24 2 Theoretical Foundations
35Fig. 2^ Overview of monetary and non-monetary benefi ts derived from literature^
As presented in Figure 2, cost savings is a monetary category identifi ed in literature.
Th e category is distinguished in cost savings achieved through (1) lower material
costs by retrieving and reusing material ( Park et al. 2010; Kienbaum Management
Consulting 2014), and (2) the reduction of other ‘non-value-added’ costs. Th e later
can be achieved e.g. through lower insurance costs, more effi cient energy use and
fewer environmental penalties ( Geng et al. 2012), lesser pollution and waste inef-
fi ciencies ( Sinkin et al. 2008; Ellen MacArthur Foundation 2012; Accenture 2014)
or reduction of warranty costs ( Ellen MacArthur Foundation 2012).
On (1): A case study undertaken by Park et al., consisting of three cases in theinformation technology and electronic industries in China, distinguished between
cost reduction on corporate and inter-fi rm level. Th e results showed that on a
corporate level, production cost savings are possible by retrieving and reusing
material. On an inter-fi rm level, fi ndings show that organizations which are part
of an eco-industrial park can benefi t from material cost reduction through col-
lection, remanufacturing and reuse of materials within the park ( Park et al. 2010).
Th e Ellen MacArthur Foundation sees the potential of a reduced material bill by
“reselling and component recovery” ( Ellen MacArthur Foundation 2012, p. 75).