Allard Pheifer - Philips - Circular Economy

September 2015 Philips Healthcare1

Circular Economy@Philips

Allard PheiferPhilips HealthcareSeptember 2015



• Enables economic growth while decoupling it from resource consumption.

• It is a driver for innovation in the areas of material-, component- and product reuse, as well as new business models such as solutions and services.


• Philips Healthcare provides full service contract to her customers

• In these contracts ownership remains with the customer


• Performance based managed lighting and service

• In collaboration with Cofely, Philips sells the performance to Schiphol

• Ownership of the fixtures remain with Philips, Cofely is responsible for maintenance, no capital investment required


Refurbishment Diamond Select Business Line

• Careful selection• Cleaning & component replacement• Configured to customers needs• Latest Updates• New look & feel• Full warranty and support


Part Harvesting

• To collect, clean, separate and test equipment parts.

• Avoids value leakage and ensures maximum usage of parts of our medical equipment

• Reducing Last Time Buys, redesigns, material usage and costs. Extends EoL of systems.

• Better trade-in price to stimulate upgrades and new sales


Recycling

• End-of-life components will be broken down to basic materials that can be recycled to be inserted back into the value chain.


Enablers

Design

Collaboration Reverse Logistics

New Business Models

The

customer

“I’m not interested in the product,just the performance. I want to buy light, and nothing else.

Thomas Rau, RAU Architects



Like all major transitions in human history, the shift from a linear to a circular economy will be a tumultuous one.It will feature heroes and pioneers, naysayers, victories and setbacks. But if businesses, governments and consumers each do their part, the evolution of innovative business models and closed-concepts like remanufacturing, refurbishing and part harvesting will put the global economy on a path of sustainable growth. Many years from now, people will look back on it as a revolution”

Frans van Houten, Philips

The

dilemma

Circular economy is often perceived as a sustainability concept and therefore seen as a ‘nice to have’.

How can circular economy be part of a sound business strategy to ensure business success for years to come?

Allard Pheifer - Philips - Circular Economy

Economy & Finance