How the Circular Economy Is Unleashing New Sources of Business Value for OEMs

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3D mockup of SYncron ebook How the Circular economy is Unleashing New Sources of Business Value

This eBook, “How the Circular Economy Is Unleashing New Sources of Business Value for OEMs” explores the impact of adopting a circular economy model on Original Equipment Manufacturers (OEMs). This model, which emphasizes recovery, reuse, recycling, sharing, and collaboration, offers significant environmental, economic, and societal benefits.

Along with real-life use cases from companies like Toyota, IKEA, and Caterpillar, this eBook outlines:

  • Economic and environmental benefits: The circular economy drives innovation and sustainable growth by reducing carbon emissions and improving parts longevity and reuse.
  • Service-based business models: OEMs are shifting to service-based models, like Caterpillar’s Cat Reman® program and IKEA’s furniture leasing, offering higher ROI and margins.
  • Digitization and data analytics: Embedding automated, data-driven processes throughout the product lifecycle unlocks efficiencies and new revenue streams.
  • Shifts in profitability: Profitability is moving from equipment sales to the use phase, supported by trends in digitization, servitization, and sustainability.
  • High complexity, high risk, high reward: New service-based models involve higher complexity and risk, requiring advanced skills to manage predictions and logistics efficiently.
  • Real-world examples: Companies like Airbus and Johnson & Johnson use data ecosystems and digital analytics to optimize productivity and predict demand, achieving significant economic benefits.

The circular economy offers OEMs a strategy to unlock new business value through sustainable practices, service-based models, and advanced data analytics, fostering long-term growth and sustainability.

Whether you’re an OEM looking to reduce environmental impact, enhance profitability, or drive innovation, the time to act is now. Download our eBook “How the Circular Economy Is Unleashing New Sources of Business Value for OEMs” to get start your journey towards a more sustainable, efficient, and profitable future.