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Clean technology enables cost and waste reduction

Consumer demand
By Paul Hodges on 21-Jul-2012

Waste Jul12.pngAffordability, rather than value-in-use, will be key to success for companies as we transition to the New Normal.

This means, as we note in Chapter 9 of ‘Boom, Gloom and the New Normal’, that manufacturing will have a major role to play in achieving the changes required. Waste will need to be greatly reduced, if costs are to remain competitive.

The above chart from a major new UK government report provides a helpful summary of the 4 main areas by which this objective can be achieved. 2 of these areas are, of course, already well understood:

• Waste Minimisation has always been a major focus for businesses
• Green Products are media-friendly, but often have low market shares

This leaves two areas which have been relatively ignored:

• Clean Operations use new technology to reduce waste by design
• Product Service Innovation enables new ways of working with supply chain partners

There is nothing terribly ‘clever’ about either of these approaches. Most companies could achieve quick wins if they decided to move forward with them, as we discuss in the eBook.

Boards and manufacturing unit managers simply need to move them up the agenda. The business justification is clear. Clean operation and product service innovation are the only tools that offer major scope for achieving further cost reductions in the near-term.