Rags to Riches

Supply chains have traditionally been of immense importance to companies. They do in fact influence the money they make at the end of the day. This input-output process more than summarizes the working cycle and hence the money-making cycle of a company. Of late, with the emergence of greener options and stricter rules, companies are looking to optimize their supply chains in order to comply with restrictions as well as reduce their costs while doing so. The US for example has a strong RoHS( Restriction of Hazardous Substances) directive in place in order to contribute its share towards reducing global warming levels. China followed close behind with its more stringent version of the RoHS drive. Globally, we have seen increased awareness to incorporate cleaner processes. Companies have thus been compelled to actively seek greener options to find cleaner solutions to their supply chain problems.

The supply chain also includes tertiary activities of transport, packaging etc. apart from primarily comprising of the production process. Packing and transportation can be designed in a way that can reduce cardboard/filler content used. Optimized use of transport trucks has also known to drastically reduce costs and pollution levels. General Motors reduced its disposal costs by a staggering 1.2 million USD by putting into practice its reusable container program with suppliers.

One of the most promising areas for potential business development in this context is waste management. Environment management problems are more often material-driven. It is here that the types and costs of wastes gain prominence. Andersen Corporation came up with a composite material generated from its wood wastes that were produced in its manufacturing processes. This material gave them a 50% return-on-investment, decreasing their solid lumber purchases by 750,000 board-feet. This is a great example of earning from waste processing. Re-use of wastes has also produced some staggering figures. Kodak recovers 70% of its sold cameras and reduces operating costs by recycling up to 86% of each camera’s materials. There is thus, tremendous scope for business in the area of better waste disposal and management. Solid wastes from land-fill, waste waters and e-wastes account for a huge percentage of modern industrial wastes. HP, in 2008, saved 7.7 million USD by diverting over 90% of its non-hazardous wastes from landfill. Waste water streams containing valuable process chemicals or metals can serve as excellent opportunities for waste-water treatment units. E-wastes represent 2% of the trash but equal 70% of overall toxic wastes.

The above holds good in the Indian perspective as well. With India transitioning to the western style of living, there are increased wastes in the form of packaging. Packed food, home deliveries and the likes have changed the Indian life style and will continue to do so. Emergence of such trends has only contributed to increasing waste volumes. There are quite a few minor players cashing in on this opportunity. Green Tech Resource Recovery is one such company that has been into municipal solid waste management since 2003. They conduct waste audits and training and awareness programs to handle and manage solid waste. Nagpur-based Aqua- Enviro Equipments and Systems is another player in the waste water management industry. Immense volumes of production of gadgets, computers and electronic systems has only provided for a dire need for e-waste disposal. Singapore-based Cimelia is a major player in the global e-waste management scenario. Gururaja K. Upadhya, Executive Director and Co-Founder of Cerebra Technologies (IT hardware manufacturing) pointed out in an interview (http://india.carbon-outlook.com/content/interview-new-e-waste-management...) the need for companies with the resources and technology for e-waste disposal and stressed on the importance of zero-landfill.

The market for e-waste disposal is immense and is only expanding. With very few players existing in the current market, there is tremendous scope for development of new businesses. For environment lovers and believers in recycling, this opportunity has come up as a ray of hope in wake of increasing global warming concerns. Entrepreneurs alike are beginning to take up the idea of generating profits from wastes. Who would’ve thought, a landfill would one day spring up a gold mine!

Reading guide:

Green to Gold by Daniel Esty and Andrew Winston

- Prerana Manvi