Greening from the front to the back door? Investigating the varieties of chemical and resource management services

Markku AnttonenHelsinki School of Economics

Presentation at the GIN-FSI conferenceJune 26th – 28th Leeuwarden, the Netherlands

June 28th 2008

Background: Part of the second MASCO - Material Efficiency Services project

Management service for material flows Management of selected material group is outsourced to service provider

Material efficiency consulting

MASCO model provider takes care of the material savings investment project so that client neither invests own funds nor operational resources

Material savings as additional service

Same but provider offers MASCO-services aside of its core business

June 28th 2008

This study

• Reviewing and analyzing the services of 38 chemical and resource management service providers.

• Constructing ideal types as service profiles for these services

• Deepening the understanding of these services for future research.

June 28th 2008

Full house

Front door ICT-based safety and supply

In houseEntering from the back door

Approaches from: Sourcing, vendor management, purchasing, incoming material storage, delivery (point of use), usage planning & management, data, reporting,

Approaches from: Operating & managing chemicals in customers manufacturing lines or certain parts of the line

Approaches from: Waste hauling, recycling, data collection, reporting, etc.

Service models I

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Service models II

1. Front door; streamlining supply side management. These services are closely related to supply side management or inbound logistics management of chemicals.

2. In-house; managing chemicals in production processes. The services in this group concentrate on operating processes and increase the process efficiency in the customers’ production facilities.

3. Safety and supply management using ICT includes services based solely on different ICT and software based solutions and services.

4. Full house of services includes services that are integrated from front to back door.

5. Entering from the back door; Resource management services concentrate on improved waste avoidance and material efficiency from the waste management or downstream side of the supply chain.

June 28th 2008

Case examples from regional point of view

Würth & Ekokem KIES

June 28th 2008 Regional service centers Reference: Piirainen, 2007

KIES service concept

Utilization of industrial side streams, for examplewaste containing Al and Fe, acids, alkyds and nutrient solutionssuch as phosphoric acid, etc.

Recovery and recycling

Direct use

Refining to be used asbasic material for water purification chemicals

Industrial customers

Local government customers

Industrial waste watertreatment plants

Combined waste water andsludge treatment plants

Municipal waste watertreatment plants

KIES

June 28th 2008

Case: Kemira regional service center at HAAPAVESI

watertreatment

plant

Thermicdrying of the sludge

Local energy

company

Production of water

purification chemicals

Recycling of industrial

side streams

Closed landfill

site

Waste lye

Kemiraregionalservice center

IndustrialCustomer a

LandfillOulainen

New clients

Pyhäjoki

Cleaner waste water

Aluminum precipitation

Industrialcustomer b

and Haapavesi

Reference: Piirainen, 2007

June 28th 2008

Safety@WorkChemicals auditing• Usage – present/target• Chemicals substitution• REACH-consultation• E&HS training & consultationDistribution/refilling/point-of-useProducts• chemicals, re-usable spray cans

(Refill) ja filling equipment (Refillomat)

• Pine-oil based chemicals by Teknoforest/Pine-Line (partner)

Hazardous waste management• Collection & hauling• Waste handling, recycling &

disposal• Metals recycling• Planning• Training, management &

consultation (waste, EH&S)

Pilot: Spray chemicals management & recycling• One contract for chemical spray waste hauling &

handling possible logistics integration: in- and outbound

Clewer® Rotating Bed Biofilm Reactor(RBBR) for wastewater treatment

Future bossibilities?

Finnish defense forces/Armored Brigade

June 28th 2008

Providing already chemical management services or other materials efficiency servcies and willing and able to develop it’s services towards that

Providing:• Collection & hauling• Waste handling, recycling

& disposal• Metals recycling• Training & consultationWilling to develop towards resource management

Any chemicalDistributor or...

CUSTOMER

Any environmentalservice company...

For SMEs: Co-operation through supply-chain and life-cycle

Other partners...

June 28th 2008

Conclusions

• Re-organizing supply-chain and responsibilities -> sustainable business

• Varying focus of the services – somewhat different efficiencies created in each service concept

– Enhanced procurement, warehousing and delivery– Manufacturing process efficiencies– Streamlined waste management and other environmental

services• Contextualized business models for different services

and companies– targeted co-operation, for example SME, public organizations– targeted service development (role and competences) through

the supply-chain)– humble beginnings– Long term approach

• Look for market demand and operational feasibility• Look for business logic innovations and how to

integrate them with eco-efficiency