How a closed-loop supply chain can create new opportunities
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Presentation from NRF 2020: Retail’s Big Show. - Phil Graves, Head of Corporate Development, Patagonia - Andy Ruben, CEO and Founder, Yerdle - Tom Szaky, CEO, TerraCycle
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How a closed-loop supply chain can create new opportunities
- 2. Yerdle The Future of Retail is Circular NRF Jan 2020
- 3. Recommerce is on the same trajectory as eCommerce Years Recommerce eCommerce $51b $24b 2018 2023 5 10
- 4. Sustainability Gen Z & Millennials New Models 37%
- 6. The future of Recommerce is Branded Recommerce.
- 7. Worn Wear has become synonymous with the Patagonia brand, and is positioned to account for a double-digit percentage of Patagonia’s overall business.
- 8. The best jacket you can buy for the planet is one that already exists
- 13. 13
- 14. COST OF LOGISTICS COST OF PROCESSING MATERIAL VALUE RECYCLABLE <
- 16. 16 extract Recycling The Recycling Bend different product product
- 18. 18 Upcycling Has Promotional Value Stephen Colbert rocking Doritos Upcycled Jacket by TerraCycle.
- 19. TerraCycle ®, the TerraCycle Logo ®, and Brigade® are all Trademarks of TerraCycle Inc. used under license, www.terracycle.com, Toll-free 866.967.6766. 19 CASE STUDY: CLOSED LOOP APPLICATION Side Wall
- 23. TerraCycle ®, the TerraCycle Logo ®, and Brigade® are all Trademarks of TerraCycle Inc. used under license, www.terracycle.com, Toll-free 866.967.6766. 23
- 26. 26 extract Recycling The Recycling Bend different product product
- 27. 27 Closed Loop Recycling RecyclingRecycled same product product
- 28. 28
- 30. 30 Closed Loop Recycling RecyclingRecycled same product product
- 31. 31 Reuse product
- 32. 32 Loop is a global platform that enables consumer product companies and retailers to shift from a disposable supply chain to a durable one.
- 33. WISDOM FROM THE PAST Refillable durable packaging used to be the norm. When a package is considered an asset its allocation per fill is the cost divided by the number of uses it can bear. The more durable the package the lower the cost per fill. ASSET
- 34. THE CURRENT REALITY Disposability is cheap and convenient. COGS When a package is considered a COGS (Cost of Goods Sold) its cost is fully allocated per fill. The cheaper the package the lower the cost per fill.
- 35. How do we solve the unintended consequences of disposability while maintaining its virtues?
- 36. Loop fundamentally changes the ownership of packaging. $0.10 Packaging cost Increasing consumer delightCOGS to Brand Asset to Brand Cost per use $0.10 $3.00 $0.03 + cost of cleaning 1 use 100+ uses
- 37. Durability enables reusability, design & new features.