Circular Supply Chain

 Hello everyone,

I am Sreelakshmi V, second year MBA student from Amrita School of Business.In this blog I would like to share some insights about circular supply chain with you all.

The traditionally used linear supply chain is where raw material is collected is converted into a product and thrown away after its usage.This will lead to wastage accumulation as the products are for one time use and the more times we need it, more the waste disposed.It will have a bad impact in the environment and also all the investment and efforts taken for making the product (like labor,energy and money) are wasted.

The solution for the problem caused by the linear supply chain is to adopt circular supply chain.Circular supply chain can be explain by a quote "One man's trash is another man's treasure".Here in circular supply chain,the waste is converted into the raw material, i.e. ,after using a product it is not thrown away, instead it is converted into raw material by either using its parts or melting it into the raw material.

 Here, we can see that the life cycle of a product will be : raw materials converted into products, products are distributed and reached to the consumers,consumers will use it and instead of throwing it away they return it back to the manufacturer,waste is converted into raw material and the same steps repeat.

Using circular supply chain will reduce the cost incurred for purchasing the raw materials.So this will benefit  the manufacturer as they will get more profit with less cost and also it will benefit the environment as it will reduce the waste disposal.