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SPLC 2019 Summit: Circular Procurement in Practice: Public Sector Buyer Focus

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Circular Procurement
in Practice
Joan Prummel
Rijkswaterstaat
joan.prummel@rws.nl
Cuno van Geet
Rijkswaterstaat
cuno.van.g...

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Managing expectations
2 main take aways today
• Circular procurement is your own serious hard work,
there are no copy/past...

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Wednesday May 21, SPLC Summit
30
minutes
Welcome and introduction to the workshop
Circular procurement as a strategic tool...

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SPLC 2019 Summit: Circular Procurement in Practice: Public Sector Buyer Focus

  1. 1. Circular Procurement in Practice Joan Prummel Rijkswaterstaat joan.prummel@rws.nl Cuno van Geet Rijkswaterstaat cuno.van.geet@rws.nl
  2. 2. Managing expectations 2 main take aways today • Circular procurement is your own serious hard work, there are no copy/paste solutions • You'll know where to start tomorrow
  3. 3. Wednesday May 21, SPLC Summit 30 minutes Welcome and introduction to the workshop Circular procurement as a strategic tool • CE principles • How does procurement support the implementation of Circular Economy • Examples of CE • Lessons learnt in general (Netherlands and EU) 30 minutes 4 basic steps towards successful implementation of circular procurement • Ambition • Market engagement • Tendering and awarding • Contract management (5 minute exercise after each step)
  4. 4. The Netherlands 14 April USA 15 March 1 August
  5. 5. Humans are supposed to be intelligent, it's high time to prove it Janez Potočnik co-chair of UNEP-IRP and board member of WRF
  6. 6. Ensure sustainable consumption and production patterns - energy - carbon emissions - waste and littering - pollution - resources
  7. 7. Estimated benefits Circular Economy (TNO)
  8. 8. Circular economy is the missing piece in our climate agenda Sientje van Veldhoven Dutch State Secretary for Infrastructure and Watermanagement
  9. 9. Conscious Waste is an indicator of circularity
  10. 10. TECHNICAL PROCESS (COLLABORATION) FINANCIAL (REVENUE MODEL) • INTERNAL CO-OPERATION • EXTERNAL CO-OPERATION • LONG-TERM PARTNERSHIPS • … • REDUCING REQUIRED MATERIAL AMOUNT • DESIGN FOR DISASSEMBLY • EXTENDING PRODUCT LIFESPAN • … • VALUE AT END OF LIFE • LONG-TERM BUSINESS MODELS • SHIFT FROM PRODUCT TO SERVICE • … SOURCE: COPPER8 (2011) Circular reality Circular potential Potential vs reality
  11. 11. Circular Procurement
  12. 12. is the result of inputOutput
  13. 13. § Procurement is how products get into organisations § Every circular purchase leads to circular business activity: -> working circular business case <- Why procurement? § Procurement creates a market for circular products Circular procurement is a lever for circular economy
  14. 14. Relevance of public procurement? € 2 trillion
  15. 15. Conscious Circular Procurement = Influence the Chain
  16. 16. Alice - This is impossible! Mad Hatter - Only if you believe it is… Mad Hatter Slightly disturbed ('mad') character in the novel Alices Adventures in Wonderland
  17. 17. Company clothing Exam ple
  18. 18. Facts • In EU, approximately 75% of used textiles ends up in landfill/incineration • In NL 30 Kt of workwear and uniforms are annually thrown away by companies and governmental organisations • Used uniforms have higher quality then a new pair of jeans Exam ple
  19. 19. Potential impact of 30Kt: Exam ple
  20. 20. LCA on the yarns (80% recycled military uniforms) compared with a non recycled yarn • reduced water consumption: 87% • decreased energy use: 42% • reduction in CO2 emissions: 33% Exam ple
  21. 21. • Dutch MoD collects all their workwear • People with a distance to the labour market separate the collected textiles • Towls: 36% Overalls: 14% Lieutenant-Colonel Rob van Arnhem on site Exam ple
  22. 22. Furniture Exam ple
  23. 23. Organising the design and use of office furniture in a way that products and (raw) materials remain employable. Ambition Exam ple
  24. 24. § Extend life of current furniture by more intensive maintenance § Reuse existing furniture within government § Repair or refurbish (parts of) existing furniture § Circularity requirements when purchasing new furniture Goals circular category furniture Exam ple
  25. 25. Savings Exam ple
  26. 26. Lessons learned
  27. 27. 1 Benefits of circular procurement § Closing material loops § Less waste (sustainable and cheaper) § Cost savings in procurement § Stimulate (circular) economic activity § Benefits on other ambitions § Lead by example / credibility USPs
  28. 28. 2 Appreciate the chain
  29. 29. Change it one step at the time 100% ....but where to start?
  30. 30. 3 1. Product Service Systems 2. Product life extension 3. Resource recovery 4. Sharing platforms 5. Circular supply chain Business models Procurement concepts 3 main concepts: § buy - resell § product service systems § buy - sell
  31. 31. 4 Ellen MacArthur Foundation Butterfly Simplified Reality Interface / Geanne van Arkel products between sectors materials regional within sectors national international find solutions Collaboration =
  32. 32. 5 Circular procurement is NOT about purchasing alone…
  33. 33. The biggest impact is before procurement Preparatory stage Stage 1: Specification Stage 2: Selection Stage 3: Contract Stage 4: Order Stage 5: Monitor Stage 6: Servicing Utlisation Stage
  34. 34. 6
  35. 35. 1876 invention of the telephone products to last a lifetime 2007 first iPhone 2017 iPhone 8 -> 'X' Which one is the most circular?It depends…
  36. 36. 7 Magic formula…?
  37. 37. Exercise • Ambition • Market engagement • Tendering and awarding • Contract management
  38. 38. Exercise • What are your / your organisation's circular ambitions? • What products in your organisation can grow from circular potential to circular reality? TECHNICAL PROCESS (COLLABORATION) FINANCIAL (REVENUE MODEL) SOURCE: COPPER8 (2011) Circular reality Circular potential
  39. 39. • What does the supply chain of your product look like? • What are their options for circular improvements? Exercise raw materials supplier designer supplierproduceryarn supplier repair shop loundry user Alliander
  40. 40. • How to connect: - your organisation's ambitions - your client's needs - possibilities of the market • Which requirements and criteria to ask for? Exercise Preparatory stage Stage 1: Specificatio n Stage 2: Selection Stage 3: Contract Stage 4: Order Stage 5: Monitor Stage 6: Servicing Utlisation Stage
  41. 41. • Set up a RACI table and ask yourself when you will involve your contract manager - Responsible - Accountable - Consulted - Informed Exercise
  42. 42. A better world starts with a better question Cécile van Oppen Co-founder Copper8

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