PRODUCT SERVICE SYSTEMS
6.43. Although approaches such as lean manufacturing
and six sigma have contributed to waste reduction, the CIKTN and
CIA commented that their benefits are limited because they are
"largely concerned with optimising an existing product and/or
process" (p 135). Beyond this, there is scope for further
innovation to provide the user requirement in a completely novel
way. The Scottish Environment Protection Agency believed "it
is not only the design and materials used which will have an impact
on waste generation … the marketing model is also important."
The Agency added that "a switch to product service systems
could provide the impetus for waste reduction" (p 484).
6.44. Whereas products are normally sold outright
and then sent to landfill at the end of their lives, product service
systems offer the potential to significantly reduce waste by leasing
a product on a temporary basis and then taking it back. In this
way the system has two purposes: it satisfies consumer needs to
change products before the end of their natural lives; and producers
can also fulfil their responsibilities by taking back materials
and components for recycling or re-use. Dr Chapman, University
of Brighton, highlighted the fact that such service systems could
foster brand loyalty and pointed out that although a company might
sell fewer units, it could "generate further turnover over
the extended lifespan of an object through service points, repair
points and upgrade points" (Q 396).
6.45. Ms Brass, Founder of the SEED Foundation,
noted that designers were crucial in identifying what the "real
problem" was and finding a convenient solution. She cited
an example of a different type of product service system provided
by Streetcar, "a flexible car-hire service that affords people
the mobility of a private vehicle without the associated inefficiency
and costs" (p 186). This service allows "people
in cities to find a car close by which they can get into, drive
to where they are going and leave it in the street" and is
a "fast-growing, very successful business." Ms Brass
added that the service had developed a very user-friendly interface,
"designed by a group of service designers" which was
crucial to making such a service a success. She conceded that
there were still very few examples of product service systems,
but insisted that "there are examples of this beginning to
work" (Q 388). The RED Initiative added that although
design could be useful in minimising the environmental impact
of materials, it had "a pivotal and potentially more critical
role to play in changing consumption patterns. In order to achieve
a sustainable society it is critical that alternative lifestyle
solutions are designed, developed and adopted" (p 204).
6.46. Dr O'Connor pointed out that the recycling
and recovery infrastructures needed to make this strategy successful
were complex and there were still "quite a lot of issues
that need to be addressed to make this a successful business model"
(Q 389). Miss McCain from the RED Initiative also emphasised
the need for a competitive advantage in order for these schemes
to work. She noted that the low cost of many items meant "you
could actually go out and buy one for more or less the same price
as it would be to hire one" (Q 409). We recognise that
there would also be technicalities to clarify such as when capital
tax allowances could be claimed. So although this strategy offers
the potential for substantial waste savings, more work is therefore
needed before it can become a ubiquitous, marketable strategy.
Recommendation
6.47. There is scope for waste prevention
to be integrated into sustainable business models but the implementation
of such strategies will take time. The success of sustainable
business models depends upon the size and structure of the business,
the take-back and recycling infrastructure, the current market
value of products and consumer perceptions. Evidence supporting
these strategies is scant but growing so we recommend that the
Department for Business, Enterprise and Regulatory Reform, along
with business support agencies and industry, should continue to
monitor such business models, assessing the barriers which inhibit
their adoption and reviewing the range of policies and incentives
that might be required to encourage their implementation.
41 Cambridge Econometrics and AEA Technology, The
Benefits of Greener Business: Final report submitted to the Environment
Agency, 2003. Back
42
Written Answer to the House of Commons, HC Deb 4 March 2008 col
2285W. Back
43
See Appendix 6. Back
44
Ibid. Back
45
Federation of Small Businesses, Social and Environmental Responsibility
and the Small Business Owner, 2007, pp 4-5, 8, 9. Back
46
Environment Agency, Scottish Environment Protection Agency and
the Northern Ireland Environment and Heritage Service, SME-nvironment
2007: UK summary.
(See
http://www.netregs.gov.uk/commondata/acrobat/smenvironment07uk_1856733.pdf).
Back
47
Gray and Charter, Remanufacturing and Product Design: Designing
for the 7th Generation (see http://www.cfsd.org.uk). Back
48
See Appendix 5. Back
49
See http://crisp.international-synergies.com/_layouts/Downloads/match_1675_giffords_and_grainger_worrall.pdf.
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