Looped Value Chain

The “Looped Value Chain” © Approach

Genesis

Quality is not only determined by safety, utility and consumer appeal; the ultimate quality standard involves being attuned to the environment. Green technologies, environmental sensitivity and low carbon footprints are the vanguard determinants of success in the era of Climate Change. All the major United Kingdom Food Distributors tout their reduced carbon footprints as evidenced by the shift from transportation by trucks/lorries to transportation by train. Trains are more energy efficient for haulage than individual trucks.  The premium being placed on hotel culinary offerings that do not incur significant “food miles”, and the minimalist packaging of manufactured goods all point to increased carbon sensitivity.

Description

Value chain looping:  The traditional value chain is a sequence of steps involved in the process of production to market delivery of the product. It provides a means of understanding relationships between businesses, methods for increasing efficiency, and ways to enable businesses to increase productivity and add value. Value-chains were seen as vehicles for linking producers/manufacturers to markets.  Whereas traditional value chains begin with inputs and end at product purchase, the “looped value chain” includes utilization, waste management and nutrient/constituent recycling.  In other words a looped value chain is concerned with the steps involved in the manufacture/production of the good, its utilization by the consumer, the utilization or handling of the packaging material and whatever is left by the consumer and its eventual reuse and recycling.  

Progressive manufacturers provide disposal protocols for their products, packaging and waste (now seen as byproducts).  Value can be added or extricated from any stage in the product cycle as opposed to the traditional open-ended chain. Value addition is but one way to enhance incomes. Adding value is the process of capturing or creating value in a product to garner a greater portion of the revenue from that product at final sale. Looped Value Chains provide revenue-generating opportunities at all stages in a continuous business process

Utility

The “Looped Value Chain” approach has been employed in several sectors across CARICOM.  The Agribusiness Cluster, VINCYKLUS, in St Vincent and the Grenadines was conceptualized with a looped value chain in mind.   Nutrient and input recycling is factored in to the operations of individual firms in the cluster, as well as part of the overall operations of the Clustered entity.  Membership in the Cluster includes input suppliers and companies involved with recycling organic byproducts.

In Guyana, The Tri-Lakes Tourism product incorporates the use of agro-ecological zones, recycled/reused inputs such as lumber, organic nutrients and energy storage devices. Their value chain is decidedly looped and based on a self-sustaining model of product revitalizing, whether the product is an exhibit, a food item, an adventure or a piece of handicraft.