Periodic Reporting for period 3 - ReCiPSS (Resource-efficient Circular Product-Service Systems)
Período documentado: 2021-06-01 hasta 2022-12-31
The White Goods demonstrator, Gorenje, has been practicing a linear business approach built upon the model of product sales and after-sales services for decades. As part of the ReCiPSS project, Gorenje aimed at implementing CMS based on 'pay-per-use' offering for their Asko laundry appliances and by exploring the potential of retaining the value of the appliances to an optimum level and for a significant longer time through repair and refurbishing.
The Automotive demonstrator, Bosch, has been in the business of remanufacturing of parts and components for decades but faces many challenges in the reverse supply chain of cores. As part of ReCiPSS project, C-ECO together with Bosch aimed at developing and implementing an innovative ‘core management-as-service’ offering with key focus on developing a part data management platform to improve the quantity and quality of core return.
The automotive demonstrator has implemented ‘core management-as-service’ offer at three wholesalers and collected more than 100.000 cores. The ‘core management-as-service’ includes both digital and physical services. The digital service is offered through the part data management platform that is developed in the ReCiPSS project. This platform has made reman-specific data collection, storing and sharing significantly efficient. This has also improved significantly the availability of information that is necessary for core sorting and selection. For example, a procedure for deriving recommended actions for wholesalers to proactively manage their options (surcharge associated with core return) portfolio is established, which is a result of the transparency generated by the ICT platform. The platform has greatly impacted core management efficiency. As part of the physical service, cores now can be shipped directly from the workshops to the remanufacturers bypassing the complex trade levels and the right stakeholder in the trade level could be compensated. Furthermore, the core selection is now possible to be centralized and organized by skilled labours obsoleting the need for multiple core selections at each trade level. This also opened up the possibility for better bundling of cores and shortening the logistics routes.
As a support to the implementation of the demonstrators, the project has brought significant innovation in business models, product design and supply chains. Several product design methodologies and modelling and simulation tools have been developed which not only well-prepared the demonstrators for the pilot phase but also for the scale-up in the future.
Similarly, the ‘core management-as-service’ offering that includes both digital and physical services is a breakthrough for the traditional reman business in the automotive sectors. Separating the economic incentive from the physical item, the possibility to bypass the trade levels in core transportation, single point core selections and a one-stop information management platform to collect all reman criteria by major Original Equipment Suppliers (OES) may sound trivial. These innovations have, in fact, changed the rules of the game of the automotive remanufacturing sector. All these innovations are made part of the automotive part data platform that is developed in the ReCiPSS project. The platform has enabled options tradeable among stakeholders opening up possibilities to source cores from the open market. Furthermore, the information regarding available options and the date of expiry has significantly reduced the financial risks for the wholesalers. Single-point core selection has reduced the core rejection rate significantly and eased the process of the payment of a surcharge to the right stakeholders at the right time. The single-point core selection also means better bundling of cores and the possibility to transport cores directly from the workshops, resulting in efficient logistics. All in all this has improved the quality, quantity and timing of core return to enable CMS.
The demonstrator has shown that a saving of approx. 70 % in transport costs per core can be achieved through efficient core selection and better bundling. This has led to cost savings of up to €500,000 during the demonstration phase which could be projected to €180,000,000 per year if scaled up. The demonstrator has also shown savings in CO2 emissions of up to 390 tons CO2 eq. during the demonstrator phase and 138,000 tons CO2 eq. per year if scaled up.