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VALUE CREATION
WITH CLSCS: THE
CASE OF CONCRETE
RECYCLING

ERWIN VAN DER LAAN

(ELAAN@RSM.NL)
CLOSING THE LOOP OF THE CONCRETE SUPPLY CHAIN


                                           Production
Sourcing



                                                                 Applying




              Recycling
                                                        Collection



C2C seminar- Rotterdam, October 29, 2012
PRODUCT EXAMPLES




C2C seminar- Rotterdam, October 29, 2012
RECYCLING PROCESS




C2C seminar- Rotterdam, October 29, 2012
STAKEHOLDER MAP


     Purchase                                                                  Marketing &
                                    Concrete
     managers                                                   Recyclers      Sales managers
                                    engineers




                 Acquisition                       Re-processing      Re-marketing




Waste handlers                                      Customers:
                                                    - Government
                                                    -Municipalities
        C2C seminar- Rotterdam, October 29, 2012
                                                    - Constructors
SWOT – SOURCING OF RECYCLABLE MATERIAL


    Strengths                                              Weaknesses
    Cheaper…                               …but by a small margin

    -Sustainable sourcing                  - Supply and demand of
    becomes more of an issue               recyclable concrete not
                                           linked in time and place
    - Shift of focus from energy
    to scarcity of materials               - Waste Handler uses pure
                                           concrete waste streams to
    - Uncertainties in available           upgrade mixed streams and
    nearby virgin material                 thus downcycles concrete!
    sources
                                           No incentive for designers to
                                           design for reuse
    Opportunities                                               Threats

C2C seminar- Rotterdam, October 29, 2012
SWOT – PROCESSING OF RECYCLABLE MATERIAL


    Strengths                                              Weaknesses
    Technically perfectly feasible Not yet C2C
    (No downcycling!)




    Develop C2C solution                   EU legislation allows only
                                           20-50% recycled content!!




    Opportunities                                               Threats

C2C seminar- Rotterdam, October 29, 2012
SWOT – REMARKETING OF RECYCLED CONCRETE


    Strengths                                       Weaknesses
    -Optimal quality                       Convince sales and
    - Sustainable alternative              marketing managers…
    -Cheaper


    - Demand for concrete expected
    to double in 2025

    -Demand for roadbase expected
    to drop sharply

    - Provide total solution:
    Apply new and take back old
    Opportunities                                       Threats

C2C seminar- Rotterdam, October 29, 2012
POTENTIAL BUSINESS VALUE OF CLOSING THE LOOP



  Sourcing Value                                          Environmental value
  -Sourcing recycled                                      - Market leader through
  materials about 10% cheaper                             proactive footprint
  than virgin materials                                   reduction



  Customer value                                          Informational value
  - Provide sustainable                                   - Quality control through
  sourcing alternative                                    inspection at end-of-use/life
  - Provide ‘total solution’
  including concrete take-back

VALUE MATRIX (Source: Koppius, Özdemir, Van der Laan (2011). ‘Beyond waste reduction: creating
value with information systems in closed-loop supply chains, ERIM working paper, Rotterdam School of
Management.
     C2C seminar- Rotterdam, October 29, 2012
CONCLUSIONS AND SUGGESTIONS


    •       Business case certainly is there, but…
    •       EU legislation needs to allow for high quality recycling
    •       Matching supply and demand of recyclates:
              Introduce Urban quarrying concept!
              Develop “consessions” to mine the city

    •       Use The Netherlands as a pilot to develop blue print for other urban
            areas!




0       C2C seminar- Rotterdam, October 29, 2012
Thanks!



1   C2C seminar- Rotterdam, October 29, 2012

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Supply Chain Management RSM Example; The Concrete Case

  • 1. VALUE CREATION WITH CLSCS: THE CASE OF CONCRETE RECYCLING ERWIN VAN DER LAAN (ELAAN@RSM.NL)
  • 2. CLOSING THE LOOP OF THE CONCRETE SUPPLY CHAIN Production Sourcing Applying Recycling Collection C2C seminar- Rotterdam, October 29, 2012
  • 3. PRODUCT EXAMPLES C2C seminar- Rotterdam, October 29, 2012
  • 4. RECYCLING PROCESS C2C seminar- Rotterdam, October 29, 2012
  • 5. STAKEHOLDER MAP Purchase Marketing & Concrete managers Recyclers Sales managers engineers Acquisition Re-processing Re-marketing Waste handlers Customers: - Government -Municipalities C2C seminar- Rotterdam, October 29, 2012 - Constructors
  • 6. SWOT – SOURCING OF RECYCLABLE MATERIAL Strengths Weaknesses Cheaper… …but by a small margin -Sustainable sourcing - Supply and demand of becomes more of an issue recyclable concrete not linked in time and place - Shift of focus from energy to scarcity of materials - Waste Handler uses pure concrete waste streams to - Uncertainties in available upgrade mixed streams and nearby virgin material thus downcycles concrete! sources No incentive for designers to design for reuse Opportunities Threats C2C seminar- Rotterdam, October 29, 2012
  • 7. SWOT – PROCESSING OF RECYCLABLE MATERIAL Strengths Weaknesses Technically perfectly feasible Not yet C2C (No downcycling!) Develop C2C solution EU legislation allows only 20-50% recycled content!! Opportunities Threats C2C seminar- Rotterdam, October 29, 2012
  • 8. SWOT – REMARKETING OF RECYCLED CONCRETE Strengths Weaknesses -Optimal quality Convince sales and - Sustainable alternative marketing managers… -Cheaper - Demand for concrete expected to double in 2025 -Demand for roadbase expected to drop sharply - Provide total solution: Apply new and take back old Opportunities Threats C2C seminar- Rotterdam, October 29, 2012
  • 9. POTENTIAL BUSINESS VALUE OF CLOSING THE LOOP Sourcing Value Environmental value -Sourcing recycled - Market leader through materials about 10% cheaper proactive footprint than virgin materials reduction Customer value Informational value - Provide sustainable - Quality control through sourcing alternative inspection at end-of-use/life - Provide ‘total solution’ including concrete take-back VALUE MATRIX (Source: Koppius, Özdemir, Van der Laan (2011). ‘Beyond waste reduction: creating value with information systems in closed-loop supply chains, ERIM working paper, Rotterdam School of Management. C2C seminar- Rotterdam, October 29, 2012
  • 10. CONCLUSIONS AND SUGGESTIONS • Business case certainly is there, but… • EU legislation needs to allow for high quality recycling • Matching supply and demand of recyclates: Introduce Urban quarrying concept! Develop “consessions” to mine the city • Use The Netherlands as a pilot to develop blue print for other urban areas! 0 C2C seminar- Rotterdam, October 29, 2012
  • 11. Thanks! 1 C2C seminar- Rotterdam, October 29, 2012