Managing Supply Chain Risk through facilitated Industrial Symbiosis

International G7 Workshop on Industrial Symbiosis

G7 Alliance for Resource Efficiency

Andy Whylehttps://www.linkedin.com/in/andywhyle

Ricoh UK Products Ltd

Worldwide sales of $23billion

(£14.6 billion) year end March 2012

No 1 Share of Global MFP Market

100,000+ Employees Worldwide

Market Leader since 1936

200+ Countries & Regions

Who are Ricoh?

CEO Environmental Leadership

• “As the global environment is in critical condition,

business communities are expected to take a

leadership role in building a new social paradigm.”

(S. Kondo 2008)

• “ ….. customer expectations of RICOH will evolve

into long lasting trust. They will realize that the

RICOH Group truly lives up to its "Harmonize with

the environment" value. In this way, the RICOH

brand will grow in society. “ (M Sakurai 2011)

“What makes Ricoh great is not only our superior

technology, but it is also our culture of innovation”.Zenji Miura (CEO, Ricoh Company Ltd)

The RICOH Way

Production System

Strategy: Building a Sustainable Society

Eco-centric

Techno-centric

Ricoh Group's global environmental

conservation: Keeping environmental impact

within the self-recovery capabilities of the Earth

12

2050 Long term

Environmental vision

Reducing Impacts and

increasing self recovery

Sustainable Procurement Circular Economy

Ricoh Comet Circle

© 1994 RICOH

Ricoh Global Manufacturing

■ Shanghai Ricoh Digital Equipment Co.,

Ltd.

■ Ricoh UK Products Ltd. (RPL) ■ Ricoh Industrie France S.A.S.

■ Ricoh Asia Industry (Shenzhen), Ltd. ■ Ricoh Manufacturing (Thailand), Ltd.

■ Ricoh Electronics, Inc

California & Georgia

U.S.A

UK

France

China

Thailand ■ Ricoh Components &

Products (Shenzhen) Co.,

Ltd.

■ Ricoh Japan

14 Production

Sites.

Established in 1985

£270 million sales

Supplying European

market place

Based in Telford,

Shropshire

Ricoh Telford (Ricoh Products Ltd)

Production Printing Products

Multi-function printing device consumables

Remanufactured Supplies & Machines

Product Range

Ricoh Telford waste streams

Zero Waste to Landfill: 2001

Waste-2-ProductWood pallets

Plastic pallets

Steel

Ferrous metals

Aluminium

Paper

Cardboard

Plastics

Glass

Electronic equipment

General Waste

Haz waste

…. then prepared for the

contractor (customer)

Recycling Centre

Zero Waste to Landfill: 2001

Approach:

Recognising “waste” as a resource (Waste-2-

Product)

To show management commitment & Ricoh

targets

To develop ownership through people

involvement and use of their knowledge

“Segregate at Source” approach included in

employees induction

Result: waste recognised as a resource for

sale and cost saving, whilst reducing

environmental impacts.

(£100,000)

(£50,000)

£0

£50,000

£100,000

£150,000

£

Zero Waste Profitability Disposal Cost

Revenue

Profit

Business benefit

Zero Waste “Waste-2-Product” Profitability

- £46k

£50k £59k

IS: Cyclical Business model

Improve waste

segregation to create new

“Product”

Supply product

Reduce cost – Receive revenue

Market

saturation

Recycling Contractor

rejects low quality product

Decrease in operational

performance

Drives innovation

& process change

(Industrial Symbiosis)

Driving an upward spiral of resource conservation

Manufacturing Today

The sustainable ideal is a

balanced 3Ps approach

Most of today’s product tends

towards 1st life/ single use

(profit centric)

Sustainable design is

increasing, but not yet the

mainstream

Ricoh’s role is to learn, and

develop resource

conservation.

Planet

People ProfitProfit

Land use(factory construction/

landscaping).

Collection/ Recycling

Water Timber

Crude Oil

(fuel)

Natural

GasCoal

Zinc Ore

Nickel Ore

Copper Ore

Molybdenum

Platinum

Chromium Ore

Manganese Ore

Silver

Ore

Bauxite

Lead

OreTin Ore

Crude Oil

(raw Material)

Silver

Ore

Gold Ore

Titanium

C O

(carbon Monoxide)

NOx

(Nitrogen Oxide)

SOx

(Sulphur Oxide)

CO2

(Carbon Dioxide)

N20

(Nitrous

Oxide)

CxHy

(hydro

Carbons)

CH4

(Methane)Dust

NMVOC

(Non-methane

Hydrocarbons)

Slag

Unspecified Solid Waste

Sludge

BOD

(Biological Oxygen

Demand)

COD

(Chemical Oxygen

Demand)SS

(suspended Solids)

Logistics/ Marketing

Procurement of raw materials

Use/ Maintenance

Input Output

Design/ Manufacturing

Continuous INPUT of resources to create products and OUTPUT of chemical substances, a linear relationship between these two are to be the basis of increasing the negative environmental impact on the

Earth.

In the future, if natural resources are to be depleted the we won’t be able to continue our normal business activities. We wonder if there is

a way to avoid running out of resources as opposed to such linear activities.

Extracted Resources for the business activities

such as

•Energy resource

•Mineral resource

•Renewable Resources

Substances that discharge in the

process of business activities.

Resource Security

Eco-Line products

Remanufactured Products

Eco Line - Remanufacturing Process

Remanufactured machines (BS-MADE

8887-220)

Striped to chassis

All mortality parts replaced /All panels

sprayed

All firmware / software modifications fitted

Completely Re-branded and sold as new

line

Quality Control: inspected and assured the

same as new products

Extending the life cycle, reducing

environmental impact

Resource Conservation

Concept: develop business strategy to maintain

materials for productivity– Compliance

– Long term approach (2050 Plan)

– Supply Chain awareness and change in procurement

– Life Cycle - Comet Circle deployment

– Diversification of operation (remanufacturing)

Result: Reduced environmental impact of operation,

extended life cycle of materials, resulting in a

changing operation to maintain future business

continuity (Sustainability).

Business Benefits

10/11/2015 Version: [###] Classification: Internal Owner: [Insert name]

Asset Supplies Remanufacturing Department

Product /

ProcessEuropean wide sourced Toner cartridge

Remanufacturing of AIO / PCU / Fuser

units

How Much reverse logistics return 55 tonnes /

month.

Business

BenefitBased on the avg selling cost within the

Ricoh demand chain the process is worth

€11 million per month, the direct benefit to

the manufacturing process compared to

buying virgin materials and parts is €2

million per month.

Comments Now established as part of European

manufacturing operations

+ Comet

Shifts3

Business Benefits

10/11/2015 Version: [###] Classification: Internal Owner: [Insert name] 20

Asset Machines Remanufacturing

Product /

Process

Remanufacturing of copiers and production

printers following BS887-2

How Much 160 units per month

Business

Benefit

40% cost savings compared to new models,

reducing environmental impact by 38%

Comments Established as part of Ricoh’s manufacturing

operations

+ Comet

Shifts

3

Life Cycle: Comet Circle deployment

Customer

Operating

Company

Product

Manf.

Parts

Manf.

Materials

Manf.

Materials

Supplier

MaintenanceParts

Recovery

Materials

Recovery

Material

Separation

Raw material

recovery

Incineration with

Energy Recovery

Final

Disposal

Recovery

Secondary User of

Materials

Recycling

Centre

Green

Centre

Remanufacturing Zero Waste

(Circular Economy Industrial Symbiosis)

BESST partners with Telford & Wrekin Council

Business Environmental

Support Scheme Telford

• Business led Environmental Network (Formed 2002)

• Mission: “To enhance the environmental performance of local business; In turn boosting efficiency and reducing the impact on the global environment”

• Providing a forum to share BESST practice between companies to improve sustainability

• 60 organisations covering Telford and beyond

• Model used to start other Business Environmental Networks (www.telfordbesst.co.uk)

23

NISP Facilitated Solutions

Ricoh working with the NISP program

(2005-2007)

• Accessed Environment Agency

specialist who helped us reclassify

the waste,

• Sourced a sustainable solution to

handle both toner and cartridge

waste

Ricoh Savings

• recycled 574 tonnes of waste

• saving £378, 000 processing

costs

IS: Telford Area Deployment

BESST & NISP IS Facilitated Events

• Presentations, waste mapping training and local case studies

• 4 Workshops to match producers and carriers for various waste products –to highlight business opportunities to reduce costs and increase sales

• Final event: 840 potential IS matches were made

Sharing Sustainability

BESST’s use of IS principles

is now a model for

International Synergies

program.

Responsible Business GrowthRPL’s expertise is used

to assist Ricoh Sales

and to show customers

The Ricoh Way

Ricoh Telford’s Energy

Reduction exceeds

Ricoh’s CO2 targets and

also saves £1 Million per

year.

The Waste -2-Product

program increases the

life cycle of materials

whilst increasing

profitability

Remanufacturing

Eco Line and Supplies

Recycling increase the

sustainability of raw

materials and our

manufacturing process

Waste and CO2 generation is now decoupled from growth (turnover

increased by 325% since 2003) in line with Zero Impact Growth philosophy

Waste-2-Product

The RICOH Way

Production System

RPL Energy Reduction (CO2)

RPL Telford Electricity (MWh)

5,000

7,000

9,000

11,000

13,000

15,000

17,000

19,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

MWh

Electricity MWh

Corporate Biodiversity

actively repairs damage

and engages

employees and

stakeholders.

RPL Telford Turnover (£M)

0

50

100

150

200

250

300

350

400

450

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

£ M

Turnover (£M)

Impact vs £ Turnover

New Mind Set: Combining IS & ES

Reusing tree conservation waste to

create overwintering assets for

biodiversity (natural capital

enhancement)

Created plan for a

techno & eco centric

symbiosis based

pollution prevention

control system

Increases collaboration and sharing of knowledge

(facilitated networking) to generate solutions

Facilitates innovation in processes and asset development

Reduced costs > Increased revenue (Waste-2-Product)

Mitigates resource conservation and supply chain risks

through improving control of assets throughout the life cycle

(Comet Circle)

Informs appropriate legislation (working with regulators)

Supports the business benefits of moving to long term

strategy, improving business continuity (Ricoh’s 2050 Plan)

Demonstrates Responsible Business Growth– Resource Efficiency & Conservation

– Circular Economy development

– Natural Capital enhancement

IS Summary

IS = Business Continuity = Sustainability