SUPPLY CHAINS & THE CIRCULAR ECONOMY. David Gonsalvez Presentation at Edge Forum for SMEs, July 7, 2018

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1 SUPPLY CHAINS & THE CIRCULAR ECONOMY David Gonsalvez Presentation at Edge Forum for SMEs, July 7, 2018

2 The Economy NON- RENEWABLE RESOURCES RENEWABLE RESOURCES THE ECONOMY RECYCLED REUSED REMANUF RESOURCES USER WASTE DUMPED IN LANDFILL, OCEAN or AIR

3 The Circular Economy NON- RENEWABLE RESOURCES RENEWABLE RESOURCES THE ECONOMY RECYCLED REUSED REMANUF RESOURCES USER WASTE DUMPED IN LANDFILL, OCEAN or AIR

4 The Traditional Supply Chain EXTRACTION MATERIALS PARTS MANUFACTURER DISTRIBUTION RETAIL USER LANDFILL

5 The Supply Chain in a Circular Economy EXTRACTION MATERIALS PARTS MANUFACTURER DISTRIBUTION RETAIL RECYCLE REMANUFACTURE REFURBISH REDISTRIBUTE RESELL 2 nd HAND USER USER MAINTENANCE COLLECTION ENERGY LANDFILL Source: Balancing Green by Yossi Sheffi

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7 SAICA is the leading paper manufacturing group in the South of Europe;

8 Over 2.5 Million Tons Production; Using only Recycled materials Recovered paper Paper mills Paper Recovering centers Cartonboard factories 8

9 Saica Natur s mission is to ensure the best waste management services to clients and the main raw material to Saica s paper mills 112 plants 9300 employees 9 countries $ 3.0 Bil Revenues 2,7 M tons Waste Recovered 2,5 M tons Paper Produced 2000 GWh Energy Sold 9

10 Saica Natur is a key player in the waste value chain Origin Recovery and logistics Pretreatment and classification Recycling and preparation of SRM 1 Waste to value processing Disposal Homes / Munipalities Selective collection Composting Waste to value for agriculture Classification and storage Preparation of SRM Industry Industry / Distribution Waste collection Treatment of hazardous waste Inertisation of hazardous waste Waste to Energy Our objective: Zero Waste (1) SRM: Secondary Raw Materials Landfill 10

11 Clients is the market leader not only in market share but also in the quality of their clients Industry and Services Distribution Press and Publishing Public Sector Council Madrid Council Barcelona Council Málaga Council Zaragoza Council Burgos Council Tarragona 11

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16 VIGGA A Circular Subscription Concept Monthly subscription fee 20 pieces of clothing in your child s size When clothes get too small, return them and they are replaced with one size bigger Returned clothes are inspected, professionally washed, and ready to go to another baby! Benefits: Reduces textiles waste, but also incentivizes manufacturers to produce higher quality clothes!

17 The Circular Economy European Union: By 2015, the target for end-of-life vehicles reuse and recovery is 95% European Union: By 2030 all plastic in packaging must be recyclable Michelin: By % of tires recycled

18 Why do it (i.e., the Circular Economy)? DON T Just Do it. (no matter what Nike says!) It benefits the earth, society, future etc. but Do it because you make money by doing it! (If you don t make a profit doing it, you won t be around to do it!) Be passionate but it helps to have a business case

19 WHAT YOU CAN DO NOW! Source: Eurobarometer SME s, Resource Efficiency & Green Markets

20 WHAT YOU CAN DO NOW! Understand your customer segment and create new markets (e.g., Whole Foods, Viggo) Use new sustainable materials (e.g., Patagonia) Be Innovative in your processes (e.g., Nucor, Saica)

21 Malaysia Institute for Supply Chain Innovation (MISI) Launched in March 2011 Joint initiative between Government of Malaysia and the Massachusetts Institute of Technology (MIT) Mission: Graduate education, Research, Industry Outreach in Supply Chain Management & Procurement

22 MIT Global Supply Chain And Logistics Excellence (SCALE) Network 6 Centers Alumni Worldwide 60+ Faculty & Researchers 100+ Corporate Partners An International Alliance of Leading Research and Education Centers Dedicated to Supply Chain and Logistics Excellence Through Innovation 22

23 Thanks! David Gonsalvez