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Retail rollout - The Next Inovation Frontier

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We live in an Anthropocene age where we cannot continue indefinitely and the solution is the Circular Economy
The retail industry is locked in a linear paradigm where through its lengthy time to market and restrictive re-use or reconfiguration systems are unable to respond quickly to volatility in customer preference and loyalty.
The sensitivity to our environment requires an industrial system that is restorative by design a Cradle to Cradle methodology: A “Workhouse of the Future”
a “Whole system” model that leverages sustainability and creates Competitive Advantage within a closed loop circular system.
An economic opportunity exist for retail brands that understand & leverage the difference between a linear & circular approach.

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Retail rollout - The Next Inovation Frontier

  1. 1. Retail Rollout The Next Innovation Frontier in Architecture, Engineering & Construction Philip Thomas Optumplus philip.thomas@optumplus.com
  2. 2. Context: Anthropocene & the Circular Economy 01 table of contents Current Roll-out: The Linear Approach 02 The New Way: The Circular Approach 03 A Whole Systems Model: Leverage Sustainability & Deliver a Competitive Advantage 04 A Paradigm Shift: To an Economic Opportunity 05 Snapshot: Retail Rollout The Next Innovation Frontier 06
  3. 3. 3 Anthropocene & The Circular Economy In recent years an new term emerged: Anthropocene It rightly implies that in this age humans became the dominant force shaping our physical environment We live in an economy that: extracts resources at increasing rates without consideration for the environment in which it operates, without consideration for our natural planetary boundaries, It cannot continue indefinitely.The solution is: The Circular Economy Where products do not quickly become waste, but are: •reused to extract their maximum value before safely and •productively returning to the biosphere. context A Duarte-Slidedocstemplate section 01 "In a world of soon to be 9 billion consumers who are actively buying manufactured goods, this approach (of waste ) will hamper companies and undermine economies. We need a new way of doing business. The concept of a circular economy promises a way out." Paul Polman Chief Executive Officer, Unilever
  4. 4. 4 Rebuild / Sell Reconfigure Re-Lease Maintain Build Design Lease/Acquire The Linear Approach The retail industry is locked in a linear paradigm: This model has been exceptionally successful in providing: affordable service or products to consumers and material prosperity to many. But has its issues with the following: It downgrades material as it goes through the system Lengthy time to market Restrictive re-use or reconfiguration Unable to respond quickly to volatility in customer preference and loyalty current rollout A Duarte-Slidedocstemplate section 02 "The linear ‘take-make- dispose’ economic model relies on large quantities of easily accessible resources and energy. Much of our existing efforts to decouple the global economy from resource constraints focus on driving ‘linear’." Towards a Circular Economy -the Ellen MacArthur Foundation Report
  5. 5. 5 The Circular Approach The sensitivity to our environment requires an industrial system that is restorative by design. This model has been exceptionally successful in providing: Re-useof Building blocks individually or collectively ReconfigureBuilding blocks separately or individually RelocateBuilding blocks on different sites or same site Respondingquickly to changing change in customer preference and loyalty the new way A Duarte-Slidedocstemplate section 03 "The circular economy goes beyond recycling as it is based around a restorative industrial system geared towards designing out waste. The goal is not just to design for better end-of-life recovery, but to minimise energy use. Towards a Circular Economy -the Ellen MacArthur Foundation Report Lease /Acquire Product Development Site Prep Manufacture Assembly /Hook up Re-use
  6. 6. 6 Cradle to Cradle Methodology Restoration by design in a Cradle to Cradle methodology: A “Workhouse of the Future” Stage 1:Product Development Brand Design & Specification >Kit of Parts >Store -Building Blocks Stage 2: (parallel to Stage 3) Site Prep Prep work activities at site >providing hooks up to the various skids Stage 3: Manufacture Component Level Assembly offsite >Manufacture individual Building blocks offsite > Modularize into individual building blocks > Stage 4: Assembly /Hook up Final assembling of the store building blocks Stage 4: Reuse Pull out of building blocks for restoration > Reuse of building blocks at same site / or other sites the new way A Duarte-Slidedocstemplate section 03 “Cradle to cradle design refocuses product development from a process aimed at limiting end-of- pipe liabilities to one geared to creating safe, healthful, high-quality products right from the start.” William McDonough and Michael Braungart
  7. 7. 7 Leveraging Sustainability The creation of a whole system approach that: Leverages sustainability through: Non traditional approach to design and procurement cycle Earlier freeze of key equipment/concepts Reduce Plot size through defined process blocks Lower carbon print with work taken offsite in a controlled environment Lower Environmental/Socioeconomic impact Transfer of work from the field to offsite & move man-hours out of the field Mitigateenvironmental permitting Provide early start up & commissioning Reduce laydown area for storage and fabrication awhole system model A Duarte-Slidedocstemplate section 04 ‘Ultimately, a closed loop approach to the reuse of not just textiles, but all types of resources, is basic common sense’. Cyndi Rhoades , CEO, Worn again & Nick Ryan
  8. 8. 8 Delivering a Competitive Advantage The creation of a whole system approach leads to: A competitive advantage through: Reduced time to market within a closed loop ecosystem Early start of business at location due to reduced delivery time line Minimum affect on bottom line due to reduced delivery time line Predictable delivery & risk in a closed loop ecosystem Reduced capital costwith a product mindset awhole system model A Duarte-Slidedocstemplate section 04 "Upward trending and volatile materials and energy prices, difficult credit conditions and the myriad opportunities of the digital revolution are combining to make a circular economy the key value driver for the coming decades." Sarah Churchill-Slough -A New Dynamic -Effective business in a circular economy
  9. 9. 9 To an Economic Opportunity An economic opportunity exist for retail brands that understand & leverage the difference between a linear & circular approach: Opportunities such as: Tapping new and bigger profit poolsthrough lower input cost Create entire new profit streams by reducing material costs New business opportunities due to systems redesign/rethinking Obtain finance for R&D for designing a circular delivery Building greater resilience to address greater volatility, declining customer loyalty aparadigm shift A Duarte-Slidedocstemplate section 05 Your company’s survival may depend on the way you answer one question: “How will your company adapt” - Fast Company
  10. 10. A Paradigm Shift Retail Rollout The Next Innovation Frontier -leveraging Sustainability and delivering a Competitive Advantage. snapshot
  11. 11. 11 Retail Rollout –The Next Frontier We live in an Anthropocene age where we cannot continue indefinitely and the solution is the Circular Economy The retail industry is locked in a linear paradigm where through its lengthy time to market and restrictive re-use or reconfiguration systems are unable to respond quickly to volatility in customer preference and loyalty. The sensitivity to our environment requires an industrial system that is restorative by design a Cradle to Cradle methodology: A “Workhouse of the Future” a “Whole system” model that leverages sustainability and creates Competitive Advantage within a closed loop circular system. An economic opportunity exist for retail brands that understand & leverage the difference between a linear & circular approach. summary A Duarte-Slidedocstemplate section 06 "“A corporation is a living organism; it has to continue to shed its skin. Methods have to change. Focus has to change. Values have to change. The sum total of those changes is transformation.” Andrew Grove. Intel
  12. 12. Please attribute SmartWerke with a link to: www.smartwerke.com This work is licensed under the Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/
  13. 13. coordinates For more information & consulting based on the content, please contact: Philip Thomas info@ optumplus.com 1 778 724 0233 www.optumplus.com www.smartwerke.com thank you

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