Shaping the Future
Supply Chain Design
Supporting the Circular
Economy
Dr Donato Masi
Assistant Professor
Donato.Masi@Warwick.ac.uk
Agenda


Circular Economy: What’s new?
Business Models Design & SC Design
– Access and Performance Model
– Extending Product Value
– Extending Resource Value
– Industrial Symbiosis
2
Circular Economy: What’s new?
Slowing
resource
loops
Recycling
Extended
Product
Life
Green
Economy
3
Industrial
Ecology
Strategic
Level of
Business
Model
Innovation
Closed
Loop
Economy
Closing
resource
loops
Resource
efficiency
Business Models Design &
Supply Chain Design
Value
Strategy
Proposition
Supply
Chain
Business
Model
Value
Capture
4
Value
Creation
Infrastructure
Operating
models
Access and Performance Model
“…the only brand
that works
completely
according the
principles of the
circular economy”
Service
Delivery
Pricing
per unit
of
service
Services
for users’
needs
S
Retailer
SC
I
5
OM
Extending Product Value
‘As new’
product
• 30-50% less expensive
• 70-80% less energy
• Synergies or trade-offs?
Exploit
residual
value
Reduced
costs
Products
S
CLSC
SC
I
6
OM
Extending Resource Value
‘Green’
product
Exploit
residual
value
New
forms of
value
Recyclebank members
increasing recycling levels
three times faster than
national average
Resources
S
CLSC
SC
I
7
OM
Industrial Symbiosis
Processorientated
solution
Kalundborg
Industrial Park
Direct or indirect
economic returns?
Residual
outputs as
feedstock
Joint cost
reduction
Collaborative
Agreements
Comparative index cost profile for steam
production
Stand
Stand
IS Sol
Alone 1 Alone 2
Price per
100
108
100
ton
Total
100
174
120
Investment
S
SC
I
8
OM
What do supply chains need?
S
S
Alignment
Misalignment
I
I
9
OM
OM
Thank you !
Dr Donato Masi
Donato.Masi@Warwick.ac.uk