QUALITY MANAGEMENT BLOG

Circular Economy and Quality? - A Perfect Pair!

The highest premise of quality management is optimal customer benefit and the highest possible customer satisfaction. Many innovative, successful companies have long since proven that these desired effects are closely linked to a functioning circular economy.

Customers prefer companies and brands that act responsibly in the procurement of raw materials, consciously develop and produce in a resource-saving and durable manner and also offer a smart solution for the end of the product life cycle, for example by means of waste avoidance, 100 percent recycling and the reuse and recycling of raw materials.

The term quality has become more complex. In addition to a product that lasts a long time, other criteria are now important for the purchasing decisions of enlightened consumers:

  • Which raw materials are processed?
  • What energy balance is used for production (water-saving, renewable energies)?
  • Does the production process generate pollutants and waste?
  • How does the end product get to the customer (ecologically sound supply chains)?
  • Can the product be repaired or extended?
  • What happens to the product after its life cycle (recycling, reuse)?

For decades, the industrial economy followed the maxim of using raw materials effectively, producing cheaply, selling products at a profit and then disposing of them cheaply. This type of production is largely responsible for the disastrous consequences such as environmental pollution and global warming. In the globalised economic construct, this process has not only proven itself, but has even been significantly reinforced. Due to cheap production in Asia, for example, the effects of this economy can only be seen indirectly in the countries of the polluters, for example in the disposal of cheap products in domestic landfills. The causal connections remain largely hidden from consumers, because production takes place in Asia.

The term quality is therefore much broader today than it was two or three decades ago. Quality management consequently means optimising these aspects in the company with regard to sustainability and communicating them accordingly.

Cheap was yesterday: Purchasing Raw Materials

The principles of regionality and cycle neutrality apply to the sourcing of raw materials for production. When selecting raw materials, care should be taken to ensure that they come from certified sources and are not finite. Responsible processing of wood, for example, means that the manufacturer should be able to prove the origin. Suppliers, for their part, should prove that the same amount of wood that is consumed grows back in a certified way. Furthermore, it should be made clear to customers what happens to the wood products when they are no longer used. While cheap pressboard wood that is laminated during production has to be disposed of as problematic waste, solid wood can be shredded and then thermally recycled, for example in a manufacturer's combined heat and power plant.

Energy Balance: Renewable Energy is increasingly becoming the Standard

Machine production needs a lot of electricity. If this comes from renewable energies such as wind power or photovoltaics, production can be CO2 - and thus climate-neutral. If electricity is bought in, it should be supplied in the form of green electricity. Most industrial processes require a lot of water in addition to electricity. The water should be cleaned and reused in a verifiable cycle. Clean electricity and economical use of fresh water can credibly and verifiably improve the energy balance.

Avoidance is the Top Priority: Pollutants and Waste

Consumers are becoming more and more sensitive to the contamination of products with pollutants and waste. Products that are under general suspicion of "emitting", for example, such as PVC floor coverings or cheap shoes produced with glue containing harmful substances, are losing more and more acceptance on the market. Consumers are willing to spend more on industrial products if they believe in their health safety. If the waste balance during production is also right, this is considered a tangible quality plus.

Short Transport Routes are in Demand

The current situation in particular shows how fatally disruptions to global supply chains affect the supply of goods. In addition to reliability, the transport routes themselves now play a major role in purchasing decisions. Short distances with means of transport that are as pollutant-optimised as possible are very popular with consumers. Containers from Asia are becoming more and more difficult to accept - and are also becoming more and more expensive. Under certain circumstances, it may be worthwhile to relocate production back to Europe. When it comes to delivering products, "green" partial supply chains are becoming more and more popular, such as CO2 -neutral delivery over the last mile with e-vehicles.

Repair and Spare Parts Service bring Plus Factors

Over the last 50 years, Western industrialised countries have mutated into throwaway societies. In many cases, it is cheaper for companies to completely replace a defective product instead of offering a repair service. Many consumers no longer accept this without hesitation. Today, it is considered a sign of quality to offer a repair and spare parts service for products and thus to noticeably extend the life cycle of consumer goods.

Recycling Concepts after Use

Another purchasing argument is the question of the recyclability of consumer goods. Clever recycling concepts are in demand. Textiles that are processed into new collections after being shredded. Plastic bottles from which functional textiles are made, packaging that becomes garden furniture in its second life - such concepts generate lively interest among consumers, provided the projects are credibly and verifiably installed.

Conclusion

Quality and ecology continue to grow together as a production concept. Companies that consistently stick to the "old concept" and continue to produce products as effectively as possible from the cheapest raw materials that have to be disposed of expensively will lose customers in the long run.

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