning during transitional periodStrategic positioning in the long-term horizonCLSC configurations
1234
BPP(1) Foster development of local SC1.1. Foster development of local SC (move battery production to the EU; use of locally recycled battery materials)xxxx
 1.2. Internalise in-house production of battery pack (assembling of the service box, battery module and battery pack management software)  xx
 1.3. Use of recycled battery material in production of new battery cells   x
(2) Better adaptation of the ICE vehicle design and components to EV2.1. Enable the platform vehicle architecture thanks to optimisation (standardization) of battery technology/design and its performance improvementxxxx
2.3. Initiate design of EV as a new product, not adaptation of ICE vehicles designxxxx
(3) Co-development of battery pack structure with suppliers3.1. Enable compatibility of battery design for RM and RF operations xxx
3.2. Design battery pack by considering its utility for both the first and the second life applications  xx
3.3. Enable cell-to-pack approach to improve energy density and reduce cost of battery production  xx
3.4. Develop Battery Management System (BMS) xxx
RT(4) Assess feasibility of the three modes of relationship with customers and suppliers: return battery contract, service contract, and warranty contracts4.1. Cost optimisation of contracts thanks to accumulated knowledge on patterns of battery use and state of returned batteries xxx
4.2. Improve competitiveness of contractual agreements with customers by offering multiple modes of battery replacement (new, refurbished, or remanufactured) xxx
4.3. Leasing batteries (based on certain number of km or/and numbers of charge cycles) xxx
4.4. Extend battery warranty to the entire battery lifetimex  x
4.5. Offering fast battery repair service at dealership point(s) or local warehousesxxxx
HD(5) Suppliers manage full HD x   
(6) Outsource full HD to third parties x   
(7) Training the dealers to conduct the first visual assessment and classification of returned batteries
Acquisition of relevant knowledge, skills, and equipment
7.1. Perform in-house HD of returned batteries (in addition to the visual inspection) – to increase transparency of supplier’s warranty managementxxxx
7.2 Perform in-house full HD at recovery facilities– to improve distribution of returned batteries between the recovery routes xxx
RM/RF(8) Learn the process and requirements by third parties through outsourcing of recovery processes8.1. Internalise RM/RF processes (in-house/outsourcing/mixed operational mode) xxx
RP(9) Develop explorative projects to identify opportunities around RP9.1. Internalise RP processes (in-house/outsourcing/mixed operational mode)  xx
(10) Learn the process and requirements by third parties (out-sourcing operational mode)10.1. Internalise RP processes (in-house/outsourcing/mixed operational mode)  xx
(11) Negotiate with battery pack supplier outsourcing of RP to external companies11.1. Internalise RP processes (in-house/outsourcing/mixed operational mode)  xx
(12) Sell returned batteries (without any intervention) to either recyclers or remanufacturing companies   x 
RC(13) Store returned batteries until high volumes are reached x   
(14) Sell returned batteries to recyclers in exchange of RC fee
Choose recyclers that accept low volume of returned batteries
14.1. Handling of EOL batteries through individual EPR schemesx   
14.2. Handling of batteries not suitable for RM/RF/RP by recyclers (outsourcing operational mode) xx 
 *Using recycled materials in new battery cells production through triangle alliance with recyclers and cell producersx   
 *Using recycled materials in new battery cells production through JV/outsourcing operational mode with recyclers   x
 *Ownership of recycled material for securing material sources for battery production (through alliance with recyclers; JV/outsourcing operational mode)   x
RL(15) Outsource RL to service providers15.1. Internalise RL processes (in-house/outsourcing/mixed operational mode)xxxx
(16) Increase transparency and control in existing RL16.1. Full control and monitoring of the flows of returned batteriesxxxx
(17) Develop information management system to support RL17.1. Full control and monitoring of the flows of returned batteriesxxxx
(18) Shared use of RL of conventional parts (hubs, routs, warehouses)18. 1. Expansion and optimisation of RL network to support recovery facilities (RM/RF/RP/RC) and new geographical marketsxxxx

Note(s): aBPP= Battery purchasing & production; RT= Return of EOL batteries; HD= Health diagnostics; RM = Remanufacturing; RF= Refurbishment; RP= Repurposing; RC= Recycling; RL= Reverse logistics

*long-term strategies without direct corresponding short-term strategies

Source(s): Authors’ own work

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