Circular Economic Surplus Asset Management: A Game Changer in Life Sciences

Abstract

The integration of Surplus Asset Management (SAM) with the circular economy (CE) provides a solution to optimize the use of resources, assets, and equipment throughout their life cycle, enabling new business models, increasing profitability, achieving sustainability goals, and plus reducing obsolescence and waste. We introduce the CE-SAM as a business approach to create value by extending the life cycles of discarded useful equipment. We distinguish four types of value: 1) sourcing value, 2) customer value, 3) information value, and 4) environmental value. Carbon footprints can be reduced by up to 80% by redeploying equipment depending on residual value and customer needs. CE-SAM can be a business game changer if it is integrated as part of the business strategy. The implementation challenges can be best tackled through the collaboration of different actors along the value chain, depending on their capabilities and capacity. REUZEit, a case study company, provides a feasible case study that services life science and pharmaceutical companies to optimize the use of their resources, assets, and equipment, to reduce obsolescence, waste, and increase profit at the same time.