Circular Supply Chain – path to sustainability

Hello, readers! I'm Mathews currently pursuing 2nd year MBA at Amrita School of Business, Coimbatore.   Here's my new blog post! 

        The increasing demand for products are forcing businesses to expand the production and capacity in order to meet the rise in demand. But how could businesses increase capacity in a static world where resources are limited? Businesses nowadays realizes that the only solution to this particular problem is to work on sustainability and circular SC is the path to a sustainable SC.

         A circular SC is the model in which traditional linear SC (in which products are made, used and thrown away) is replaced with a more holistic supply chain where products are reused, restored and regenerated. The objective is to attain zero wastage. Uber is a classic example for circular economic model where a family no longer require a costly vehicle for their limited travel requirements.

 

Need for a circular economy 

A circular SC can be made possible only through the implementation of a circular economy where wastage is reduced and output is increased through recycling process, thus minimizing the carbon footprint. It involves mainly 3 steps: Recycle, Re-manufacture, Reuse/Resell

 

Ways to attain a circular SC:

Technology - the key enabler

Adapting to new technologies such as 3D printing, big data, IOT etc. could help to accelerate the process by reducing wastage of time and money involved. 

Green procurement

Sustainable procurement methods such as relying on biologically regenerative or raw materials could help us to manage during SC disruptions.

Cleaner production

Green manufacturing in which resources and energy are used efficiently along with the minimization of wastage could help to achieve better material efficiency by reducing industrial waste generated.

Green logistics

Focusing on sustainable reverse logistics methods can give considerable positive changes towards sustainable SC. Reverse logistics is the management of moving goods from their final destination, back to the distributor or manufacturer for rework, replacement, or disposal. 

 

        Adaptation of sustainable SC is the only way to drive business sustainability and investing in greener channels could be the new competitive advantage in future.