Exploratory Study on Circular Economy Approaches A Comparative Analysis of Theory and Practice

(Rick Simeone) #1

4.6 Case Delta 71


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Appendix: German Quote 18). As mentioned above, the current challenge is that


there is no infrastructure established that enables the organization to retrieve the


removed parquet. Only when this challenge is overcome and a global, cost-efficient


infrastructure has been established can this potential benefit be realized.


The third impact is a positive brand image. Although brand image is not one of

the main motivators, the interview partner expressed that their circular economy


approach fits perfectly into the organization’s corporate identity and therefore gives


customers a good impression of its corporate values. As the interviewee said: “(...) but


I think it is helpful to have it for our public image” (see Appendix: German Quote 19).


A negative impact is the higher prices for circular resources which has already

been mentioned. To fulfill the requirements of circularity, often substitutes for


conventional components, e.g. in the case of parquet the oil, the glue or the varnish


etc. are required. These substitutes usually need to be developed specifically for the


organization. This additional effort is mostly carried out by suppliers. The develop-


ment effort combined with the low production quantities lead to higher prices for the


resources and therefore make the resulting product more expensive. The company


representative explained it as follows: “Cradle-to-Cradle leads to increased resource


prices. Often innovation and new developments are necessary, production volumes


are low and transport logistics are unclear (...)” (see Appendix: German Quote 20).


To summarize, it is important to note that this organization is at the beginning

of its transformation towards circular economy. Several questions especially re-


garding the end of the product lifecycle remain open. However, the organization


has already reaped benefits and believes further positive effects for their business


will be realized as implementation continues. Its commitment to circular economy


will become stronger and the theoretical concepts it is currently developing shall


be brought to life within the next years.


4.6 Case Delta


4.6 Case Delta


4.6.1 The Company’s Circular Economy Approach


The organization’s product range comprises of yarns and fabrics for the production


of working clothes, protective wear and corporate wear. The organization operates


in a business to business environment and usually has no direct contact with the


end-consumer. The usual business chain is as follows: the clothes manufacturer


sells his products to a laundry business who rents the clothes to the end-consumer.


The end-consumer can be a major industrial corporation, hospitals or other public

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