Economic and other implications of integrated chain management: a case study

In this article, the concept of Integrated (Substance) Chain Management (ISCM) is discussed. The definition of ISCM, motives for ISCM, conditions for implementation, different points of view and a five-step model are dealt with. In addition, a number of possible barriers on the road to ISCM are discussed. The model is applied to a stonewool-producing company in the Netherlands. This company set up a recycling project in the form of a briquetting factory. The substance-flow sheets show that after implementing the briquetting factory, almost all process wastes are used in the factory and that fewer virgin materials have to be used. From an economic point of view, production in a more sustainable fashion is very unattractive: production costs per ton of stonewool product rose as a consequence of the use of the briquettes as an input. The barriers connected to ISCM are mainly economic and regulatory. Solutions for the Rockwool company may include engaging in environmental product stewardship and a realignment of the government policy towards dumping re-usable and non-separated building and construction waste.