Greening from the front to the back door? Investigating the varieties of chemical and resource management services Markku Anttonen Helsinki School of Economics Presentation at the GIN-FSI conference June 26th – 28th Leeuwarden, the Netherlands

June 28th 2008 Background: Part of the second MASCO - Material Efficiency Services project Management service for material flows Management of selected material group is outsourced to service provider Material efficiency consulting MASCO model provider takes care of the material savings investment project so that client neither invests own funds nor operational resources Material savings as additional service Same but provider offers MASCO-services aside of its core business

June 28th 2008 This study Reviewing and analyzing the services of 38 chemical and resource management service providers. Constructing ideal types as service profiles for these services Deepening the understanding of these services for future research.

June 28th 2008 Full house Front door ICT-based safety and supply In house Entering from the back door Approaches from: Sourcing, vendor management, purchasing, incoming material storage, delivery (point of use), usage planning & management, data, reporting, Approaches from: Operating & managing chemicals in customers manufacturing lines or certain parts of the line Approaches from: Waste hauling, recycling, data collection, reporting, etc. Service models I

June 28th 2008 Service models II 1.Front door; streamlining supply side management. These services are closely related to supply side management or inbound logistics management of chemicals. 2.In-house; managing chemicals in production processes. The services in this group concentrate on operating processes and increase the process efficiency in the customers’ production facilities. 3.Safety and supply management using ICT includes services based solely on different ICT and software based solutions and services. 4.Full house of services includes services that are integrated from front to back door. 5.Entering from the back door; Resource management services concentrate on improved waste avoidance and material efficiency from the waste management or downstream side of the supply chain.

June 28th 2008 Case examples from regional point of view Würth & Ekokem KIES

June 28th 2008 Regional service centers Reference: Piirainen, 2007 KIES

June 28th 2008 Case: Kemira regional service center at HAAPAVESI

June 28th 2008 Chemicals auditing Usage – present/target Chemicals substitution REACH-consultation E&HS t raining & consultation Distribution/refilling/point-of-use Products chemicals, re-usable spray cans (Refill) ja filling equipment (Refillomat) Pine-oil based chemicals by Teknoforest/Pine-Line (partner) Hazardous waste management Collection & hauling Waste handling, recycling & disposal Metals recycling Planning Training, management & consultation (waste, EH&S) Pilot: Spray chemicals management & recycling One contract for chemical spray waste hauling & handling possible logistics integration: in- and outbound Clewer® Rotating Bed Biofilm Reactor (RBBR) for wastewater treatment Future bossibilities? Finnish defense forces/Armored Brigade

June 28th 2008 Providing already chemical management services or other materials efficiency servcies and willing and able to develop it’s services towards that Providing: Collection & hauling Waste handling, recycling & disposal Metals recycling Training & consultation Willing to develop towards resource management Any chemical Distributor or... CUSTOMER Any environmental service company... For SMEs: Co-operation through supply- chain and life-cycle Other partners...

June 28th 2008 Conclusions Re-organizing supply-chain and responsibilities -> sustainable business Varying focus of the services – somewhat different efficiencies created in each service concept –Enhanced procurement, warehousing and delivery –Manufacturing process efficiencies –Streamlined waste management and other environmental services Contextualized business models for different services and companies –targeted co-operation, for example SME, public organizations –targeted service development (role and competences) through the supply-chain) –humble beginnings –Long term approach Look for market demand and operational feasibility Look for business logic innovations and how to integrate them with eco-efficiency