Call Girls In Panjim North Goa 9971646499 Genuine Service
Adopting a closed loop system: recycled plastics in your supply chain
1. Adopting a Closed-loop System:
Recycled Plastics in Your Supply Chain
Reduce your carbon footprint, maintain quality, and reduce operating costs.
Manufacturing companies Today’s consumers have more choices One industry that can benefit a
are missing an opportunity than ever before and have become great deal from changing consumer
increasingly particular with their preferences and reduced costs of
to decrease their carbon selections. At the retail shelf, many recycled plastic is the manufacturing
footprint while also consumers now make decisions based industry. Manufacturing companies
reducing their operating not only on quality, brand recognition can now mandate changes in their
costs. By teaming with and price, but also on a product’s raw materials choices, and in turn,
perceived environmental impact. can increase their supply chain
Capgemini Consulting Consumers want products that are effectiveness. Our belief is that new
and specific alternative responsibly and sustainably made, alternatives to traditional packaging
resin manufacturers, and are remarkably responsive to the – such as cellulosic ethanol based
manufacturing companies media’s perception of the products plastics – can bring opportunity to
they consume. the industry as a whole in the near
can design and implement future. Some examples of companies
a closed-loop supply chain Historically, the industry perspective has that have committed to the use of
system. This process been that although sustainability efforts such technologies include Coca-Cola1,
improvement can provide a are important, the cost benefit would Nestlé2, Danone3, Heinz4, Toyota5,
not justify the changes in production Ford6, and Proctor and Gamble7, to
significant portion of cheaper, methodology. However, with industry name a few. However, another strategy
recycled raw materials in advancements in alternative and recycled that is available to fulfill the current
order to decrease costs, plastics, the cost limitations are suddenly market need is recycled plastics.
increase operational moving in the opposite direction. With
consumers demanding sustainable goods
effectiveness and decrease and the media backing these preferences,
environmental impact. companies can no longer afford to
ignore creating environmentally
friendly products.
2. The Opportunity company that generates $5 billion in savings by utilizing quality recycled
The future is a closed-loop system revenue per year, this can equate to resins rather than traditional, virgin
that allows the waste from the an annual savings of $10-20 million plastic alternatives.
end-product to be reintroduced in packaging and resin costs for
through recycling into the beginning companies that use PE, PP or PS Capgemini and Retailers/
of the process. By implementing a plastic resins.9 End Users
closed-loop system, manufacturing Manufacturers are not the only
companies can reduce one of their Capgemini and Manufacturing companies that can directly benefit
largest costs — raw materials. To help companies capitalize on from the closed-loop system. Retailers
these savings, create further brand and end users also stand to realize
Additionally, some virgin plastic loyalty and increase sales, Capgemini significant cost savings by working
resin has become more expensive works with manufacturing clients to with Capgemini. Traditionally, these
than some recycled plastics. Virgin enhance their operations, discover companies and institutions have had
plastic resin is derived primarily cost-saving opportunities and create to pay for their waste to be removed.
from oil derivatives and therefore, relationships with their strategic With Capgemini and a closed-
fluctuates in price accordingly. recycling partners to implement a loop system, retailers and other
Recycled resin offers a product closed-loop supply chain. organizations can now sell their
with comparable quality at a price plastic trash to haulers, who then
reduction of 10-30% depending With these processes, technological take it to a recycling partner and
on the polymer, and additionally advancements, and the right convert what was previously an
protects against significant price partnerships, manufacturing expense into a revenue stream.
fluctuations.8 For a manufacturing companies can realize significant
Capgemini and Recycling
Figure 1: Closed Loop Eco-System
Billions of pounds of plastics are
consumed in the U.S. each year,
and a very small percentage is
recovered for recycling efforts.10
However, that statistic is changing
and more recycled plastics are being
developed thanks to the efforts of
many recycling companies. One such
company, and one of Capgemini’s
strategic partners, is NextLife®,
a leading provider of sustainable
solutions for the consumer packaged
goods (CPG) industry.
NextLife® produces FDA-approved
recycled resins for food grade
plastics and other purposes. A recent,
independent life cycle analysis on
NextLife products showed a 70-80%
reduction in carbon footprint on plastic
resins purchased from their plants. It
is estimated that 10-30% in average
Closed-Loop System: savings can be obtained through the
Capgemini Consulting manages the relationships involved in analyzing, planning and
successfully implementing the above closed-loop system. use of strategically-sourced recycled
1. CPG company sells end product to retailer/vendor/end user resins, in comparison to virgin resin
2. Retailer/vendor/end user collects packaging from its customer/client/patient, accomplished alternatives, when accompanied by
through various methodologies specific to each business case
3. Hauler/waste company collects plastic waste for transport to recycling partner, saving the right partnership.11 The company,
retailer/vendor money on disposal costs currently led by the former CEO of the
4. Recycling partner goes through proprietary processes to develop FDA-approved recycled plastic
resins that are sold back to CPG company to produce end product world’s largest plastic cup manufacturer,
supplies its recycled resins to some
3
3. of the largest plastic producers in the country’s largest waste management Environmental Footprint
world, including Styrolution and other companies and haulers are poised to Assessment (EFA)
industry leaders. improve their environmental impact.
Capgemini is prepared to assist CPG,
Capgemini utilizes patented
Capgemini provides the strategic manufacturing organizations and
relationships and detailed execution industry leaders in taking the first approaches to calculate a
to bring together manufacturing step to savings and sustainability. company’s environmental
companies with both their downstream footprint assessments.
and upstream partners, helping to Capgemini Consulting is a global
The results are intended
benefit all parties involved, while leader in helping businesses
reducing environmental impact. develop strategies to improve to enable manufacturing
Capgemini can help establish a closed- operational effectiveness. companies to target areas
loop system by linking major CPG or for change, as well as
manufacturing companies with their Capgemini provides the support to guide
largest retailers/distribution centers, and
to understand internal
every step of the closed-loop system and
enabling them to purchase back the recommends a three-tier approach to environmental perspectives
recycled plastics that they originally sold collaborating with clients in addressing and priorities, allowing
to their consumer base via a third-party the sustainability opportunity: the organization to gain
recycled plastic resins manufacturer. n Opportunity Assessment
Closed-loop systems now make n Roadmap Development and
a comprehensive look at
financial as well as environmental sense. Organizational Alignment its carbon usage across
n Implementation and Monitoring specific products, or its
By incorporating a patented process, whole supply chain.
strategic relationships, and ultimately Closed-loop
a closed-loop system, recycled plastic Opportunity Assessment –
resins are now a viable option for the Capgemini’s Approach
CPG and manufacturing community For manufacturing companies that
in a variety of diverse environments. seek to venture beyond understanding
There are also opportunities in the their current sustainability profile
healthcare, government/education and make a lasting organizational
and automotive industries as well change, Capgemini provides the tools
as major food and distribution and support to develop a strategy that
companies. In addition, some of the not only can reduce environmental
Phase 1 Phase 2 Phase 3
Closed-loop Opportunity Roadmap Development and Implementation and
Assessment Organizational Alignment Monitoring
First, Capgemini conducts an assessment Once the closed-loop opportunity has In Phase 3, Capgemini is directly
of the company’s supply chain, as well as shown sufficiently attractive, Capgemini involved in launching and overseeing the
an Environmental Footprint Assessment. works with the client to develop an closed-loop program detailed in the
After all the data has been reviewed, actionable, cross-functional, roadmap. Capgemini also monitors the
Capgemini provides a detailed analysis cross-partner roadmap, and generates initiative and recommends adjustments
of the company’s operations compared organizational buy-in for improved as necessary to promote the effective
to leading-practice benchmarks. Finally, sustainability. Capgemini employs a capture of expected value.
a robust business case is developed to unique accelerator called the
create a complete picture of the Accelerated Solutions Environment
organization’s closed-loop opportunity. (ASE) to help realize these objectives.
Many of Capgemini’s successful client
projects have leveraged the ASE for
cross-organization blueprinting and
organizational alignment in major
transformation programs.
Adopting a Closed-loop System: Recycled Plastics in Your Supply Chain 4
