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Circular Procurement - An Introduction



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This presentation gives an overview of the meaning of Circular Procurement and explores concepts and ideas related to the topic, including references to circular procurement examples.

Presented by Christine Storry - PIPEN Project Manager

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Circular Procurement - An Introduction

  1. 1. Circular Procurement – An Introduction Presented by Christine Storry – PIPEN Project Manager South West England
  2. 2. To recap Sustainable procurement takes into account – Economic ) – Social ) issues – Environmental ) • Within procurement and • In balance with each other Life Cycle Costing considers – Acquisition ) – Operation ) – Maintenance ) costs – Disposal/end of life ) • As the full value of a contract
  3. 3. Circular economy Circular economy Maintain materials & resources Waste minimised Resilience by design Restorative & regenerative
  4. 4. Circular economy In essence… • Moving away from ‘take, make, dispose’ • Waste as a product – with value • Designing in reusable value • Designing in longevity • Designing in durability and repairability • Leading to… • …Circular Procurement
  5. 5. Circular procurement • No agreed definition of circular procurement • Products procured follow the principles of circular economy • Reused in the product chain • Closing material and product loops • Thinking about the end – at the beginning • Circular demand creates opportunities for circular supply – Innovation – Business opportunities and growth • More than one approach to adoption
  6. 6. Focus areas for procurement Service instead of product •Lease –v- buy •Manufacturer retails control •Manufacturer has vested interested •Procurers only pay for what they use Product design, use and end of life •Consider use and end of life/contract •Can products be useful after use •e.g. reused, refurbished, parts used again Market dialogue •Greater transparency from all parties •Mutual benefits •Knowing what the market can do •Market knowing what is proposed
  7. 7. Examples of circular procurement routes • Supplier buys back • Agreed price (at outset) • Encourages reuse, refurb, remanufacture Buy – sell back • Sold to a third party • For refurb, etc Buy – re-sell • Remains property of supplier • Access is provided to product (eg, MFD, ‘pay per lux’) • Supplier has a vested interest Product Service Systems
  8. 8. Circular procurement process Policy Strategy Market Engagement Tender process Use + contract m’ment Asset disposal
  9. 9. Behaviour change • Different approach to procurement • Wider view of impacts • Improved dialogue internally and externally • To start with, don’t reinvent the wheel – use what’s available • Later on – go for it! We can change behaviours, if we make change fun.
  10. 10. Circular procurement – Life Cycle Costing • LCC considers acquisition costs, running, use and disposal costs • Circular procurement considers product characteristics with a view to designing out waste • Procurement can help define those characteristics and adopt appropriate procurement route and contract specification • Subsequently measured through LCC – At needs analysis phase; or – Tender evaluation
  11. 11. South West England © 2017, UWE Bristol www.uwe.ac.uk