Chemical Leasing Toolkit

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Task 10: Monitor, document and evaluate results

The Chemical Leasing business model is intended to generate a sustainable business and to support long-term working relationships between  the partners. It is therefore important to consider modifications and corrections if the business develops differently to expectations. It is also important to be flexible enough to adapt business activities continuously based on results.

Task 10 aims to manage this process, facilitating corrections and further optimizing chemical use in the company’s production process.

Monitoring

Monitoring is in principle a continuous process that needs to be performed once a Chemical Leasing contract is established. It provides both partners with data on:

  • The consumption of chemicals
  • The quality of the chemicals (e.g. whether in line with the specification)
  • Process parameters
  • The quality of process outputs (e.g. the cleanness of metal parts or the efficiency of the lubrication process)
  • Data on maintenance (if needed)
  • Other

Table 4 on baseline data collection can be extended and adapted for the recording of monitoring data (e.g. some companies might need to add process parameters such as temperature and pressure).

Monitoring activities should be agreed between the partners and the results should be shared in a transparent way in order to maintain trust and facilitate joint decisions on modifications.

Verification of the number of units to be paid

The supplier should be able to confirm whether the producer’s report on the number of units to be paid  corresponds to the real situation, e.g. if the company pays per cleaned pieces, the number of pieces cleaned should be verified.

Documentation

Monitoring results must be well documented and communicated between the partners as they might form the basis for later contract modifications.

Evaluation

The evaluation should compare the baseline data (before implementation of the Chemical Leasing model) with current data to assess real achievements. The evaluation should answer the questions:

  • What are the real savings achieved?
  • Have the targets been met?
  • Is there a need to modify the contract?

The result of the evaluation can be:

  • A definition of real achievements and a clear idea of where the company stands
  • A decision to continue optimizing the process(s) targeted in the Chemical Leasing contract because the evaluation results stimulate new ideas that are in the interest of both partners
  • An adjustment of the price per unit of payment, e.g. because consumption of chemicals has changed due to the change in process parameters.

An evaluation schedule must be agreed between the contractual partners. A three- to twelve-month evaluation period is recommended. (Shorter periods require excessive effort and the results might not be stable. Longer periods might cause corrections to come too late.)

Presenting results

The company might want to present its achievements after a certain period of applying a Chemical Leasing model: this could be useful, for example, for the company’s annual report; for speeches and meetings with stakeholders; for ISO 9001, 14001, EMAS and CSR reports; for corporate news, leaflets and presentations; and for meetings with the supplier to discuss contract extension. 

The results can be presented in different formats, e.g. in a “before and after” comparative table and photograph (see Figure 5) or in a short summary of the results achieved, as shown in Table 5.

Picture 5. The same packaging line before and after implementation of Chemical Leasing for conveyor lubrication

 

Table 5. Sample summary table of results

Economic figures Environmental improvements Safety  and health improvements
Savings planned and achieved Change in product output Return on investments/
Payback period
Change in pollution intensity: Reduction in:
Consumption of chemicals
Hazardousness of chemicals
Water consumption
Waste water generation
Energy consumption
Waste generation  

Reduction in accidents related to the handling of chemicals

Reduction in adverse health effects in workers due to exposure to chemicals

Intangible benefits
(For example, The company can better control and predict the costs related to the target process.)
   

Extending the Chemical Leasing model

Very often partners start by implementing the Chemical Leasing model in one particular line or area. With time, if the cooperation between the partners is positive and the user’s expectations are met regarding the costs, the results, and the quality of the products and services, the user can decide to extend the model to other production lines and areas.

 

  • Having finished Task 10 you are aware of results achieved and have developed a basis for continuous improvement.