New podcast with ReThink Global

New podcast with ReThink Global

Our first podcast with ReThink Global was released!

We are so excited to announce the release of our first podcast with our amazing Circular Economy partners in the UK ReThink Global, and the award winning CE author Catherine Weetman. Catherine is a circular economy business advisor, workshop facilitator, speaker and writer.  Her award-winning book A Circular Economy Handbook for Business and Supply Chains, includes a wealth of wide-ranging examples and tips on getting started.  She founded Rethink Global in 2013, to help businesses use circular, sustainable approaches to make a better business (and a better world).

In this incredibly inspiring podcast, our CEO Noreen Kam and Chairman Michael Brown talk about the circular asset management solution we`ve developed for LUP Global’s customers.

Listen an extract of the interview by clicking on the picture!

Benefits of circular strategies

Noreen explains the massive opportunities that exist for companies to reduce their Capex (capital expenditure) by up to 60%, improve the performance and lifetime cost of equipment by 40%, and to recover value from the equipment at the end of its service period. She gives excellent examples to show how organizations can work jointly with LUP as buyers or sellers, and enhance the value of their assets considerably.

Michael talks about the mindset shift that is required to understand the importance of circular strategies, and mentions how this approach is normal in the airline industry, where often the airline doesn´t own anything – the plane, the engines, even the seats. Under this model, everything is owned, provided and maintained by the suppliers – you may have heard of the Rolls Royce example, selling power by the hour so you purchase the performance of the engine, instead of buying the engine itself. He highlights our vision that promotes the utilisation of assets to the fullest of their life, which demands discipline to have an appropriate register to record and manage the use of it.

Noreen and Michael mention to Catherine that this approach isn’t used in many other industry sectors, and this is one of our greatest motivations for developing our business model, to help companies to get benefits from this circular asset management approach, starting with laboratory equipment.

 

Check Catherine´s Circular Economy Podcast clicking on the picture!

It was so inspiring having this conversation with partners that are as passionate as us when talking about these life-changing topics! We are extremely happy for this great achievement and we hope this was just the first one of many more.

Thanks Catherine and the whole team of ReThink Global, let´s keep showing the world that there is a better way to do things 🙂

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Strategic partnership LUP Global & Peak scientific

Strategic partnership LUP Global & Peak scientific

Interview with Dr Nicole Pendini, General Manager at Peak Gas Generation Oceania, strategic partners with LUP Global

 

Peak Scientific (a Peak Gas Generation brand) is a leading innovator in the design, manufacture and support of high-performance gas generators for analytical laboratories through to large scale industrial applications. With over two decades of experience in pioneering reliable gas generator technology, Peak gas generation leads the market for on-site nitrogen, hydrogen, oxygen and zero air gas generation systems.

An on-site gas generator from Peak Scientific is the practical and cost-effective alternative to pressurized cylinders and bulk liquid delivery. Traditional sources of gas incur on-going delivery, administration, rental, OHE and staffing costs.All of which impact on facility budgets and overall business profitability. Peak´s forte is in providing their customers with unrivalled peace of mind and hassle free; high quality, dependable gas generation solutions – designed and tailored to meet the specific application demands for pressure, flow and purity. This comes backed up by their world-class technical support and on-going service care throughout the generators lifespan. With a rapid response and offices on every continent, they deliver a local service on a global scale.

Through their scientific expertise, Peak Scientific has developed and provide on-site gas solutions to a range of OEM’s specialty equipment and applications including; food and beverage, packaging, purging, blanketing, Bag-in-box (BIB), 3-D printing, synthetic diamond production, aquiculture, through to gas required for nappy ‘fluffing’ and plastics recycling.

Peak partner only with trusted, respected and like-minded, customer and solution orientated colleagues. Peak Scientific Instruments (Peak Oceania) is proud to name LUP Global as a strategic partner, working together towards a circular economy, reducing our environmental impact and local waste, to make a global impact.

Here, LUP Global founder; Noreen Kam discusses the importance of collaboration and sustainable outcomes with Peak Gas Generation Oceania; General Manager Dr Nicole Pendini.

A huge milestone for LUP has been this first OEM strategic partnership with Peak and our combined GREEN focus. How does this partnership benefit more businesses within the Science, technology, medical, manufacturing and agriculture industries?

LUP and Peak share the same, and some may say simple vision:waste prevention. This could be landfill waste due to incorrect purchasing decisions, not fit for purpose, sub-par quality and lack of longevity of products. Incorrect procurement is wasted effort, time and of course money. We want to see fit for purpose procurement and products that last, rather than simply being replaced, equating to increasing landfill. Peak primarily focus on our products lasting 10 – 15 years +. We refit compressors rather than replacing completely in order to maximise their lifespan, reduce metal landfill waste and of course, reduce overall cost. Peak offer rental and repurposing of gas generators through our partners LUP global.

LUP is extremely well connected to logistics, procurement and end-users in need of reliable and constant gas supply. Critical gas applications include: Covid-19 vaccine and other drug discovery, R&D, pharmaceutical and natural product manufacturing, water testing, 3-D printing, though to food safety: nitrogen gas is used to assure for longevity and sterility of food which is so important now more than ever. Traditional sources of gas require off-site gas generation, then frequent delivery by truck to site, incur on-going delivery, administrative and rental costs in addition to health and environment considerations due to the high storage pressures of cylinders/ boil-off gas options.

On-site gas generation is safe, lower overall running cost and significantly reduces carbon footprint due to constant truck deliveries required for cylinders. LUP facilitates customers in conjunction with Peak’s technical experts to assure a greener way forward with major return on investments for end-users and businesses.

 

How do you see this as potentially a new sustainable model to help impact our planet and businesses well into the future?

We know we need to reduce carbon emissions, reduce unnecessary transport and landfill waste. Businesses, more than ever, need to devise cost saving strategies while balancing business sustainability and forward-looking growth needs. Opposed to long 3-5 year delivery contracts that can cost 7 times over the cost of an on-site generator, we can easily detail the benefits to both the business as well as the environment by real life examples:

Nitrogen cylinders vs gas generator for a laboratory

Peak generator vs liquid nitrogen boil off:

For even larger supply systems eg: 500 LPM (30 m3/h) the ROI is < 1 year.

What do you see as the next biggest opportunities for Peak Oceania & LUP Global?

Since the pandemic hit us in March, we can see we need to think differently and fast. We need to consider environmental impact of our choices.We can see the drastic drop in air and land travel has greatly improve air quality and we will need to implement ways we can continue to reduce carbon emissions moving forward.This will require a shift in mindset from buy now, think later to think now for future impact.

Additionally, business need to prepare strategically for the long term, ready for the next disruptor. On-site gas generation gives one the flexibility even if there is a reduction in resource (such as Helium- where hydrogen can be used as an alternative), protects from any increases in pricing due to annual indexing or stockpiling, assures gas even when transport is restricted and most importantly in this climate, dramatically decreases contact and movement of people.

We see the business leading viral vaccines and anti- bacterial products, food production, individual packaging and storage, 3-D printing, local manufacturing and local recycling of plastics as the biggest businesses using cylinders or liquid ‘boil-off’ supplies, which would observe immediate cost benefit from a Peak gas generator.

We would like to call on any facilities and project managers though to business owners to consider the saving and impact they can have on the environment through discussing Peak Gas Generation options with our circular economy and procurement partner LUP global.

Thanks Nicole and Peak Scientific! 

 

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Circular Procurement of under-utilised assets – Why? A Supply Chain perspective 

Circular Procurement of under-utilised assets – Why? A Supply Chain perspective 

Written By: Michael Brown, LUP Global Chairman, and former Group General Manager of Supply Chain at Qantas.

What is Circular Procurement – how can it create value from both an environment and commercial perspective?

The Procurement community is great at engaging in the purchase of NEW – more and more we as a Community need to focus on the increasing opportunity for under-utilised Assets that have not reached their FULL lifecycle potential.

Not many industries proactively engage in ensuring their assets are used to their maximum useable life – Heavy Industry Mining and Aerospace maybe possible exceptions. These Industries with exceptional High Value assets do focus on their MRO (Maintain, Repair, Overhaul) cycle to extract the maximum value from the asset and where possible on sell the assets to other operators for continued use or parts tear down. A mindset shift is required to appreciate the importance of Reuse, Repurpose and then Recycle – this should be the Mantra that Procurement leaders live by in the purchase of Capital Assets.

Why shouldn’t this model apply to other sectors – Health, Food & Beverage and other industries…?? It requires both a structured approach to recording assets throughout their lifecycle and then a mandate within a business to consider USED assets during the Procurement process. What actions do businesses need to engage to increase the potential for on sale of under-utilised equipment?

Fundamentals of Creating an Asset Register

Not to overly state the requirements – depending on the type of asset the following basics ideally need to be observed:

  1. Purchase Date and Price, Supplier, OEM
  2. Warranty Provision and any extended warranty arising from a Maintenance action
  3. Depreciation Schedule
  4. Maintenance Cycle
  5. Maintenance Events – activity record
  6. Machine Usage – hours, events, actions completed

This level of information can be easily loaded into an Excel file. The discipline needed to maintain the register needs accountability within an organization. The quality of the data recorded will enhance the on sale potential and realizable value. To use the example of maximising value on the sale of your car – if you are to on-sell your vehicle a buyer will want to know how it has been maintained and good record keeping of these actions will enhance the sales potential.

Looking Forward

To create more Circularity with Assets we need to open our minds to the fundamentals of reducing both waste and the demand for new resources.

Business leaders need to champion the philosophy of Circular Asset Management and adopt internal policy to encourage processes that can maximise the potential for assets to be Reused, Repurposed and then Recycled. Consideration of the commercial value and risk balance needs to gain appreciation in the importance to use Assets to their life fullness.

With today’s Supply Chains being so badly disrupted we are in a position where all available assets that are under-utilised need to be visible to support the strained needs of our markets – whether that be in the Health field or across industries that need support. With the disruption of COVID-19, new assets and spare parts supply have suffered significant shortages. Under-utilised assets can, if managed appropriatly, be a valuable source to avoid supply disruptions.   

As a community we need to collaborate and offer our assets to support areas that might be in need – more and more we believe that LUP Global can assist in the reallocation of critical assets to relieve shortages in Australia and across other countries.

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What Continuous Improvement brings to businesses?

What Continuous Improvement brings to businesses?

What are the common values between LUP & Vative? And how to make bigger impact for businesses through management? 

Meet Theo Pappas, Vative’s CEO. Theo is a self-driven businessman encompassing over 15 years of experience across various leadership roles within the consulting and education space.

It’s the start of 2020 a new decade! What does the next decade look like in Continuous Improvement and for Vative specifically what lies ahead?

Theo Pappas : Where has the decade gone? I came on board with Vative in 2010, blinked and now it is 2020 already!

We’ve seen a lot of maturity in industry and what I mean by that is there has been a boarder industry uptake in the deployment of Continuous Improvement (CI) strategies. There is a far greater respect and adoption for implementing Continuous Improvement which not all that long ago was primarily reserved for businesses in the manufacturing industry. Even though Australia’s economy has global record of growth, businesses including the public sector are consistantly having their purse strings tied and needing to find innovative ways to do more with less.

Vative’s capacity stretches across a myriad of industries, from the CI foundations of Manufacturing through to Construction and across all levels of Government, Vative’s 13 years in business has just about implemented Continuous Improvement in every industry out there, though we’ve experienced a solid emergence in the Healthcare and Agriculture sectors enough to divisionalise dedicated teams across those industry sectors, no doubt over the coming years we’ll have other specialised dedicated industry divisions focusing and tailoring to the specific sector it services.

Continuous Improvement will no doubt continually evolve as it always has, the nest of methodologies it possesses such as Lean, Six-Sigma, Agile will in many industries have its lime light over the coming decade. All industries tend to want to get on the next big thing that is driving one company’s success and the fear of missing out on that journey sometimes drives the purpose of embarking on a Continuous Improvement strategy, which is every reason that it is not the right purpose.

Vative is turning 14 in 2020 and in the short 14 years it has helped over 400 businesses and many thousands of individuals gain skills in the application of Lean Six Sigma. The wisdom we’ve learnt over the time we’ve been in operation is that business transformation requires the right intent, a devised strategy and the most important antidote to ensure its long-term success…. Leadership.  Our extensive experience and data driven research across a selection of 47 organisations Vative has engaged with indicates that the proactiveness and mindset of the Leadership team is consistently the defying factor to a successful outcome in the application of any Continuous Improvement strategy, therefore businesses seeking to embark on such a journey must ensure there is a great deal of emphasis to engage the leadership first. So from this very nature, we at Vative move into the next decade with a distinct and unique business transformation model. Our 5-phase methodology in establishing a continuous improvement culture is what defines Vative’s capability and point of difference to the market. Our experience and history in business transformation is how we’ve devised a benchmark approach in helping organisations increase productivity, profitability and growth.

How do you see LUP’s vision and our focus on sustainability being able to fit in and work best with the vision for Vative?

Theo Pappas : There are synergies that tie the two oganisations quite well, aside from being ShareTree social enterprises, both organisations ultimately have a key focus for their clients and that is simply the art removing waste, whether that be waste in a form of a process or decommissioned assets heading to landfill, waste comes in many shapes, sizes and types though it is always the same desired outcome and that is to eliminate them all.

As social enterprises, by nature we’re both seeking to make an impact on the world, our business model is designed to make other businesses thrive and particularly here in Australia where we’re always obsessive to keep industry and jobs alive by driving businesses to develop continuous improvement cultures. Our customers come from all types of industries and we’re always finding their entire supply chain have wastes ridden throughout it and generally their assets in forms of large machinery or high-volume consumables at the end of their life cycle tend to be quite the expensive wastes.

We’re excited to have Noreen Kam and Michael Brown available to Vative clients as a Supply Chain experts to help implement waste reduction and cost saving strategies via the LUP circular economy models. This brings an exciting new unique capability to our network of customers never available before.
 

What do you see are the next biggest opportunities for Vative & LUP in order to be able to make the biggest impact for businesses?

Theo Pappas : Someone once told me 1 + 1 = 3, it’s a great analogy and rings true in this context. The meaning behind this analogy is that partnering and combining capabilities makes more useful to service clients’ needs, if the collaboration between the two organisations has a common element, combining alike (though non-competing) services brings upon a greater impact.

It is an exciting and fresh partnership we’re quite pleased to welcome the capabilities of the LUP team in the field of Supply Chain Management Consulting to the Vative suite of services.

There is certainly an opportunity to educate industry on innovative sustainability strategies and business practices. We’re Australia’s only training and consultancy provider offering the suite of competitive systems and practices programs, from foundational training right through to highly specialised master level programs at a Graduate Diploma. These programs are influenced under the sustainability training framework and it would be exciting future to enable LUP Global through our Academy arm to educate and empower businesses with skills in designing and leading sustainable deployment strategies.

Education and Training is where a lot of my passions lie and can certainly foresee an opportunity to enable a series of sustainability-based training packages for businesses to learn and implement the LUP Global mission. It is through education and application will give the planet and the businesses that occupy it the biggest impact for the future.

Interested ? Contact us !

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Circular Economy Challenges and opportunities in Africa

Circular Economy Challenges and opportunities in Africa

Peter Desmond is a Chartered Accountant and MBA graduate bringing a broad commercial perspective to his work on the circular economy. Using his experience from 40 years as a strategic advisor, coach, trainer and senior finance executive, he now supports SMEs and corporates in the UK and Africa in getting started on their circular economy journeys.

He is a Circular Economy Club Mentor and Local Organiser for Brighton & Hove, and organises monthly meetings to help accelerate the transition towards Brighton & Hove becoming a circular city.

Peter has an MA (Distinction) in Globalisation, Business and Development from the Institute of Development Studies at Sussex University. His dissertation: “Towards a circular economy in South Africa – what are the constraints to recycling mobile phones?” enabled him to uncover the ways that circular approaches benefit developing economies. Following his graduation in 2016, he returned to South Africa to co-found, with a group of his dissertation interviewees, the African Circular Economy Network.

Peter gave us the pleasure of answering our questions to better understand how the transition to the circular economy operates in Africa, what is needed to support it and the opportunities that are related.

Tell us about The African Circular Economy Network

“The vision of the African Circular Economy Network (ACEN) is to build a restorative African economy that generates well-being and prosperity inclusive of all its people through new forms of economic production and consumption which maintain and regenerate its environmental resources.”

ACEN

What are the biggest challenges facing the circular economy in African countries?

“Africa’s economy is intricately linked to global market dynamics. The international drive towards circular economies (CE), particularly in regions and countries with a strong influence on global material and financial flows, such as the European Union (EU) and China, may bring both economic opportunities and risks.

There is little CE-specific legislation and so regulations and policies in operation and policies are generally focussed on climate change mitigation, the Green Economy (GE), and waste management. The UN 2030 Agenda for Sustainable Development and the UNFCCC COP 21 Paris Agreement are two of the foundational global agreements for relevant policy and legislation developed to date. Proposals for implementation are often presented by policy makers in Africa but take time to achieve promulgation into government policy and legislation.”

How do these differ from circular economy challenges in the Global North?

“The theory behind the circular economy has been emerging in Europe, USA and China relatively recently. Africa has been practicing circular economy for many years such as repair, reuse, refurbishment, sustainable farming practices and the sharing economy. Historically much of the circular economy activity on the continent has been born out of necessity. In recent years, circular economy activities in Africa have largely been driven out of a need to improve environmental management and protect biodiversity. But the narrative is changing and if the transition to a circular economy is to accelerate in Africa, then it needs to be based on maximising the value of resources for economic development and job creation through initiatives such as industrial symbiosis. 

Circular economy activities continue to increase across the continent, with lots of different examples of circular economy models in practise across countries. The private sector appears to be taking the lead in driving the circular economy transition and significantly, innovative business models appear to be led by Small and Medium Enterprises rather than large global companies.”

What do you see as the opportunities for the transition to a circular economy in Africa? What is needed to support this transition?

“Africa, as with the rest of the world, is standing on the brink of a new global phase. The transition towards CE in Africa will be able to contribute towards the achievement of the UN Sustainable Development Goals, particularly Goal 12 “Sustainable Production and Consumption”. The opportunities for accelerating CE principles in Africa are increasing. As well as lessons learnt to be shared from European countries, India, South America and China, African entrepreneurs and start-ups are emerging. Yet there are local, regional and continental constraints which need to be overcome for this momentum to accelerate.

In order to assist in the acceleration to a circular economy in Africa, ACEN is now planning the 1st Pan African Circular Economy Conference to take place in 2021. Support from a variety of stakeholders is now being sought to reach organisations and policy makers across the continent. “

Can you give us some examples of circular economy activities and practices in Africa?

“Below are two images which highlight the opportunities and challenges for the circular economy in Africa:

  • Case studies
  • Policies and legislation” 

opportunities and challenges for the circular economy in Africa

Country Name of policy & year Implementing agency Short description
Ethiopia Climate Resilient Green Economy (2011) Ministry of Environment Reduce impact of climate change through renewable energy
Ghana Ghana Goes for Green Growth (2010) Ministry of Environment Sustainable development and equitable low carbon economic growth
Kenya Nationally Appropriate Mitigation Action – Circular Economy Municipal Solid Waste Management Approach for Urban Areas (2016) Ministry of Environment and Natural Resources Diversion of waste from disposal sites towards recycling
Namibia Green Economic Coalition Dialogue (2011) Ministry of Labour and Social Welfare Economic development, job creation and CO2 reduction
Nigeria Extended Producer Responsibility Programme (2013) National Environmental Standards and Regulations Enforcement Agency Minimisation of industrial waste and promotion of recycling
Rwanda Plastic Bag Law 57 (2008) Ministry of Natural Resources Prohibition of manufacturing, importation, use and sale of polythene bags
South Africa

National Environmental Management Act (1998)

 

Circular Economy Guideline and Briefing Note (in development)

 

Ministry of Environment

 

United Nations Environment Programme and the South African national Department of Environmental Affairs

Minimisation of waste, pollution and use of natural resources

 

As part of SAG focused on circular economy for sustainable consumption and production

 

To have more information, Peter can be contacted at: peter.desmond@acen.africa

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Catherine Weetman Guest Expert Part 6 : Create new value opportunities with circular business models

Catherine Weetman Guest Expert Part 6 : Create new value opportunities with circular business models

Designing products to be durable and repairable could mean customers replace them less frequently and so our annual sales may drop. Even charging more for a better quality product might not offset that reduced revenue. We need to develop new value streams and find other business benefits – perhaps we can sell spare parts, maintenance and repair services, and even upgrades ? To capture value from circular economy approaches, we need to deploy different business models, focusing on access instead of ownership.

Characteristic of circular models

Typical circular business models include : 
  • Contracts with added services, like cars: with a fixed monthly fee that includes servicing, for an agreedmileage
  • Use’ or rental, for example bike and car hire
  • Subscription services, already common for streaming services like music, and useful for products with a short use-cycle, such as Rent the Runway for ‘special occasion’ fashion
  • Payment by Results (’performance’), such as Philips ‘pay per lux’ lighting, and Chemicals as a Service
  • ‘Peer to Peer’ Sharing includes Airbnb and community tool libraries (if a business owns the assets, it’s really a rental or subscription model).

So what value opportunities might spring from retaining ownership of the product?

  • At end-of-use, we can recover key parts and materials, and find out how well it’s performed and withstood wear and tear.
  • We can resell our recovered products, perhaps after refurbishment or even remanufacturing. That can open up new markets, providing a cheaper remanufactured version (with the same warranty as a new one) for customers who can’t afford the new product.
  • Rather than a big marketing spend to acquire new customers, we’ve built a much closer relationship with our existing customers. We’ve engaged with them about new products and services, and found out how to serve them.
  • Providing access and higher levels of product utilisation could ‘touch’ many more customers. BMW’s Drive Now service provides ‘on demand’ cars, with potential for hundreds of customers for each car, instead of one customer per car under the ‘ownership’ model.
Systems thinking can help us look for unforeseen consequences and explore the supply chain implications of these new models, especially the regulations and logistics for returning products and parts back through the system. Aim to ‘experiment’ your way into the future, perhaps trying one product, one market channel or a small geography to test your assumptions and then scale up gradually. .

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