Circular Economy

Product design has a key function in the business cycle. After all: Too many products are still designed as disposable products so that they cannot be reused or repaired. These products do not meet the requirements for sustainability in the circular economy from the basic design alone. Up to 80 per cent of the environmental impact of products is predetermined by their design at the beginning of their life cycle.
At TMG Consultants, we help the manufacturing industry adopt the right approach to developing circular products. At the same time, the design of a new product remains a question of economic efficiency, taking into account the different requirements.

Regardless of the current explosive situation and the supply bottlenecks for individual raw materials, we think it makes sense to fundamentally consider the products in which recycling raw materials could already be used today. The EU Commission’s goals envisage that by 2030 more than 25% of the current demand for raw materials can be covered by recycled materials.

Furthermore, the use of sustainable and recyclable materials and raw materials is an effective measure to both counteract the risk of increasing shortages of important raw materials and reduce dependence on suppliers in remote and politically unstable regions.

How the search for a supplier of recyclates or other sustainable resources can be done today with the help of artificial intelligence is demonstrated by 7Q1 – a tool we use to identify suitable suppliers easily and quickly. With the help of 7Q1 and the use of AI combined with Big Data, manufacturing companies will be able to identify suppliers quickly, cost-effectively and objectively worldwide.

A circular economy is only as good as its reverse logistics. Without it, the cycle cannot be closed. Return logistics is fundamentally different from classic distribution logistics. The key challenge here is that it is no longer controlled directly from a central point to a large number of recipients. Quite the opposite: In reverse logistics, users decide when products are returned to the cycle.

Consequently, companies that are considering the step towards a circular economy must also deal with the question of how to set up and implement reverse logistics that function as efficiently as possible. The key to success is not to treat reverse logistics as a marginal topic. If a company consciously decides to actively enter the circular economy, those responsible should also put reverse logistics on the agenda and secure it in organisational terms in the company according to its importance.

Production plays a key role in the circular economy model. Since an average of 40 to 50 per cent of the total costs in manufacturing companies flow into production materials, substantial cost savings can be achieved via the professional recycling of such materials.

To design and establish a closed material cycle in production, manufacturing companies have various options at their disposal, from recycling and re-manufacturing to product overhaul.

At TMG Consultants, we work with our clients to develop a clear strategy in advance and plan or optimise the processes. We advise you on all key issues: Are the re-manufacturing/production processes efficient? Is the effort involved in reprocessing commensurate with the benefits?

Digitalisation creates transparency with regard to the specific status of products and ensures traceability throughout the entire life cycle up to the final return.

Many companies do not know what happens to their products once they have been brought to market: How is the product used? How intensive is this use? What is the quality of the product during and at the end of its life cycle? What about the quality of some specific components at the end of their life cycle? These and many other questions can be answered today by digital solutions. Digitalisation is, therefore, making a fundamental contribution to companies gaining more information about their product from reused or re-manufactured products, recycled materials and even particularly extended useful lives, and, therefore, deriving sustainable economic benefits.

By way of our experience, we help companies collect and evaluate the relevant data. Based on internal IT systems, we create solutions to bundle and link all product-related data. Digitalisation, therefore, becomes a lever that is largely responsible for the efficiency of the entire cycle.