Sandvik Coromant Recycling Concept

Abstract

Lars Hallberg is preparing for a meeting with the executive management of Sandvik Tooling, a world leader in metal cutting tools. The purpose of the meeting is to review the Coromant Recycling Concept (CRC), a global recycling program for Coromant, the leading brand of Sandvik Tooling. The case is an opportunity to evaluate a global recycling program, including its value to the company from business and environmental perspective, the match between the reverse and forward supply chain as well as decisions regarding keeping recycling in house or outsourcing it.

Excerpt

UVA-OM-1407

Rev. Nov. 21, 2011

SANDVIK COROMANT RECYCLING CONCEPT

It was August 2009, and Lars Hallberg was in his office in Sandviken, Sweden, preparing for a meeting the following week with the executive management of Sandvik Tooling. The purpose of the meeting was to review the Coromant Recycling Concept (CRC), a global recycling program for Coromant, the leading brand of Sandvik Tooling, a world leader in metal cutting tools with sales of (U.S. dollars) USD3.8 billion in 2008. Sandvik Tooling was one of the three business areas of Sandvik Group, the global high-technology engineering firm.

The CRC had been launched in 1996, but it was only recently that it had really gained momentum within the firm and quite a few challenges remained. Hallberg wanted the comprehensive plan he was preparing for the CRC to demonstrate its value for Sandvik.

Industry Overview

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Keywords: Supply Chain Management, Reverse Logistics, Recycling, Sustainability, Outsourcing