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Harnessing technology for a circular economy: DY/DX innovates to transform packageless retail

Nevo Hadas, partner at DY/DX, a digital transformation consultancy and CEO of Smartfill.
Smartfill Nude Foods
Smartfill Nude Foods

Today's economic challenges and the devastating impact of climate change demand an urgent, innovative approach to sustainability. ​ In developing economies, where economic livelihoods and food security are pressing issues, the circular economy offers a promising model for building resilience with the potential to improve living conditions while fostering environmental sustainability. ​ Our next frontier of innovation lies in creating circular economies - enabling and rethinking business models to design out waste and pollution in every aspect of the production process. ​ Now, a smart solution for packageless retail called Smartfill, developed and tested in South Africa, is rolling out in other developing and developed markets globally.

As a digital transformation consultancy, DY/DX applies design thinking to creating tools for more circular models for business. ​ We firmly believe that new business models have the potential to drive circularity and increase opportunity, tackling global issues by transforming how we design, produce, and consume goods in a way that focuses on reuse and value preservation. ​ Businesses need to commit to innovation in their product design, business models and processes to unlock the opportunity presented by a circular economy.

One of our key projects is to reduce plastic packaging in FMCG, effectively disrupting this trillion dollar a year packaging industry. Driven by the urgent need to create more sustainable retail practices and solve challenges around the widespread adoption of packageless retail, DY/DX partnered with retail solutions provider Smollan to create Smartfill, an IoT-enabled packageless dispenser solution for retail refill that eliminates waste. ​ Smartfill's smart technology dispenses exactly what customers require, while tracking usage, facilitating efficient stock management and reducing overproduction.

Smartfill in Spar, South Africa
Smartfill in Spar, South Africa
Smartfill in Spaza store
Smartfill in Spaza store

Now evolved to a separate start-up with grant funding from UK Research and Innovation (UKRI), Smartfill is poised to disrupt and transform retail shelf models by enabling packageless sales, significantly cutting down on single-use plastics, driving product affordability in developing nations and aligning with the growing demand for sustainable shopping experiences. ​

Smartfill’s journey is marked by significant achievements, including selection into the Climate Fintech Accelerator programme, participation in key programmes like Microsoft for Startups, and winning the UK regional leg of the Start-Up World Cup. Also in October, Smartfill was selected as a finalist in the Blue Earth BE100, Europe’s leading pitch competition for planet positive business. These milestones validate Smartfill’s innovative approach and strategically position the start-up for further funding and growth.

Marc Wetselaar of Smartfill receives the Startup World Cup regional winner trophy in London
Marc Wetselaar of Smartfill receives the Startup World Cup regional winner trophy in London

Smartfill has conducted multiple retail trials in various locations, partnering with major retailers to test its technology in real-world settings. These trials have demonstrated the feasibility and benefits of packageless retail, building the business case and gathering valuable data for further improvements. Gross margins for retailers increased by an impressive 17% to 32%, depending on the product, demonstrating that the unpackaged approach can be economically viable for both consumers and retailers. A pilot tripled the sales of product under 1kg in a month and outperformed 3m of shelf space in just 30cm.

Rolling out in global projects with Transform, Unilever and Bopinc, Smartfill dispensers are now dispensing shampoos in Bangladesh and sunlight powder in Kenya. The most important aspect of these projects is creating a high margin business case that can increase margins by using circularity and avoiding single use packaging.

Smartfill dispenses Sunlight washing powder in Kenya
Smartfill dispenses Sunlight washing powder in Kenya
Smartfill Liquid Dispensers in Bangladesh
Smartfill Liquid Dispensers in Bangladesh

The kind of innovation embedded in Smartfill is crucial for the wider adoption and success of the circular economy, highlighting the potential that lies in combining digital innovation with sustainability. While it is currently an early-adopter model, with more examples of successful implementation, it can certainly challenge current wasteful packaging models.

By leveraging digital technologies, we have the potential to innovate for circularity, creating sustainable alternatives to the linear take-make-waste model that depletes our natural resources, generating pollution and waste at an alarming rate. ​ True circularity goes far beyond recycling; it’s about finding new revenue models and opportunities within a supply chain that reduce waste and optimise resources.

While the transition to a circular economy requires a significant shift in mindset for businesses, it could have significant benefits for the wider economy. Embracing circular economy principles should bring about innovative solutions to global challenges, promote sustainable practices and create a more equitable and prosperous society. It's time for businesses to step up and lead the way towards a circular future.

28 Jun 2024 15:12

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