KMD

Circular Economy

KMD is the ISO 9001:2015 Quality Management System qualified company. The UN Global Compact participant company.

Circular Economy | Environmental issues | Zero Emission
The development of re-X (reduce, reuse, recycle, refurbish, resale, re-production, re-model, re-change, remanufacturing, etc.) technology and practices is one of the focuses KMD is considering to leverage this technology & practices for the transition towards a Circular Economy, environmental issues, and Zero Emission concept.

The reference mentioned that, Circular business models can be defined as business models that are closing, narrowing, slowing, intensifying, and dematerializing loops, to minimize the resource inputs into and the waste and emission leakage out of the organizational system.

https://en.wikipedia.org/wiki/Circular_economy

KMD Business Models for a Circular Economy

Business Model
1\| Procurement	– Sell renewable energy and renewable materials (e.g. Solar power, Inverter, UPS, PowerBank @ KMD Sales) – Use renewable energy and renewable materials inside the company (e.g. LED light, Solar power, Inverter, UPS, Copier @ KMD Offices)
2\| Collection and Recycling	– Collect products whose service lives have ended (e.g. used computers & accessories @ KMD Offices) – Collect waste and by-products that are generated in the company’s processes & operations (e.g. used computers, old record books/papers @ KMD Offices \| donation of computers to schools)
3\| Extend product service lives	– Recover used products (e.g. regular maintenance of computers, office equipment, power generators, vehicles @ KMD Offices) – Collect and resell used products (e.g. used computers & accessories, office equipment, etc. @ KMD MRS) – Get profits by upgrading and changing/repairing disposal parts (e.g. upgrade computers, mobile devices @ KMD Service) – Focus on customers who prefer premium quality, and make products that will last long time (e.g. selling premium quality products, providing quality services, that last long time @ KMD Sales) – Make earning models such as pay-per-service (cost is incurred in accordance with the amount used) (e.g. computers rental, service contract @ KMD MRS)
4\| Convert from ownership to sharing	– Make more efficient use of products/services possible by means of lending, borrowing, sharing, exchanging products, and take full advantages on products & services (e.g. Server & network, printer @ KMD Offices \| donation to schools)
5\| Change products into services	– Make the model where people only pay for the amount of products & services that they use as Pay-as-you-go, lease, rental, performance contracts, etc. (e.g. education training, computers rental, service contract @ KMD Institute, KMD MRS)

– Sell renewable energy and renewable materials

(e.g. Solar power, Inverter, UPS, PowerBank @ KMD Sales

– Collect products whose service lives have ended

(e.g. used computers & accessories @ KMD Offices)

Our KMD Group procurement used to do sourcing of vendor from local and global suppliers in total around 500.

We change our procurement practice with below principles and the outcome as below:

Human Rights, Labor, Environment and Anti-Corruption

Although other factors have met 99.9%, Environment has still challenges and we manage to change with vendors as below and see the progress of 50% in vendors behavior in 2019:

Moving communications of product info, prices list and other paper based to electronic form and waste disposal to recycle.
Following up with their waste management of end products.
Sourcing of certified products for internal use, distributions and reselling.

Our group has been using IT equipments in total of around 600 pcs.

Every year, 10% of those need to be replaced.

We take those from operations, refurbish and resell to secondary market using different channel to low income market users.

Impact: Qualified Suppliers, Save energy, Save material, Reserve resources

Impact: Operations efficiency increased, less maintenance, more accessible to ICT technology to some group of low income users, less impact on environments from electronic waste, no repair cost.

– Collect waste and by-products that are generated in the company’s processes & operations

(e.g. used computers, old record books/papers @ KMD Offices | donation of computers to schools)

Recover used products

(e.g. regular maintenance of computers, office equipment, power generators, vehicles @ KMD Offices)

Group paper usage ~ 680,000 sheets as of 2018.

Encourage of using shared drive, electronic report, re-using of non-confidential one side blank paper and more focus on those practices in 2019.

– 20% decrease of paper usage in 2019

– Staff using water bottle with refill to staffs and giving out water bottles to guests upon requests only.

It results in using water bottle 564 pcs in 2019 in compare with close to 1000 pcs in 2018.

Our retails provide only recycle bag to customers 50,000 bags.

Our institute has 350 pcs of Desktops and 20% of those need to upgrade every year to train new courses which demand higher performance and operations.

And regular maintenance of all PCs and facilities by related service team had extended usable life span of the equipment.

Impact: Clean, healthy environments, less waste products

Impact: Save cost, Reserve resources

– Collect and resell used products

(e.g. used computers & accessories, office equipment, etc. @ KMD MRS)

– Focus on customers who prefer premium quality, and make products that will last long time

(e.g. selling premium quality products, providing quality services, that last long time @ KMD Sales)

300 over devices every year

Selling premium quality products: 20% of total sales

Providing quality services and awareness to last the product life span with customer

Impact: Save cost, Save material, Reserve resources, Get profits, Reuse Parts to limit waste to environment

Impact: Quality products, Long life

– Make earning models such as pay-per-service (cost is incurred in accordance with the amount used)

(e.g. computers rental, service contract @ KMD MRS)

– Make more efficient use of products/services possible by means of lending, borrowing, sharing, exchanging products, and take full advantages on products & services

(e.g. Server & network, printer @ KMD Offices | donation to schools)

Provide Leasing/Rental Options @ KMD Enterprise

– Copier machines

– Servers/PCs

– Maintenance Service bundled

Move to use cloud based technology centric approaches to have better collaborations and less physical/personal storage, printings.

– Adapt to Office 365 and utilizing all features

– Change to centralized printing with record usage

Impact: No Capital Expenditures and Customers could run with Operation Expenditures model. Products are well maintained as maintenance service is included and longer life span.

Impact: Save cost, Common share, Efficient use, Increase productivity

– Make the model where people only pay for the amount of products & services that they use as Pay-as-you-go, lease, rental, performance contracts, etc.

(e.g. education training, computers rental, service contract @ KMD Institute, KMD MRS)

Offering installments plan on all the products we offered.

Education training: 30% of total diploma and Degree students

Retails: 70% of sales on mid to high value items

Impact: Affordability for customers, get quality product and education services with regular income, Save cost for customers, New model of services

Zero Emission
The concept of zero emissions is based on improving technologies and processes to the point of maximum resource productivity and virtually no waste. This goal can be approached in a number of ways, including technological innovation, pollution prevention, cleaner production, by-product synergy, or industrial ecology. All of these are ways of eliminating wastes or turning wastes into profitable resources, while preventing harm to environmental and human health.

Business Model
1\| Procurement	– Sell renewable energy and renewable materials (e.g. Solar power, Inverter, UPS, PowerBank @ KMD Sales) – Use renewable energy and renewable materials inside the company (e.g. LED light, Solar power, Inverter, UPS, Copier @ KMD Offices)
2\| Collection and Recycling	– Collect products whose service lives have ended (e.g. used computers & accessories @ KMD Offices) – Collect waste and by-products that are generated in the company’s processes & operations (e.g. used computers, old record books/papers @ KMD Offices \| donation of computers to schools)
3\| Extend product service lives	– Recover used products (e.g. regular maintenance of computers, office equipment, power generators, vehicles @ KMD Offices) – Collect and resell used products (e.g. used computers & accessories, office equipment, etc. @ KMD MRS) – Get profits by upgrading and changing/repairing disposal parts (e.g. upgrade computers, mobile devices @ KMD Service) – Focus on customers who prefer premium quality, and make products that will last long time (e.g. selling premium quality products, providing quality services, that last long time @ KMD Sales) – Make earning models such as pay-per-service (cost is incurred in accordance with the amount used) (e.g. computers rental, service contract @ KMD MRS)
4\| Convert from ownership to sharing	– Make more efficient use of products/services possible by means of lending, borrowing, sharing, exchanging products, and take full advantages on products & services (e.g. Server & network, printer @ KMD Offices \| donation to schools)
5\| Change products into services	– Make the model where people only pay for the amount of products & services that they use as Pay-as-you-go, lease, rental, performance contracts, etc. (e.g. education training, computers rental, service contract @ KMD Institute, KMD MRS)

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