Asset Up circular economy innovation creates value
Asset Up circular economy innovation creates value
30/03/2020 – Innovation
Listening to our clients can result in profitable new products and services. That’s certainly the case for Asset Up, a solution designed to give a second life to clients’ sleeping stock – and generate revenue for both our clients and Vallourec.
“The idea for Asset Up came as a direct result of client requests received via the Smartengo Marketplace”, explains Thomas Bordenave, Business Owner in the Smartengo team, in which are developed all the advanced and innovative digital solutions offered by Vallourec.smart, and the brains behind the new service.
“Operators and distributors were keen to know what solution Vallourec could offer for the resale of tubes at the end of project life. Our response was Asset Up, a solution that combines Vallourec’s technical expertise and the commercial reach of our digital Marketplace to evaluate clients’ assets and put sellers in touch with potential buyers.”
By creating a trustworthy market for the resale and re-use of end-of-life tubes, the solution also positions Vallourec as a partner in the circular economy.
Reliable inspections underpinning resale value
Vallourec’s strong reputation is the result of the quality of its tubular solutions and its technical expertise. Asset Up leverages that expertise to offer a reliable inspection program for clients’ sleeping stock.
Our experts apply a range of inspection techniques, from visual inspection to advanced non-destructive testing (NDT), to evaluate the condition of a client’s tube stocks. As a result of the inspection, the client is given a recommendation based on the international standards testing protocols: which tubes can be reused or resold; which require modification prior to resale; and which need to be scrapped. They can then rely on Vallourec’s support for the next steps of revalorization, such as reselling on the Smartengo Marketplace.
“Sleeping stock is a major cost for clients, so the ability to generate value from tubes they no longer need is very attractive”, explains Thomas.
“Asset Up brings much-needed confidence to the re-sale market. Buyers trust Vallourec’s expertise, and can rely on the quality of their purchases”.
This removes a market distortion, whereby buyers offer lower prices to offset the risk of buying tubes which may turn out to be defective. As a result, sellers tend to obtain prices that reflect the true condition of their tubes. And for tubes that are defective, Vallourec is able to put clients in touch with scrap recyclers.
Vallourec can also provide a valuable market intelligence service by informing clients of the availability of buyers before conducting inspections.
The service has already generated revenue for Vallourec, and has the potential to grow significantly. Clients pay for the inspection, followed by a percentage-based commission if they sell the re-qualified tubes via the Smartengo Marketplace. A win-win model for Vallourec, its clients, and the environment!
The latest in a series of new services, brought to you by Vallourec Innovation
Created under the Vallourec internal innovation program, the new Asset Up service beat over 180 other entries to scoop the top prize. The Executive Committee, peer jury and employees were all seduced by the innovation’s relevance to clients, its digital aspect and its ability to help Vallourec achieve its circular economy ambitions.
Such service is a natural extension to Vallourec’s core offer, believes Thomas.
“Vallourec has historically been known for its ability to innovate on products such as VAM®. Today, clients are encouraging us to go beyond this technical expertise to help them achieve higher performance. We’re developing digital solutions, additive manufacturing… the possibilities are endless!”
