Waste Management 4.0

 

Abstract

While sustainable development touches eventually every single aspect of our life, the progress made through many sectors towards sustainable future seems pacing at different speeds dictated by the nature of the sectors themselves. The waste and recycling sectors evolution drag probably for the same reasons that caused these sectors to develop originally in such slow pace. Indeed regulations in the developed word drawn a clear path on how to move the sector forwards however the emergeing market (even where relatively regulations exist)  still lack the resoluteness needed to transform the sectors. With the inevitable need to transform the waste and recycling sectors, the aim of this paper is to invesitgate synergies between different concepts such as circular economy, block chain, and industry 4.0 in order to identify potential development areas which if invested properly, the waste and recycling sectors could leap forward and transform into models of higher sustainability efficiency and where changes in our day to day live could be eventually observed.  

 

Waste Management Today

The world generates 2.01 billion tonnes of municipal solid waste annually, with at least 33% not managed in an environmentally safe manner and the waste generated per person per day averages to 0.74 kilogram but ranges widely, from 0.11 to 4.54 kilograms. Today, the Middle East and North Africa region is producing the least amount of waste (6%). However, some of its cities have the highest waste generation ratios worldwide and its waste generation is expected to double by 2050 [1]

 

 

 

 

The increase of waste across the years have led to pollution across the globe [2]. This is caused due to the runoff from landfills and open dumps onto the surface and groundwater sources or soil leading to the disruption of many ecosystems, and the bioaccumulation of pollutants in the food chain and therefore causing multiple diseases. In addition to that, landfills produce gases that are emitted to the atmosphere and that increase the global warming effect. Furthemore, another contributor to global warming effect, incineration is the process of burning waste releasing toxic fumes into the air contributing to air pollution. Therefore, the intentional and unintentional open burning of waste generates toxic air pollutants that endanger the lives of many. Also, the mismanagement of municipal waste causes the loss of resources that can be recovered and returned to the economy and be further used instead of depleting natural resources.

Evidently, the increase of the amount of waste over the years is alarming since the related pollution would only increase; thus, a transformation journey in waste management is needed in order to cope with the future challenges. With the speed and complexity of the changing world, the waste management must be revolutionalized to adapt to the evolution process. This paper suggests that digital transformation would spark an uplift in the waste management industry.  

 

Connecting Industry 4.0, Carbon Emissions, Blockchain and Circular Economy 

 

Industry 4.0 

Increasing automation and the use of smart machines and advanced factories are becoming inevitable. Coupled with informed data, it leads to produce goods more efficiently across the value chains. Though it produces less waste, it still eventually funnel residues in the waste management sector. The years of the Covid-19 pandemic, with what it carried in terms of scarcity of resources and restrained access to raw materials, mandated the necessity of change in industries, leading to a wider acceptance of Circular Economy and Industry 4.0 principles. The latter has been presented as an advanced industrial revolution, which is dependent on the digitalization of processes that would yield an increase in net profits, improved services and industry development, decrease in business costs and a potential drop in the carbon footprint [4]. 

Carbon Emissions

On a different note, Carbon emissions have been increasing throughout the years, global warming is on the rise beyond most forecasted scenarios, and the international community adopted the Paris Agreement on 12 December 2015 as the appropriate response to the climate change challenge, whereby the goal is to limit global warming to below 2ºC when compared to pre-industrial levels [5]. Since then, low-carbon solutions and new markets sparked, and cities and companies established carbon neutrality targets within a broader framework known as decarbonization which refers to the reduction of carbon dioxide emissions resulting from human activity in the atmosphere [6]. A smart decarbonization project start would include monitoring platforms that would track and calculate the carbon dioxide emitted within selected industries to establish the emission baselines of today.  

Blockchain

A technology known for its traceability feature, blockchain technology is “a distributed database that is organized as a list of ordered blocks, where the committed blocks are immutable.”[7] Blockchain has been identified as one of the most disruptive technologies aiming to change multiple industries in the coming years [7]. Many articles have been published indicating the usage of blockchain technology in different industries along with its benefits and challenges, yet the literature is still in its primitive stages [8]. Blockchain has been used amongst various industries such as transport and supply chain management, energy sector, agri-food products, shipping, pharmaceutical industry, health, bioeconomy, tourism and culture sectors [7] [8] [9] and indeed sustainable development is expected to benefit accordingly. Also, multiple articles have suggested the important role of blockchain technology in circular economy.

Circular Economy

Though the first time it was spoken of was in 1966 and for many years could not grasp the right momentum, Circular Economy (CE) became associated with climate-neutrality and emerged as one of the promising models to achieve sustainable development [10]. One definition of CE is a “sustainable economy and society with zero carbon emissions, and a one-planet footprint, where all energy is derived from renewable resources, which are naturally replenished.”[11]

Rising of environmental awareness due to climate change observations and consequences, continuous depletion of natural resources, scarcity of many rare elements and continuous rise of waste management costs drew the need to analyze thoroughly the data, rethink resource management, and reconsider the values of wasted materials before they end up in the landfill and evidently leading to the increase of GHGs throughout the process. While digital transformation is considered one of the most enabling factors associated with Industry 4.0, it is expected to revolutionize the CE, and aspire to develop blockchain to support it and its association with carbon neutrality [7] [11].

Multiple articles have suggested that blockchain technology could be a positive tool in circular economy [7] [8] [9] [10] [11]. To begin with, since most values chains end up funneling some of their remaining residues into the waste management industry, these pieces / blocks of residues might be transformed into orderly set blocks belonging to bigger chains. Blockchain might offer a chance for a holistic view of all the different pieces of waste management while still being able to link them to their original value chains and therefore enabling CE. This would promote proper treatment of resources while data has been collected and shared within a safe environment, aids cities in becoming smart, healthy and sustainable, and is expected to enhance the communication between stakeholders and the supply chain [12].

Furthermore, blockchain has been identified as an enabler for the R strategies (Reduce, Reuse, Recycle and Recover) would be applied [SK1] [7]. The availability of information within the blocks, creates an information hub for stakeholders which eventually serves as the platform for Track and Trace, one of the most prominent utilizations of blockchain in CE. Similarly, multiple life cycles of materials could be tracked when Reused, a market where reverse logistics play essential role and support decarbonization goals.

At the Recycle front, the markets for recycled materials would get access to accurate and well-defined recyclables and evidently benefit from an optimized supply chain providing the most convenient use of recycled materials. The Reduceand Recovery strategies are the least mentioned in research and practice thus still represent an opportunity where blockchain is yet to be invested. below an overview of the structural dimensions of Blockchain within CE:

Table 1. Overview of Blockchain in Circular Economy Dimensions [7] 

As presented in multiple articles, the main usage of blockchain technologies in the waste management industry was documentation, certification, tracing and tracking, tokenization and process automation [7] [8]. The trace and track category had the lion share and it always included product availability and ownership. Succeeding that, is its usage in documentation which is inclusive of permitting issues. Following that is the certification process where this transforms into international certificates. Also, tokenization (which is the first application of blockchain technologies, namely cryptocurrency) is considered useful for the waste management industry, as this processes payment gateways, along with possible incentive schemes that could be placed in this platform.

 

 

Stakeholders

 

Stakeholders of the waste management industry, include regulators, public clients, private clients, waste service providers and communities. 

Regulators could be public environmental agencies, ministries of industries and trades, ministries of interior etc.. 

Public clients are mainly the municipalities/local authorities and the waste management authorities responsible for the execution of the waste management works provided by the state. 

Private clients are the private commercial entities that produce waste and are held liable for the safe disposal of their waste. Among their responsibilities, is to choose the right waste management services providers who could advise, collect and dispose of their generated waste. 

Waste service providers are responsible for waste collection, transportation, segregation, recycling, reuse, treatment and disposal on behalf of public and private clients and are governed by regulators. 

Communities are the society and people that live within the city and eventually observe the quality of the services and eventually endure the consequences of the services provided. 

Digitalizing Waste Management

 

Digital Transformation of the waste management industry requires a digitalization of processes and systems associated within the industry. This often requires delving into the whole waste value chain and understanding the complexities of different concerned stakeholders. This would include regulators, governmental bodies, service providers and the communities where waste management solutions are being provided. 

 

Building a roadmap includes deep diving into the processes across the value chain, prioritizing a way forward for engaging stakeholders, and defining the sequence of digitizing priorities across stakeholders based on the potential tangible benefits that will emerge.

 

Digital Transformation would involve a discovery phase where service design and delivery processes would be mapped. Furthermore, a stage assessment would be undertaken in order to deliver a digital transformation plan within target areas in the waste industry, evolving eventually into transforming the whole industry.

 

 

 

The Boundaries

 

The Waste management industry is highly dependent on  the technical, governance, and legal  infrastrucutres; the latter often dictates the tools and the methodologies whether at the collection side, treatement, or the disposal end. At the legal front, the WM in the emerging markets share many similar challenges emerging out of:

 

1- The ambiguity and the lack of updates in the legal works.

2- The lack of enforcement of the existing regulations.

3- The communities’ sense of entitlement to free waste management services. 

 

This project will focus on the emerging markets being the most vulnerable and indeed the most in need for the evolution of the WM practices. The emerging markets are stretched across the southern hemisphere and considered home for more than 85% of the planet population. Another angle to consider would be the cultural perspective which indeed relates to the awareness needed to be raised and to the essential role it plays in shaping the future trends of waste generation in the communities; the project would focus initially on the African markets, the Middle East and the Indian subcontinent where languages and ancient habits could be called upon to transform into a force behind the project and helps scaling it faster i.e. material developed in Arabic could be easily adapted to the whole Arab word.

 

Testing Grounds

 

Like all transformation projects, testing grounds need to be established so that new processes and methods would be tested and evaluated. 

 

At the regulatory side, testing grounds would be within the compliance area, where necessary and obligatory existing regulations are checked, enforced and applied. All waste management activities carry a compliance stamp where permitting constitutes the biggest element of the whole enforcement process. 

 

At the public side, sourcing and monitoring waste related services would be at the heart of the duties of the public sector. While sourcing is mostly managed through a form of tendering where the expectations of the client are agreed upon by a contract, monitoring is ensured through certain rewards and penalties systems enforced through SLA (Service level Agreement) and KPIs (Key Performance Indicators) again described within the contract. Sourcing and contracting constitute the main testing grounds at the public side.

 

At the private side, the client journey is managed through multiple logarithms. The client is first sourced through different leads generation techniques, then a form of quotation would dictate the engagement rules and costs, and eventually a form of contract will be signed. Furthermore, the service would be mainly delivered according to the contract signed and eventually invoiced and shared with the client. the client journey is indeed the main testing ground for the transformation of the private side.

 

At the communities’ level, public awareness and engagement constitute the main testing ground of any transformation initiated.

 

The below processes are the most relevant processes at the administrative side of the work for the continuation of the day to day business:

•   Permits

•   Tendering

•   Monitoring 

•   Services Confirmation

•   Analysis

•   Quotation Generation

•   Delivery Management 

•   Invoicing 

•   Marketing

•   Client Acquisition

•   Payments and Collections

•   Communications Engagement 

 

 

Main WM Systems

 

While diving into the testing grounds, a dissection of the main systems suggested: 

 

System #1 would be the permitting issuance whereby service providers need to obtain the permits provided by the regulators. The permitting issuance is a process where defining the requirements, gathering information, checking documentation, completion, managing stages, issuing the permits and eventually renewing them or withdrawing them, are the main system that regulates the activities delivered by service providers and their rights to operate.

 

System #2 is the public contracts which undergo a tendering process whereby the client, mostly the waste management authorities, defines the scope of work with defined SLAs and KPIs. Post the award of the tender, the contract is the main binder between the service provider and the client, whereby deployment of assets occurs as described within the contract. The latter is defined by the SLAs in which the service provider is committed to fulfill and therefore it requires proper monitoring of the service, this draws the need for the client to have improved monitoring coupled with AI which can produce smarter analysis and better solutions for the communities. Furthermore, the client would be able to have accurate measures of determining the contract nature and that leads to improved SLAs for the service provider. As a result, this leaves a greater room for improvement for the service provider, that would produce the SP to produce a new and improved service offering with an upgraded process that can handle the service delivery. This would be done through accurate monitoring of the fleets and assets as well as the monitoring of the drivers’ performance which can produce quality services.

 

System #3 is the commercial accounts journey, and which is the most extensive; the accounts journey system currently starts with a lead generation process, which evolves into quotation generation and eventually leads to contract negotiation ending with contract signature that is annually renewed. The contract is usually based on the number of lifts suggested by the service provider for a specific site and for a specific interval of time and for a specific price per service. Once a contract is signed, WM services would be delivered accordingly, and captured through specific invoicing module that allows generating the invoices and sharing it with the clients. A valuable addition to the system would be a monitoring tool used to enhance the satisfaction and happiness level across the different stages of the client journey.

 

 

 

What MVP looks like/The Start Line

 

People, fleet and equipment are at the heart of every business and managing them correctly constitutes the essential cause of every process. WM 4.0 is a large program that takes years to achieve however a Minimum Viable Product (MVP) should deliver confidence that the technology recruited and the science behind it can take such task. We are picking a normal day in a driver life to observe how it is today and how it will transform should we be able to digitize the processes correctly. Such transformation should deliver at first a much happier driver and lifts its work to a place where he/she will be proud of the advancements he/she made. 

 

Today the starting line is the extensive of a well-developed tracking tool that provides fulfillment data and drivers’ behaviors and assets’ status. The existing systems today use a pull model where a supervisory layer is needed to dive into the raw data and draw the right conclusion and take accordingly the needed steps. Next to the tracking solution, it is essential to have a time and attendance tool, fleet management and maintenance tool, and an ERP tool that manages the essential cost elements. The transformed model should present a one core tool that: 

1.     Integrate all the required front-end tools such as Time & Attendance (T&A), fleet, fuel, traffic, fines, behavior, etc.

2.     Allow planning and scheduling for all the resources activities

3.     Allow the development of front-end dashboards based for a push model highlighting real time status and exceptions

4.     Define benchmark lines leading to fast and smart decision-making dashboards on top of new developed dashboards

5.     Suggest Alternative plans mediating the existing shorts and mitigating the associated risks

 

Conclusion

The Vision 

 

At the regulators side, the project is a platform to provide thorough data to the service providers, list the permits requirements and capacities of service providers and describe and manage the permits of service providers. The public waste management bodies will be able to improve the quality of the contracts managed and the design of better contracts leading to higher level of services for the communities. 

At the private side, the clients would be able to select the service that they require at the most viable price, at the quality they are happy with and at the required schedule; and at the waste management service provider side, it would be a control tool that delivers optimized services at the most economic costs. It would also include the intelligence and learning needed to define existing cost basis and understand the embedded requirements and would eventually promote possible solutions at the most economic costs.

 

Benefits[3]

 

1.     Improved Trasnparency – an increased transparency over the systems and processes within an organization

2.     Customer centricity – improving the customer experience through gathering information to understand their needs and pain points

3.     Improved Efficiency – understanding the flaws of the data/system and improving the efficiency and promoting access to information

4.     EPR implementation –  monitoring an overview of the life cycle of the products ensuring EPR

5.     Improved Access to Markets – ability to interconnect with other markets generating more sales 

6.     Improved Analytics – understanding the data behind the business and its influence on cost and revenue which improves the decision-making process.

7.     Revenue Growth – generating more business opportunity through lead imporved access to market and exposure to recyclables transactions 

8.     Reduction in operational cost – reducing the cost associated with the analog work  

9.     Increased agility and innovation – having the flexibility of working in a changing environment builds opportunities for innovation

10.   Environmental Performance – An understanding of the environmental parameters and an improvement in the environmental performance

 

What’s next?

 

It seems intuitive to invest and research blockchain in waste management as it touches the life of almost every player, starting with the regulators, the waste management bodies, the private sector, the consumers, the citizens and ending with the industries contributing to the generation of waste. Therefore, the waste industry could benefit immensely from a successful implementation of blockchain technology; the real question remains who would initially step in and support the research phase?

 

 

 [SK1]Now we have the 7 Rs.