Developing a Circular Business Model for plastic parts production
Published on 16 May 2018
Norway
Trøndelag
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About this good practice
The company Plasto produces plastic components in the business-to-business (B2B) market, and decided in 2014 to investigate the strategic advantages of what the company calls ‘circular material streams’. As of June 2017, it established the long-term goal of using 50% recycled materials in one of their product groups.
The case focuses on recycled plastic materials and implications for Plasto’s supply chain. This reflects a circular business model (CBM) development process that aims to create value from waste by means of recycling.
Implementing this practice requires extensive external, interaction and collaboration with stakeholders and actors in the supply chain. The main stakeholders and beneficiaries are the same, namely the collaborating actors in the value chain, working to establish this circular business model.
The case focuses on recycled plastic materials and implications for Plasto’s supply chain. This reflects a circular business model (CBM) development process that aims to create value from waste by means of recycling.
Implementing this practice requires extensive external, interaction and collaboration with stakeholders and actors in the supply chain. The main stakeholders and beneficiaries are the same, namely the collaborating actors in the value chain, working to establish this circular business model.
Resources needed
The project has required extensive network and commitment between interested parties on a human capital level. It is based in the SISVI project, a four-year knowledge building project funded by the Norwegian Research Council and industry partners with a budget of EUR 2.2 million.
Evidence of success
This practice is still not fully implemented, but the potential benefits are numerous. Environmental burden from producing virgin plastic will be significantly reduced, along with cost and environmental burden of transportation. Although Plasto has not yet reached the goal of 50% recycled material as inputs to their products, they have invested financial and human capital into quality testing of their recycled plastic products.
Potential for learning or transfer
This practice represents a very innovative way of thinking. The potential for learning and transfer of knowledge from this practice looks good, because there are so many potential benefits. The collaboration within supply chains like in this practice is mainly limited with regards to outreach and communication, and these are areas where experiences and knowledge can be transferred between different fields of industry.
Good practice owner
Organisation
NTNU - Norwegian University of Science and Technology
Norway
Trøndelag
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