Sphera > Case Studies > From Linear Manufacturer to Circular Supplier: Business Case for Circular Economy at Lorenz Meters

From Linear Manufacturer to Circular Supplier: Business Case for Circular Economy at Lorenz Meters

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Company Size
200-1,000
Region
  • Europe
Country
  • Germany
Product
  • Lorenz water meters
Tech Stack
  • Life Cycle Assessment (LCA)
  • Life Cycle Costing (LCC)
Implementation Scale
  • Enterprise-wide Deployment
Impact Metrics
  • Cost Savings
  • Environmental Impact Reduction
Applicable Industries
  • Utilities
Applicable Functions
  • Product Research & Development
  • Quality Assurance
Use Cases
  • Energy Management System
  • Infrastructure Inspection
Services
  • System Integration
  • Testing & Certification
About The Customer
Lorenz GmbH & Co. KG (Lorenz Meters) is a German, family-owned company that produces more than 1 million high-quality water meters annually. The company has over 50 years of experience in the industry and long-standing relationships with business partners. It has developed an innovative circular economy business model to sustainably offer customized products for metering services, water utilities, and industrial applications. Customers can purchase Lorenz water meters as new or as remanufactured products. The company has 200 employees worldwide and generates a revenue of €22 million.
The Challenge
Lorenz Meters, a German company that produces over 1 million high-quality water meters annually, has developed an innovative circular economy business model to sustainably offer customized products for metering services, water utilities, and industrial applications. However, the company faced several challenges. They needed fact-based proof of the environmental performance of their circular business model and quantification of the environmental impact over the entire product life cycle. They also required data-driven insights into Life Cycle Costing (LCC) and identification of improvement potential for the further development of the circular business model.
The Solution
To address these challenges, Lorenz Meters partnered with Sphera to better understand and quantify the environmental and economic performance of recycled and remanufactured water meters. Sphera performed comparative life cycle assessments (LCA) of new and remanufactured water meters. Lorenz Meters products were evaluated on their environmental impact, raw material criticality, and economic efficiency. The analyses were carried out in accordance with DIN EN ISO 14040/44 and VDI 4600, VDI 4800 sheet 1 and sheet 2. Using the evaluation matrix developed by Sphera, the suitability of the water meter for remanufacturing was investigated. Factors taken into consideration included product design, reverse logistics, business model and other aspects. In addition, a practical guide - the 6-Step Plan - for introducing or supporting a Circular Economy business model was developed and applied.
Operational Impact
  • Lorenz Meters can now demonstrate clear environmental and economic benefits of its business model based on the robust LCA and LCC results.
  • The quantitative information on environmental impacts over the entire lifecycle will help the company improve further and develop its circular product solutions.
  • Potential solutions to further develop circular business models were identified.
Quantitative Benefit
  • Over 90% lower carbon footprint of circular product solutions
  • 50% cost reduction, including staged payback to the user (return incentive)

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