VIEWING CIRCULAR SUPPLY CHAIN EXAMPLES IN BUSINESS

Viewing circular supply chain examples in business

Viewing circular supply chain examples in business

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The notion of things being circular has found its way into supply chains because of its numerous benefits.



As International Container Terminal Services South Africa and Hutchison Port Holdings Trust China will understand, revenue is the main motivation for organisations to partake in every activity. But, there are lots of ways for organisations to make a profit and these do not need to come at the expense of other values. Many companies are interested in the circular economy because of this very reason, with the supply chain at the heart of it. This tactic maximises manufacturing investment and causes reduced production costs as a result of the emphasis on reusing materials. Businesses additionally become less reliant on the more volatile raw commodities markets due to them reusing current materials. As well as there being cost benefits there is also a window of opportunity for earning revenue due to circular business practices attracting environmentally conscious clients.

There are many distinct yet interconnected trends within modern supply chains. As an example, sustainable supply chains and green supply chains may share lots of the same methods, such as making use of renewable energies, but remain distinct like how sustainable supply chains are a wider concept that also have a focus on social and governance issues. Both these supply chain styles may utilise another modern concept, which can be the circular supply chain. This is where products or their components are returned or prepared for repair, refurbishment, recycling, or reselling. Factoring this right into a supply chain decreases the necessity for new materials, which makes it more sustainable. Also, this creates less pollution during the extraction and production procedure, which makes the supply chain greener. The other name for this is a closed cycle supply chain, due to the reduced amount of new inputs. This contrasts it to a linear supply chain, which creates value from cheap mass manufacturing but creates more waste as a side effect.

There are numerous ways for circular supply chain methods to become factored into the business techniques of the business and no company has to implement all of them. Some of those methods may occur at the shipping stage, as DP World Russia is going to be well aware, through developing new delivery paths that factor in the phases that close the circle by bringing used materials back to the start. The transportation of such materials could be made simpler by encouraging customer returns, such as by establishing drop-off points and by including packaging with serial codes to pay for the price of returns. The packaging it self can be redesigned to make sure that it is really not unnecessarily large and that it is made from recyclable materials. The same strategy can be used when sourcing all materials, so that the ability to be reused is a high priority whenever choosing suppliers.

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