REACH-SERV arrow Case studies arrow CASE STUDY: Mineral Oil Based Materials
CASE STUDY: Mineral Oil Based Materials Print

Background:                 

Company X manufactures a range of industrial chemicals using mineral oil based raw materials and supplying other industrial users. Company X wants to know if there are  alternative Supply Chain scenarios, which could supply alternative production routes that would be more sustainable and REACH resistant and if such routes would be profitable or not. They are looking for a tool that will help them assess the various scenarios and select the best scenario for future investment.

User(s):

Small and Medium Enterprises within the Speciality and Fines sector Preconditions:They know the composition of their products, and have an inventory of substances they manufacture/buy in.  They have access to the Toolbox. They know the effect they want from an alternative chemical and have some target molecules to evaluate 

Description:

 An alternative ‘effect chemical’, (possibly based on a more sustainable active ingredient), is selected and the toolbox is used to confirm that the selected chemical is REACH compliant The company also needs to be able to evaluate the potential production and other supply chain costs and confirm availability of raw materials etc. Another possibility is the need to be able to improve waste streams, disposal costs. In both cases there is a need to assess the implications for the development, pilot and conversion to full scale manufacture of such an alternative routes. The company then needs to consider the implications of introducing a new product into the market place in terms of establishing comparative performance levels with the existing product and it uses the toolbox to achieve this efficacy analysis. The business now has a potential route forward based on a REACH compliant chemical with a known band of production  and supply chain costs and is able to market the product as ‘green’ and REACH compliant and twice as effective per Kg as its previous product.

Requirements for the Toolbox

  • A methodology for evaluating a possible alternative route (possibly based on NPV concept), which ensures that the supply chain works at all its connections. It should consider how, for the predicted annual production volumes for both current and alternative production route(s), and their corresponding input requirements (in terms of raw materials & energy) future predictions/scenario will impact on their evolution. Typically it should consider how:
  • changing supply prices may affect the switch point
  • to assess the processing structures up-steam and downs steam
  • to estimate operating costs
  • to estimate capital costs
  • to estimate migration costs
  • to assess selling price
  • to establish financial criteria - pay back
  • to lay out a sequence of events



Last Updated ( Monday, 08 December 2008 )
 
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