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Bringing Circular Manufacturing To Electronics
Technology Category
- Functional Applications - Inventory Management Systems
Applicable Industries
- Electronics
Applicable Functions
- Logistics & Transportation
- Warehouse & Inventory Management
Use Cases
- Track & Trace of Assets
- Inventory Management
- Supply Chain Visibility
Services
- System Integration
- Training
The Challenge
The modern world has a big electronics habit and it’s getting bigger all the time. Electronic devices keep us connected and on the go, but when they break or become obsolete—which is often very quickly—they frequently end up in the trash. Electronic waste, or e-waste, is a problem not only because of the volume of material that is being discarded, but also because some components can cause serious pollution. During 2014 alone, nearly 42 million tons of e-waste was created around the world. E-waste recycling is growing, however. In the United States, about 29 percent of e-waste was recycled in 2012, up from 19.6 percent in 20101. Better still, the world is recognizing that past recycling practices, such as sending devices to developing countries for disassembly and disposal (where they are often harmful to local environments) can be replaced with something better. That improvement is circular manufacturing, in which materials are collected to be refurbished or re-manufactured. Flex and Sinctronics realized that a market such as the region around São Paulo, Brazil, where manufacturing and re-manufacturing sites are close together, could help them showcase the true potential of a circular economy.
About The Customer
Sinctronics, a Brazilian company founded by Flex, is pioneering circular manufacturing processes that are making the information technology industry greener and more sustainable. The company describes itself as the first “integrated ecosystem” for sustainability in the electronics market. To succeed in circular manufacturing, it needed to build out four separate functions: reverse logistics, recycling facilities, R&D through its Green IT Innovation Center, and reverse supply chains. The company has had to invent virtually every process related to circular manufacturing. Sinctronics’ logistics infrastructure now covers all of Brazil, with dedicated vehicles in high-volume areas.
The Solution
Sinctronics began with reverse logistics, because that is the most expensive part of the entire process, accounting for about 60 percent of total cost. The company has had to invent virtually every process related to circular manufacturing. The company’s investment in innovation is driven by the belief that the new circular economy will ultimately be more efficient than the old linear model. The plastic parts produced by Sinctronics through its re-manufacturing process represent a savings of up to 82 percent on energy over normal plastics production, and an 82 percent reduction in greenhouse gas emissions. Thanks to the processes that Sinctronics has pioneered, 97 percent of recovered material is going back into the supply chain, with Sinctronics selling customers both finished products and reused raw materials that they can redevelop on their own. Sinctronics’ Zero Waste Initiative also means that less material is going to landfills. Sinctronics is improving circular manufacturing in other ways, too. One of the most radical changes has been its creation of a reverse logistics infrastructure. Reverse logistics was not common in Brazil, so logistics companies charged more for it than the regular process. Sinctronics developed partners for doing reverse logistics in an optimized way, tracking all the equipment and service levels involved.
Operational Impact
Quantitative Benefit
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