Supply Chain Management RSM Example; The Concrete Case

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Seminar Cradle to Cradle® Practical Applications in Area Development - 14:30 - 14:45 - Supply Chain Management RSM Example; The Concrete Case - dr. Erwin van der Laan (Closed Loop Supply Chain Management, RSM)

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Supply Chain Management RSM Example; The Concrete Case

  1. 1. VALUE CREATIONWITH CLSCS: THECASE OF CONCRETERECYCLINGERWIN VAN DER LAAN(ELAAN@RSM.NL)
  2. 2. CLOSING THE LOOP OF THE CONCRETE SUPPLY CHAIN ProductionSourcing Applying Recycling CollectionC2C seminar- Rotterdam, October 29, 2012
  3. 3. PRODUCT EXAMPLESC2C seminar- Rotterdam, October 29, 2012
  4. 4. RECYCLING PROCESSC2C seminar- Rotterdam, October 29, 2012
  5. 5. STAKEHOLDER MAP Purchase Marketing & Concrete managers Recyclers Sales managers engineers Acquisition Re-processing Re-marketingWaste handlers Customers: - Government -Municipalities C2C seminar- Rotterdam, October 29, 2012 - Constructors
  6. 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 ThreatsC2C seminar- Rotterdam, October 29, 2012
  7. 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 ThreatsC2C seminar- Rotterdam, October 29, 2012
  8. 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 ThreatsC2C seminar- Rotterdam, October 29, 2012
  9. 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-backVALUE MATRIX (Source: Koppius, Özdemir, Van der Laan (2011). ‘Beyond waste reduction: creatingvalue with information systems in closed-loop supply chains, ERIM working paper, Rotterdam School ofManagement. C2C seminar- Rotterdam, October 29, 2012
  10. 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. 11. Thanks!1 C2C seminar- Rotterdam, October 29, 2012

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