The Role of Circular Supply Chains. Kristine Kalaijian, Director Sustainability Philips North America April 27, 2016

Similar documents
Circular economy. Rethinking. the future Our transition towards a circular economy

Creating value through Sustainability

With Philips Azurion,

Circular Advantage: 4 key values 1 silver bullet...and Minority report. Tomas Haglund Flemström Copenhagen

Smart Strategies to Simplify Mobile Asset Disposition from the Global Leader in Electronics Reuse and Recycling

Unlocking Philips full potential

The Reusable Packaging Association (RPA) is a non-profit, member-based trade organization.

Circular Advantage Innovative Business Models and Technologies to Create

Safer, smarter, more sustainable

Creating the future of Healthcare through meaningful innovation. Gene Saragnese, CEO Healthcare Imaging Systems

Reverse logistics in the circular economy

Philips Capital Your one-stop financing resource. Philips Capital May, 2016

Capturing the HealthTech opportunity

Transforming your business

Creating Shared Value: Redefining the Role of Business in Society

Profitable growth through leading technologies and industry-wide expertise

Innovation & Expertise

Neue Generation von Textilfasern durch Recycling von Baumwollstoffen. Lenzing AG, S. Möderl

Manage more data, meet healthcare regulations and improve availability

Results Count LABWARE LIMS. LabWare LIMS. LabWare

Philips: a focused leader in HealthTech

Circular economy and textile fibres

How to Leverage AV Technology for Improved Performance

Lab Outreach Connectivity

Supply Chain Case Studies

New Product Innovation Leadership

How to become a Digital Predator

Philips Healthcare Accelerate! Transformation. Greg Sebasky, Executive Vice President Business Transformation, Philips Healthcare

Delivering Value Across the Supply Chain

Winning in light sources. René van Schooten

C2CPII Built Environment Team.

PEAK NETWORK PERFORMANCE

How Businesses Can Support a Circular Economy

This paper outlines the case for the circular economy, and highlights how organisations can turn circular in their investment in print technology.

2013 North American M2M Communications Competitive Strategy Leadership Award

GE Healthcare. GoldSeal. Refurbished imaging systems. Reliable quality. Certified confidence.

Philips: Delivering innovation that matters to you. Brian Hinman Chief Intellectual Property Officer CEO, Philips Intellectual Property and Standards

Value of light to society. The roadmap Reason why. Strategic Roadmap 2025 of the European Lighting Industry

MANAGEMENT OF ELECTRONIC WASTE IN THE UNITED STATES

2017 Global Healthcare Enterprise Partnerships Market Leadership Award

Sustainability for Facilities and Waste Management. Nick Mannie

Optimized for Growth:

Long-term maintenance agreements. Ari Telama, VP, Mill Improvements June 14, 2016

The world leader in serving science. DataSafe Solutions. Protect your valuable laboratory data

WHERE WILL THE WORKFORCE MOBILITY REVOLUTION TAKE YOU?

Ecodesign and Energy Labelling. for a circular economy

Learn more about the many ways The Swift is eco-friendly throughout our building and surrounding area and how you can do your part!

AFTERMARKET Support and Services Putting Integrity into Asset Management

Your journey to a circular business

Valmet unique offering with process technology, automation and services. Investor Lunch March 17, 2016 Kari Saarinen, CFO

EUROPEAN MEDICAL TOURISM & GLOBAL HEALTHCARE CONGRESS May 14-15, 2018, Athens, Greece. A Global Healthcare Resources Event

Beginning a Business Sustainability Plan

PLASTICS IN A CIRCULAR ECONOMY - KEY CONCEPTS

The transformation journey of Philips

CBRE INDUSTRIAL & LOGISTICS ADVISORY & TRANSACTION SERVICES

DLL Lifecycle Asset Management Simple and sustainable IT Lifecycle management. See what counts.

A better tomorrow for everyone

LASTING CONNECTIONS. Best-in-class professional services for the hospitality industry. TRANSFORMING HOSPITALITY BY BUILDING

PRESS RELEASE. At Arab Health 2015, Agfa HealthCare showcases how its solutions meet the evolving needs of the Future of Radiology

CONSTRUCTION SOLUTION (CIS MODULE INCLUDED)

Unlocking hidden value. Electronics Reuse and Recycling Strategy ( )

Mining Field Services. Making the big difference for our customers

Capital and Non-Medical Category Tower Providers Questions and Answers

Core Values and Concepts

Remanufacturing Terminology

AN INNOVATION CENTER IN SUSTAINABLE TECHNOLOGY FOR THE ELECTRONICS INDUSTRY. Carlos Ohde. November, 2017

To unleash LeasePlan s potential in an exciting and dynamic market, we have defined a three-year strategic plan. Our strategic plan has three goals:

62 63 s y 6. Ke figure

Oracle Accelerate for Food and Beverage. An Oracle White Paper November 2007

(NYSE: AYI) COMPANY PROFILE NOVEMBER 2017

800+ employees. Founded in. Headquartered in. Capital of For-Profit Healthcare. Balanced Customer Base

Europe s largest Aeronautics Research Programme ever Environmental objectives, mainly CO 2 and noise reduction (from ACARE) 1.6B value, split 50/50

2025 Sustainability Goals

CURRICULUM SUMMARY COURSE DESCRIPTIONS & OUTLINES MENU MANUFACTURING INDUSTRIES INTRODUCTION TO MANUFACTURING OTHER INDUSTRIES ENERGY INDUSTRIES

Global Workforce Analytics: The Next Big Thing? Featuring: Linda E. Amuso Radford Dan Weber Radford

Corporate Presentation & Offer for SAP ATTP December 2015

How to Make Money with LEED for Homes

RE-USE AND REPURPOSING OF UNDERUTILIZED BUILDINGS: STRATEGIC PLANS FOR COMPETITIVE RESEARCH ENVIRONMENTS

GLOBAL CITIZENSHIP AT STARWOOD

UBS Global Life Sciences Conference

How can material efficiency strategies be adopted by industry and create new business opportunities?

Senior Vice President and Chief Accounting Officer

LICENCE TO PRINT Computacenter helps organisations minimise costs and maximise productivity with flexible print solutions PRINT SUPPLY

WE ARE YOUR PARTNER IN MATERIALS HANDLING

Beyond Hardware to Solutions

Moving forward in reverse Why reverse logistics needs a dedicated channel

Circular Procurement. CIPRON project: Finnish Environment Institute IVL Swedish Environmental Research Institute Copenhagen Resource Institute

Asset and Plant Optimization in a Connected Enterprise

Benefits of an Energy Audit

SAS ANALYTICS AND OPEN SOURCE

Sustainability at Rexel

Unfolding our Environmental Promise. Everywhere You Live and Work

Services and Support. System design. Hardware. Installation. Peace of mind. Digital Signage

Joyce Mullen. Our Commitment to You. Joyce Mullen. President, Global Channels, OEM Solutions and IoT

Addressing healthcare challenges through innovation

PPPS IN THE SOCIAL SECTORS: EDUCATION AND HEALTH

NUANCE COMMUNICATIONS CUSTOMER SUCCESS STORY

PERFORMANCE-BASED REGULATION

Environmental Performance

Transcription:

The Role of Circular Supply Chains Kristine Kalaijian, Director Sustainability Philips North America April 27, 2016

We strive to make the world healthier and more sustainable through innovation We re aiming to improve the lives of three billion people a year by 2025

Present in More Than +100 Countries Philips has 60 R&D sites and manufacturing in all continents North America Employees: 22,989 R&D centers: 20 Manufacturing sites: 32 Asia Employees: 40,049 R&D centers: 10 Manufacturing sites: 21 Latin America Employees: 7,910 R&D centers: 2 Manufacturing sites: 6 EMEA Employees: 34,417 R&D centers: 28 Manufacturing sites: 28 1 Source: Philips Annual Report 2014.

Making a difference across the health continuum 275 million patients tracked with our patient monitors in 2015 Last year 6.5 million people improved their oral health with our oral healthcare products 21 petabytes of imaging study data managed for healthcare providers 1,000,000 patients monitored in their homes every day 101 million lives improved globally through access to diagnostic X-Ray 250 million appliances sold each year making homes healthier Hundreds of thousands of people tracking their health with ActiveLink

We are unlocking value through circular economy principles For a sustainable world, we see the transition from a linear to a circular economy a business necessity for now and the future. A circular economy aims to decouple economic growth from the use of natural resources and ecosystems by using those resources more effectively. We work on recycling, improving product recyclability, refurbishment and new business models.

The four enablers for a circular economy business models design collaboration reverse logistics

Philips believes that global trends make a circular economy a business necessity for now and the future. Here are a few examples

The global trends that make a circular economy a business necessity for now and the future Challenges Resource availability and pricing Increase in middle class consumers

The global trends that make a circular economy a business necessity for now and the future Opportunities Big data Changing legislation and governance Changing models of consumer consumption Moving from transaction to relationship

Strategies and activities within our businesses

Circular Economy Strategy Health Systems Trade-in Higher and faster socket retention Parts Harvesting Certified quality parts for re-use Lower service costs Refurbished Systems Protect price points Additional market segments Valueadding services From servicing equipment to servicing customers

Refurbishing solutions for MRI systems Philips Healthcare, 2014 Due to limited MRI renting capacity in the University Clinic in Lübeck,the Gross Grönau radiology department decided to purchase their own MRI system while keeping their budget considerations into account. MRI systems in the Diamond Select program provide access to performance levels of latest state-of-the-art Philips technology for a more affordable price. With the Diamond Select program, this relatively small radiology practice did not exceed their budget, whilst they are able to set themselves apart from the other clinics. Philips gives pre-owned certified components a second life: the 3000 kilo magnet is refurbished and certified for serviceability period of at least 10 years, and the system is fully upgradeable. The refurbished MRI systems reduce up to 50% energy consumption by PowerSave over comparable systems.

Circular Economy Personal Health Business Recycled plastics Reduce environmental footprint Cost savings Service / repair Reduce cost of non-quality Increase customer touch points Business models Cascaded use Repurpose market returns Parts harvesting Enter new markets e.g. Africa Access over ownership Capture business in new market segments, e.g. hospitality

SENSEO Up - Built from Recycled Plastics Inner frame (not visible) 40% Post Industrial Recycled glass fiber reinforced polypropylene Baseplate 90% recycled ABS from Post Consumer E-waste Total: 13% recycled plastics / 20% cost savings

Circular Economy Strategy Lighting Solutions Light as a Service Market leadership in Lighting Performance Contracts Design Upgradeability, serviceability Portfolio of indoor & outdoor lums Sales tools Develop value calculators per segment for customer discussions 2 nd hand market Develop market for used parts and lums reuse for overall credibility

Light-as-a-service North America Lighting upgrade to 25 parking garages in WMATA (Washington DC, USA) transit system Over 15.000 LED fixtures with wireless controls Ownership of the installation remains with Philips 11 year initial contract for managed services Improved modular product design to support maintenance and upgradeability

For a sustainable world, the transition from a linear to a circular economy is essential. A circular economy aims to decouple economic growth from the use of natural resources by using these resources more effectively. Fransvan Houten, CEO, Philips

Procurement Strategies and activities Procurement is a key driver in the transition toward embracing the concept of circular economy

Circular Procurement Different Levels Design-in Philosophy - DfX Suppliers located at manufacturing Non-product procurement

Design-in Modularity Core remains the same Upgradability Re-use previous design as much as possible 20 Philips North America

Suppliers in House Supplier at Philips manufacturing site Authorized repair center Recycle, reuse Saves time, money, carbon footprint 21 Philips North America

Non-Product Circular Procurement Asset Recover HP IT Hardware 1 HP pre-defined Selected laptops 2 Initial User Usage Phase 3 Refurbishment 4 Second User Usage Phase 5 Third User Usage Phase 6 E-Waste

HP Asset Recovery Services Program at Philips Managed so far over 60,000 assets across 22 countries and 4 continents Covers activities from data wiping through marketing and recycling Remarketed 90% Full recycling service for remaining 10%

Our partnerships include:

Driving circular thinking in Philips through Generating proof points & metrics Thought leadership and collaborations Driving internal engagement Embedding in Philips processes

The Closed Loops of the Circular Economy 1. Service Maintenance & repair agreements for Philips Equipment. Service support based on specific requirements which allows to optimize customer and financial result. Technology upgrades; The latest software releases to keep technology current and extends the life of medical systems Parts supply Manufacturing Distribution User Mining/materials manufacturing Collection Service Refurbish Reverse Supply Chain Recycle Part harvesting Building Blocks Design Collaboration New business model 2. Refurbishment A process of returning a product to good working condition by replacing or repairing major components that are faulty or close to failure or EOL, and making cosmetic changes to update the appearance of a product, such as cleaning, changing its fabric, painting or refinishing it 3. Part Harvesting Part harvesting is the activity of harvesting components and parts that are recovered from equipment for redistribution as spares, parts for servicing and maintenance or resold to return. It saves costs by reducing the requirement for purchasing brand new components 4. Recycling Functional recycling: A process of recovering materials for their original purpose or for other purposes, excluding energy recovery. Downcycling: A process of converting materials into new materials of lesser quality. Upcycling: A process of converting materials into new materials of higher quality and increased functionality

Refurbishing Solutions for MRI Systems Systems rebuilt and tested according to manufacturers specifications New vacuum components Customized configuration Latest software upgrades Latest hardware upgrades Original parts 60-85% of new price Same guarantee as new