COMPANY NAME JG Group sp. z o.o.
COUNTRY Poland
SECTOR CNC industry
CIRCULAR BUSINESS MODEL Product as a service
CHALLENGE
The aim of the project under the Up2Circ funding was to create and implement vending machines on the market, which will enable JG Group to transform its business and create a closed-loop economy by accepting used and damaged tools for regeneration or recycling and recovery of rare earth metals. Renting or purchasing vending machines that accept returns of all our company’s tools is a milestone in the organization’s activities towards increasing the percentage of regenerated tools.
Challenge – creating a competitive product on the market with sufficient additional values that will encourage customers in the CNC industry to use machines.
SOLUTION
The production and development of vending machines further supports the company’s resource conservation efforts by supporting tool regeneration services and the wear and tear assessment of cutting tools. We successfully produced a product that, in our opinion, perfectly aligns with current trends and resource reduction efforts, ensuring competitive pricing among Polish industrial companies in international markets.
CIRCULAR ECONOMY STRATEGIES/BUSINESS MODEL IMPLEMENTED
JG Group have created vending machines designed to support tool wear management and remanufacturing. The tool remanufacturing process saves rare earth metals (tools are currently primarily carbide) and supports the circular economy in companies.
IMPACT
Environmental impact
Number of reused tool packages and a reduction in the value of packaging orders by PLN 20,000 per year.
Economic impact
A 20% reduction in the amount of materials used compared to previous years, i.e. packaging materials and materials for tool production.
Social impact
Increased awareness of circular economy practices in the CNC industry.
KEY TAKEAWAY
The company used the “product as a service” business model in the design of the machine. This was definitely an innovative action by the company on the market. Using this business model, JG Group sells or rents its vending machines, additionally providing services in the field of regeneration and disposal of used tools.
The vending machine created as part of the project handles the return of tools intended for regeneration and disposal. It closes the product circulation between the supplier and the customer and repeats it several times, reducing the material orders for the production of new tools by the manufacturer/supplier.