How the Circular Economy Is Unleashing New Sources of Business Value for OEMs
This eBook, « How the Circular Economy Is Unleashing New Sources of Business Value for OEMs » explores the impact of adopting a circular economy model on Original Equipment Manufacturers (OEMs). This model, which emphasizes recovery, reuse, recycling, sharing, and collaboration, offers significant environmental, economic, and societal benefits.
Along with real-life use cases from companies like Toyota, IKEA, and Caterpillar, this eBook outlines:
- Economic and environmental benefits: The circular economy drives innovation and sustainable growth by reducing carbon emissions and improving parts longevity and reuse.
- Service-based business models: OEMs are shifting to service-based models, like Caterpillar’s Cat Reman® program and IKEA’s furniture leasing, offering higher ROI and margins.
- Digitization and data analytics: Embedding automated, data-driven processes throughout the product lifecycle unlocks efficiencies and new revenue streams.
- Shifts in profitability: Profitability is moving from equipment sales to the use phase, supported by trends in digitization, servitization, and sustainability.
- High complexity, high risk, high reward: New service-based models involve higher complexity and risk, requiring advanced skills to manage predictions and logistics efficiently.
- Real-world examples: Companies like Airbus and Johnson & Johnson use data ecosystems and digital analytics to optimize productivity and predict demand, achieving significant economic benefits.
The circular economy offers OEMs a strategy to unlock new business value through sustainable practices, service-based models, and advanced data analytics, fostering long-term growth and sustainability.
Whether you’re an OEM looking to reduce environmental impact, enhance profitability, or drive innovation, the time to act is now. Download our eBook « How the Circular Economy Is Unleashing New Sources of Business Value for OEMs » to get start your journey towards a more sustainable, efficient, and profitable future.