Lorenz Meters – Smart Water Meters in Circulation

All devices can be recycled by cleaning and recalibrating while about 90% of the materials can be reused

LORENZ GmbH & Co. KG

Outline

 

Initial Situation

     â€¢    Water meters must be replaced regularly (calibration legislation)

     â€¢    Many components are still fully functional after removal

     â€¢    The market was characterised by fluctuations in raw material prices, cheap products and production relocations abroad

Solution Approach

     â€¢    Introduction of a circular economy: return and remanufacturing of water meters

     â€¢    Focus on quality, durability and performance instead of price competition

     â€¢    Transformation from analogue-linear to digital-circular

Results/Impact

     â€¢    Millions of water meters are now in the circular system

     â€¢    Material savings and cost reduction through reuse

     â€¢    Resilience: independence from the raw materials market, especially in the event of supply bottlenecks

     â€¢    Creation of jobs at the Schelklingen-Ingstetten site

     â€¢    Strengthening of market position through sustainable and future-proof solutions

     â€¢    Positive response from customers, who also benefit from the ecological and economic advantages

 

LORENZ GmbH & Co. KG, a medium-sized company from Baden-Württemberg with around 350 employees, shows how the principles of the circular economy can be successfully implemented in industry. As a manufacturer of water meters, LORENZ has established an innovative take-back and recycling system that combines ecological responsibility with economic success. The company's vision is to view water meters not only as consumable products, but as durable, reusable components in a closed-loop system.

 

Idea / Starting Point

 

 

Lorenz GmbH & Co. KG developed its circular economy model out of economic necessity. In the 2000s, the market for water meters was highly competitive: competitors were increasingly turning to cheaper materials such as plastic and relocating their production abroad. Lorenz, on the other hand, wanted to continue offering high-quality brass products ‘Made in Germany’ and maintain its location in Schelklingen-Ingstetten.

Water meters are subject to statutory calibration periods and must be replaced at regular intervals of six years – even though many components are still fully functional. LORENZ took advantage of this and developed the idea of taking back the removed meters, refurbishing them and putting them back into circulation.

In 2009, Lorenz established a voluntary take-back system for water meters in cooperation with local authorities and metering point operators.

The circular economy became the strategic response to price pressure and the basis for sustainable growth.

 

Implementation

Lorenz made a conscious decision to avoid short-term price competition and instead pursue a long-term circular economy strategy.

   

 

Instead of disposing of used devices, they are taken back, tested, reconditioned and put back into circulation. The company focuses on:

     â€¢ Durable, high-quality materials

     â€¢ Product design: Product development and design based on the principle of ‘design for circularity’ – modular, durable,                        remanufacturable and with batteries for two calibration periods.

     â€¢ Take-back logistics: Provision of free mesh boxes for technicians, collection by Lorenz, sorting and recording of returned                devices.

     â€¢ Remanufacturing process: Testing, cleaning, dismantling, replacement of defective components and reuse of functional                  parts.

     â€¢ Business models: Sales, deposit, rental, leasing and ‘product-as-a-service’ models that ensure the return of products.

     â€¢ Digital processes for tracking and quality assurance

     â€¢ Research & cooperation: Collaboration with TUM, KIT and Circular Republic to further develop circular processes and                       automated disassembly.

 

Impact

     â€¢    Resource conservation: Significant savings in raw materials and energy through reuse.

     â€¢    Cost reduction: Lower production costs.

     â€¢    Strengthening of market position: Positioning as a sustainable innovation leader in the field of smart metering.

     â€¢    Customer satisfaction: Municipalities and utilities benefit from durable products and a sustainable service concept.

     â€¢    Contribution to the circular economy: Setting an example for other industrial companies through active circular economy                practices.

 

Advantages 

-    Economical:

     â€¢    Cost savings through reuse of brass and other components

     â€¢    Independence from the raw materials market, especially in the event of supply bottlenecks (e.g. coronavirus, Suez Canal)

     â€¢    Predictable returns thanks to statutory calibration periods

     â€¢    Competitive advantage through high-quality, durable products

     â€¢    Positioning as a sustainable innovation leader in the field of smart metering

 

- Ecological:

     â€¢    Conservation of resources

     â€¢    Reduction of COâ‚‚ emissions and energy consumption

     â€¢    Minimisation of waste through reuse

 

- Social & societal:

     â€¢    Creation of jobs through local recycling

     â€¢    Strengthening of Schelklingen as a location through investment in infrastructure and renewable energies

     â€¢    Improved image among customers and employees through sustainable business practices

     â€¢    Role model for other industrial companies through active circular economy practices

 

-   Customer-related:

     â€¢    Credits for returns (return remuneration)

     â€¢    Relief in disposal and logistics

     â€¢    Increasing acceptance of rental and PaaS models

 

Links:

·        https://circularhubs.de/lorenz-meters-wasserzaehler-im-kreislauf-3/

·        https://www.youtube.com/watch?v=NT7upWTAxng