Product stewardship A new business model selling services not products

1
Product stewardshipA new business model -
selling services not products

• Jerzy Filar, Stuart Clement, Stephen Pullen and
  David Ness
• Product Stewardship Group

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Introduction

• Making better use of products resources
• closed loop processes
• Rental / service contracts may facilitate
• Prelim research carpet case study
• Encouraging findings
• win-win for business environment
• Further research needed
• Integrated ISST research theme?

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Research aims

• Highlight differences in revenue to manufacturer
  over several service periods
• differences in greenhouse emissions landfill
  waste
• associated with procurement options
• purchase
• lease-to-buy
• rental

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Research method

• Case study Interface carpet tiles
• Probability of repeat contract take-back at end
  each service period (7, 14, 21 years) for various
  procurement options

Rental - low probability of missing out
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The Mathematics

• In view of the above, the
• Expected revenue (ER)
• Expected amount of waste to landfill (EL)
• Expected greenhouse gas emissions (EG)
• can be parametrised with a single parameter pi
  i1,2,3. Eg., if Vj is the value of contract
  in period j, then

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Waste saving (PVC)
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Emissions savings
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And, remarkably.Revenue benefits
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Indicative findings
Renting has advantages over lease- to-buy and
purchase not only in terms of environment
(emissions waste) but also revenue to
manufacturer
Encouraging ! more research
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The exciting possibilities!

• New business model
• Product service systems (PSS)
• Collaboration UTS, SA Gov, Vienna Uni
• Some applications

• Fuji Xerox copying service
• Electrolux laundry service pay-as-you-wash
• Green wheels car sharing, Nike bike
• Agricultural machinery services
• Air conditioning services

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Research strands
Ref Yashiro 2003

• Cultural aspects, attitudes
• Social employment generation
• Business shift from products to services
• Environmental resource productivity, LCA
• Design disassembly, adaptability
• Asset management
• IT virtual models, 4D CAD, wireless tracking
• Lean, clean, green supply chains

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Closing comments

• Early research findings encouraging
• Funding to support further investigation
• ISST integrated research theme of PSS spanning
  various research projects
• Foster collaboration with others eg ATN
• Thankyou !