This presentation gives an overview of the meaning of Circular Procurement and explores concepts and ideas related to the topic, including references to circular procurement examples.
Presented by Christine Storry - PIPEN Project Manager
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Circular Procurement - An Introduction
1. Circular Procurement –
An Introduction
Presented by
Christine Storry – PIPEN Project Manager
South West England
2. To recap
Sustainable procurement takes into account
– Economic )
– Social ) issues
– Environmental )
• Within procurement and
• In balance with each other
Life Cycle Costing considers
– Acquisition )
– Operation )
– Maintenance ) costs
– Disposal/end of life )
• As the full value of a contract
4. Circular economy
In essence…
• Moving away from ‘take, make, dispose’
• Waste as a product – with value
• Designing in reusable value
• Designing in longevity
• Designing in durability and repairability
• Leading to…
• …Circular Procurement
5. Circular procurement
• No agreed definition of circular
procurement
• Products procured follow the principles
of circular economy
• Reused in the product chain
• Closing material and product loops
• Thinking about the end – at the
beginning
• Circular demand creates opportunities
for circular supply
– Innovation
– Business opportunities and growth
• More than one approach to adoption
6. Focus areas for
procurement
Service instead
of product
•Lease –v- buy
•Manufacturer
retails control
•Manufacturer
has vested
interested
•Procurers only
pay for what
they use
Product design,
use and end of
life
•Consider use and
end of
life/contract
•Can products be
useful after use
•e.g. reused,
refurbished,
parts used again
Market
dialogue
•Greater
transparency
from all parties
•Mutual
benefits
•Knowing what
the market can
do
•Market
knowing what
is proposed
7. Examples of circular
procurement routes
• Supplier buys back
• Agreed price (at outset)
• Encourages reuse, refurb, remanufacture
Buy – sell back
• Sold to a third party
• For refurb, etc
Buy – re-sell
• Remains property of supplier
• Access is provided to product (eg, MFD, ‘pay
per lux’)
• Supplier has a vested interest
Product Service Systems
9. Behaviour change
• Different approach to procurement
• Wider view of impacts
• Improved dialogue internally and
externally
• To start with, don’t reinvent the wheel
– use what’s available
• Later on – go for it!
We can change
behaviours,
if we make change fun.
10. Circular procurement –
Life Cycle Costing
• LCC considers acquisition costs,
running, use and disposal costs
• Circular procurement considers
product characteristics with a view to
designing out waste
• Procurement can help define those
characteristics and adopt appropriate
procurement route and contract
specification
• Subsequently measured through LCC
– At needs analysis phase; or
– Tender evaluation
