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Embrace Sustainability with SAP
Circular Manufacturing at scale
Build a regenerative business and embed circularity into core business processes
Welcome
In today's rapidly changing world, industrial manufacturing is facing a pressing challenge. It needs to satisfy growing demand for products and manage global risks while protecting our environment and conserving natural resources. Circular manufacturing is a response to this challenge.
Organizations are experiencing a shift from a traditional, linear "take-make-dispose" model to a more sustainable and circular approach. At SAP, our circular manufacturing framework helps close the manufacturing loop by enabling companies to design products and processes that minimize waste, maximize resource efficiency, and prioritize the 4Rs:
Recycling Refurbishing Remanufacturing Repair.
REManufacturing
involves taking used products or components and restarting their lifetime by replacing worn-out parts, repairing defects, and performing thorough testing.
.
640 billion
is the potential annual saving in global material costs for the EU manufacturing sector by 2025, if circular manufacturing is adopted
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Refurbishment
is similar to remanufacturing but often involves a less-intensive process. It entails cleaning, repairing, and restoring used products to a good working condition, although not necessarily to a like-new state.
.
50 million
metric tons of global e-waste generation could be avoided annually by refurbishment
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Repair
is the process of fixing or restoring damaged or malfunctioning products to make them functional again. Repair extends the life of the asset, delaying the need for new products.
.
54%
of the world’s total delivered energy is consumed by industrial manufacturing companies, which makes decarbonization more urgent
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Recycling
involves the collection, processing, and transformation of waste materials into new products or raw materials. Recycling is the last resort when products or components can no longer be remanufactured, refurbished, or repaired.
90%
of energy can be saved by reprocessing plastic instead of making plastic from raw materials
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Design
Circular Design is about designing new business models that leverage reuse across the component hierarchy of a product. Product managers simulate opportunities to take back existing products and evaluate the economic and sustainability impact of various disposition actions across the reuse loops.
Reverse logistics
Reverse logistics is about closing the circle and getting products back at the end of their lifecycle or in case of defects. The better evaluation, testing and handling of returned products is organized, the higher the customer satisfaction and the more waste can be avoided through proper treatment of products
Plan & Source
Production waste and scrap could be a source of material for other companies in the value chain. These materials could be sourced from new suppliers, after their quality is validated and due diligence is done. This requires careful planning, aligned with circularity KPIs, production plan and demand.
Manufacture
Remanufacturing encourages the design of products that can be easily disassembled and reused instead of being discarded after a short period of use. This approach creates a more sustainable and efficient manufacturing system that reduces the environmental impact of production and conserves resources.
Distribute
After Products are disassembled or refurbished, they need to be properly inventoried, stored and transported to their point of use. The point of use can either be an internal site for further processing or a customer purchasing the good to include it in their supply chain.
Operate
Asset maintenance strategy should optimise asset lifecycle. Modern technologies like digital twin allows real-time monitoring of the asset and helps improve performance and provide timely maintenance. It also helps making decisions on when is the best time to repair and refurbish the asset.
Did you know that...
Join the circular movement and make a difference today!
87%
of consumers will have a more positive image of a company that supports social or environmental issues.
< 8 million
new jobs could be created in the circular economy, where all forms of waste, such as clothes, scrap metal and obsolete electronics are reused, recycled and refurbished.
45%
circular manufacturing could slash the global greenhouse gas emissions from industry, agriculture, and land use.
Examples from the industry
Circular manufacturing is a well-established concept. These companies have already started their journey and are achieving great results.
Maximizing product value for the customer through remanufacturing
Giving new life to returned parts and contributing to more sustainable solutions.
Circular economy is the best answer to sustainability challenge
Prioritizing circularity can help to future proof your businesses
start your Circularity journey Now!
Elevate your path towards circularity
with our three-step approach.
Watch the video to learn more.
Conduct a business assessment
The main objective of this step is to identify your ambitions in circularity and the gap between your current state and these ambitions.
