#Japan #Tokyo #Tricycle #FG-L Circular Network #ReSACO

Tricycle and FG-L Circular Network Launch ReSACO

Tricycle Inc., headquartered in Shinagawa, Tokyo, under the leadership of CEO Koichi Yamada, and FG-L Circular Network, part of the Fujiyu Lease Group led by CEO Akihiko Oki, have successfully completed a pilot project that commenced in June. Their collaboration focuses on the circular economy by facilitating reuse among companies. This initiative uses the platform called "ReSACO," designed to match companies with surplus assets with those in need of them.

The objective of the pilot was to maximize product lifespans by leveraging digital transformation (DX) to encourage the reuse of unnecessary assets owned by enterprises. Following this successful experiment, which aimed to boost corporate reuse, the two companies are excited to announce the official launch of ReSACO operations starting November 1.

Through ReSACO, both companies will create a framework that enables the repurposing of unused equipment and assets owned by corporations, thereby promoting efficient resource utilization and cost reductions.

During the pilot, the focus was on a variety of surplus leasing assets, including an abundance of unwanted golf carts, golf course maintenance equipment, and agricultural machinery, amounting to approximately 130 items.

In traditional practices, FG-L would face obstacles such as storage limitations, sales processes, and the duration of inventory handling when dealing with bulk equipment. Consequently, these challenges often led to selling surplus items at values suggested by second-hand dealers or opting for disposal. However, by using ReSACO, they aimed to sell these second-hand assets directly to end-users needing them, thus striving for market price transactions.

Remarkably, the pilot yielded a 60% success rate in property sales, with over 99% of the transactions being direct sales to end-user companies such as golf course operators and agricultural organizations. The number of purchases made by second-hand dealers was negligible.

By engaging end-users directly through ReSACO for sales at market prices, the companies successfully achieved their initial objectives. They also confirmed that the operational convenience of ReSACO effectively contributed to increasing rates of reuse, which ultimately led to waste reduction. Furthermore, direct sales to end-users simplified logistics and contributed to lower greenhouse gas emissions (GHG).

Moving forward, Tricycle intends to enhance the platform with additional services and functions based on the results of the pilot project, promoting ReSACO as a logistics method for various reused items. On the other hand, FG-L Circular Network aims to expand options for utilizing leasing assets through ReSACO, striving to support more companies in effectively managing their unused assets and contributing to a sustainable society.

About ReSACO: A Platform for Reuse Matching Among Corporations

Unlike individual-to-individual reuse, corporate reuse encounters multiple challenges, including accounting issues, the volume of items, transportation, and storage constraints. Many valuable assets that companies no longer need end up either being disposed of as industrial waste or sold at low prices. ReSACO addresses these unique corporate challenges by advocating for reuse as the preferred option, enabling companies to maximize the residual value of their unwanted goods.

Through initiatives like ReSACO, businesses can work together to create a model that champions the circular economy and sustainable practices. This not only benefits individual enterprises but also has a broader positive impact on the environment.

Company Profiles

FG-L Circular Network Co., Ltd.

• - Location: 5-1-1 Kojimachi, Chiyoda-ku, Tokyo 102-0083, Japan
• - Established: April 1996
• - Capital: ¥10 million
• - CEO: Akihiko Oki
• - Business Activities: Sales, installment sales, and import/export activities of industrial machinery, tools, precision equipment, optical devices, office machinery, and computers.

Tricycle Inc.

• - Location: 6-26-3, Minamioi, Shinagawa-ku, Tokyo 140-0013, Japan
• - Established: May 2018
• - Capital: ¥10 million
• - CEO: Koichi Yamada
• - Business Activities: Operating the ReSACO platform for optimal disposal of unwanted items, digitizing waste contracts (EcoDraft), and selling second-hand and recycled products.