ABSTRACT
The circular economy needs new business models to retain the value of products and to help to close the loop. The business models range from full performance-based models through to take-back and remanufacture. In the performance-based models, the manufacturers retain ownership of the products whilst providing a service to the customer. The take-back model proposes selling products that are designed to be returned and remanufactured with incentives such as deposits, or guaranteed buy-back, to encourage customers to return the used products when no longer required. The industrial economy is transforming from a production-based model into a more intelligent performance-based model. Despite the proven benefits that selling performance provides, too many managers and policy makers focus on designing, manufacturing, and selling goods using costly economic models and production methods. Rype Office draws on circular economy principles to create high quality furniture with less environmental impact, whilst creating local jobs through remanufacturing.
