The Electronics Supply Chain Can Thrive in the Circular Economy
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Antea Group senior consultant Pamela Gordon completed the Ellen MacArthur Foundation's six-week Executive Education Introductory Course, titled "Enterprise, Innovation and the Circular Economy." This slideshow capsulize her learnings as relevant to the electronics supply chain.
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The Electronics Supply Chain Can Thrive in the Circular Economy
- 1. The Electronics Supply Chain Can Thrive in the Circular Economy Enterprise, Innovation and the Circular Economy _____________________________ Pamela J. Gordon Antea Group Senior Consultant Technology Forecasters Inc. CEO
- 2. Challenges for Tech’s Transition to the Circular Economy Quickening the Pace to Circular Tech Promise for the Circular Economy in the Tech Industry Antea USA, Inc.
- 3. Promise for the Circular Economy in the Tech Industry Innovative Competitive Barrier breaking Quick to market Fluent in Teamwork The Tech Industry’s traits… …can foster swift transition to the Circular Economy.
- 4. 1. Move away from selling products. 2. Deliver what customers think is 'a better way to get what I need.' 3. Offer more capability with existing assets. 4. Specify non-toxic materials as safe 'food' for additional products. Promise for the Circular Economy in the Tech Industry From Ken Webster’s Feb. 17, 2016 lecture The Tech Industry has been making progress in all four endeavors.
- 5. Raw Materials Comp- onents Contract Manu- facturers Brand Owners Customers Down- cycling or Landfill Challenges are easier to meet with executive commitment to profitable Circular solutions. Linear Model Used by the Electronics Supply Chain (Reflecting Manufacturing Outsourcing, embraced 1985 to present) Challenges for Tech’s Transition to the Circular Economy “The recycling stream is contaminated.” “Finite materials? We have a steady stream of supply.” “My customers hesitate to enter into long-term leases.” “We’ll wait until forced by regulations.”
- 6. Ask these questions at executive meetings: Quickening the Pace to Circular Tech How can we deliver greater customer benefit with few to no physical resources and minimal cost? How can we maximize revenues through leasing? How can we leverage the products/materials our customers’ already access, and add value locally? How can we tightly control our products’ raw materials forever? How can we be first to offer Circular solutions for greatest profit, responsibility, and brand value?
- 7. Reward teams for… Designing in circularity Keeping materials in the economy Detecting and plugging leaks of materials into the natural environment Preventing material from escaping collection systems Planning for upcycling Achieving not only efficiency, but also effectiveness Increasing both revenue and profit through Circular models Quickening the Pace to Circular Tech “We need multidisciplinary teams… If we want to succeed, then we need to broaden collaboration.” –Katia Hansen
- 8. Help Tech Companies to Transition to the Circular Economy Quickening the Pace to Circular Tech Strategy: Engage company leaders and stakeholders in leveraging the business value of Circular solutions. Implementation: Train and facilitate: • Design for Circularity • Material selection and tracking…forever • Profitable financial models • Collection and re-entry into the economy • Measuring and promoting success • Continuous improvement More granular list of steps and key challenges are available upon request.
- 9. B E T T E R B U S I N E S S , B E T T E R W O R L D℠ Pamela.Gordon@AnteaGroup.com USA Headquarters 5910 Rice Creek Parkway, Suite 100 St. Paul, MN 55126, USA USA Toll Free: +1 800 477 7411 International: +1 651 639 9443 Belgium Roderveldlaan 1 2600 Antwerpen Colombia Calle 35 No. 7-25, Piso 12 Bogota, DC France 29 avenue Aristide Briand - CS 10006 94117 Arcueil Cedex Netherlands Monitorweg 29 1322 BK Almere
Editor's Notes
- 1. What do you see as the most interesting/promising developments around CE in your area ? 2. What do you see as the greatest challenges/barriers to the ‘transition’ ? 3. What support or enablers would be most helpful to you your future work in this area ?
- Innovative: 3D printer http://www.pcmag.com/article2/0,2817,2483632,00.asp Competitive: Barrier breaking: 12” silicon wafer https://commons.wikimedia.org/wiki/File:12-inch_silicon_wafer.jpg Swift: Apple Watch http://www.techradar.com/us/news/wearables/apple-watch-2-what-we-want-to-see-1289202 Fluent in teamwork
- "Move away from selling products!" If you work for a company that makes durable products, then instead of selling the product, you can maximize revenues by renting it, maintaining it, upgrading it, reselling it multiple times, and then comprehensively mining it for useable parts and materials. Financial executives must approve long-time generation of revenue that exceeds that from a one-time buy, and product executives must require that all materials, components, assemblies, and finished products are designed for efficient maintenance and reuse. "Deliver what customers think is 'a better way to get what I need.'" When companies offer customers better-designed, service-based systems, deploying the "borrow-use-return" model instead of "take-use-waste," customers will perceive the offer to be a better way of getting what they need. Customer don't need to think, "I want to do this because it's better for the planet;" instead, the reduced use of resources is a byproduct of a well-designed service / system. The tech industry has long tended to offer the latest technology, trusting that customers will recognize its advantages and buy it. Participating in the Circular Economy guides tech executives to offer their latest technologies in ways in which both first and subsequent customers can find competitive value. That's a good thing for the whole industry! "Offer more capability with existing assets. Design systems for growing the economy by taking use of more and more resources out of the mix." Examples of industries leveraging existing assets to meet many more customers' demands include transportation (Zipcar, Maersk), lighting (Philips), equipment (Caterpillar), apparel (Mud Jeans' Lease A Jeans), and furnishings (Ikea's Second-Hand Campaign). The tech industry has ample opportunities to offer leveraged-asset solutions to numerous customers at lower costs compared to selling physical products to single customers. Webster points out that "Growth is traditionally described as output, not solutions." It's time for electronics industry executives to figure out to how to "offer more capability with existing assets" faster, more completely, and more profitably than do competitors. "The Circular Economy adds money flows, markets, and the business case to cradle-to-cradle." This was Ken Webster's response to a question about how the Circular Economy differs from cradle-to-cradle. In my experience, electronics-supply-chain executives' decisions are propelled forward more to gain business advantages than by "design for environment" as its own reward. "Everything is 'food' in the Circular Economy." Think of the entire electronics supply chain as non-toxic "food." How will this precious metal, molded plastic, bio-based material, subassembly, and packaging be used to "feed" another product, process, or material? Of course, this necessitates the industry's full transparency about what's in our materials, components, products, and packaging -- which is the current trend anyway for both regulatory and customer reasons. "Regulations should allow everyone to be better off." Did you know that Circular Economy legislation is brewing in the European Union? Webster explains that people can spend their money on productive products and services, which also conserve resources and energy. TFI and Antea Group not only help clients meet product-and-facility regulations efficiently and responsibly, but we also participate in regulators' and standard-makers meetings to help make environmental and social-responsibility requirements effective for the tech industry and its suppliers and customers. Entering the Circular Economy is a key opportunity for us to drive resource efficiencies through practices that allow customers to be better off. "Enjoy yourselves; it's an adventure."
- Instead of asking… Ask instead… How shall we improve our next-generation product? How can we deliver greater customer benefit with few to no physical resources and minimal cost? How can we sell more? How can we maximize revenues through leasing? How can we get more from our supply-chain, cheaper? How can we leverage the products/materials our customers’ already access, and add value locally? How can we tightly control the materials we buy? How can we tightly control our products’ raw materials forever? How can we beat our competitors this quarter? How can we be first to offer circular solutions for greatest profit, responsibility, and brand value?
- Scientists (biologists, chemists, physicists, climatologists, engineers) Business experts (executive leadership, sustainability, supply chain, finance, EHS, Marketing, logistics) Social and Political Scientists We need multidisciplinary scientists (biologists, chemists, engineers) and business experts (sustainability, management consultants, EHS, etc.). Katja Hansen says: Couldn’t agree more with what’s she’s suggesting. Need multidisciplinary teams. Working with EPA good example: environmental science to biologists, chemists, physicists, social scientists, and political scientists. Process is called “Design Thinking” If we want to succeed need to broaden collaboration and change univ education; Professor Michael Braungart (https://en.wikipedia.org/wiki/Michael_Braungart). Limited education doesn’t work for Circular Thinking for implementing C2C and CE. We need to understand each other better and cross fertilize. Each student contributes to the 2 metabolism systems. Peter Hopkinson: Don’t get caught within one discipline
- Services: Gap analysis: for making their portfolio of products and business models Prioritize products that generate the most revenue and environmental benefit for circularization. With AG’s hot-spot assessment (rougher look; semi-quantitative). If B2B interview customers about propensity to lease rather than buy. Benchmarking best practices LCA between linear and circular models Design for Circularity curriculum Financial model Logistics / reverse logistics