D4.2 Circular supply/value chains implementation report

This deliverable report 4.2 on the implementation of circular supply/value chains considers the reverse supply chain planning processes in the demonstrator phase for the automotive spare parts and the white goods demonstrator.

Regarding the automotive spare parts business model, a cloud-based platform was developed in a previous work package in the ReCiPSS project to increase the transparency in the reverse supply chain. In this report, it was determined at which stage of the reverse supply chain the cloud-based platform is implemented in order to improve the economic and ecological performance of the company.

Considering the white goods demonstrator, a new ‘pay-per-wash’ (PPW) business model was introduced. For the white goods demonstrator, the optimal locations for storing and remanufacturing the used washing machines were determined.
In this context, a new system for improving circular supply/value chains activities is developed for the automotive spare parts demonstrator and the white goods demonstrator respectively. The core idea of the system’s logic is to solve the above-described problem for both business models with the help of an ADD algorithm.

The behaviour of the systems is examined with the help of simulation. Regarding the automotive spare parts demonstrator, the economic and environmental performance of the as-is scenario, which represents the current business model is compared with the to-be scenario. Thereby, the to-be scenario achieves a higher fulfilment regarding the target figures ‘transport cost’ and ‘CO2-emissions’ than the as-is scenario. The target figure ‘transport cost’ in the to-be scenario could be reduced by 56.6 % compared to the as-is scenario. Also, the CO2-emissions in the to-be scenario could be improved by 10.6 % in comparison with the as-is scenario.

Regarding the white goods demonstrator, this report highlights the importance of determining the optimal location for storing and remanufacturing used washing machines in the new PPW business model. Thereby, the target figures ‘transport costs’, ‘service time’ and ‘CO2-emissions’ of the circular supply/value chain were exemplary determined for the Dutch market. By selecting optimal locations for the new business model, transport costs could be reduced up to 24,532.922 €, the service time could be reduced by six hours and up to 22,178.646 kg/t of CO2-emissions could be saved.