Eindhoven, May 17th, 2018 – A growing number of companies are transitioning to a circular business model in which equipment re-use, refurbishment, remanufacturing and recycling are key to the company’s strategy. DLL, a global vendor finance company, researched the business and operational impact of compliance when transitioning to a circular business model. The insights have been published in a new whitepaper, ‘Managing the impact of compliance on life cycle management’, including a checklist to manage compliance.
The circular economy & life cycle management
The circular economy is a more regenerative and sustainable model that can move the industry away from the old linear ‘take, make and waste’ model. By designing products to be recycled, reused or remanufactured at the end of their first life cycle, manufacturers can help reduce pressure on the planet’s resources while creating second and third life revenue streams by moving assets into a new life. The concept of a circular economy favors usage over ownership. In usage-based models, manufacturers can maintain control of their equipment throughout its life and ensure that the equipment or materials are re-used, rather than sitting idle or being relegated to a landfill. Life cycle management is a crucial parameter of its success.
The role of compliance
Compliance is often seen as a barrier to doing business. However, the impact of non-compliance has criminal, reputational and financial consequences. Businesses should safeguard their practices by making compliance a necessity. Egbert de Jong, VP Product Development at DLL explains, “Through this whitepaper we aim to give insights into laws, regulations and standards that manufacturers, dealers and resellers should take into account when moving assets into a new life.” Throughout its research, DLL focuses on three subjects that have major implications for life cycle management and the circular economy: data protection, recycling, and cross-border shipment.