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Circular Economy and Supply Chain
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Definition of Circular Economy
A circular economy is an economic model focused on designing out waste and pollution, keeping products and materials in use, and regenerating natural systems.
Product Life Extension
In supply chains, this involves repairing, upgrading, or re-manufacturing products to extend their usability and reduce waste.
Design for Disassembly
Products are designed so that they can be easily taken apart at end of life, allowing components to be reused or recycled.
Material Recovery
Supply chains focus on recovering materials from used products for recycling and reuse in new products.
Resource Efficiency
Improving resource efficiency in supply chains reduces the use of raw materials and energy consumption, thereby decreasing environmental impact.
Bio-based Materials
Supply chains incorporate bio-based materials which are biodegradable and can be safely reintegrated into the environment after use.
Reverse Logistics
Supply chains are designed to facilitate the return of products from end users back to producers for reprocessing or recycling.
Product-as-a-Service
Instead of selling products, companies lease them to consumers, ensuring the return of products for maintenance, re-use, or recycling.
Industrial Symbiosis
Companies in a supply chain collaborate to use by-products or waste from one process as raw materials for another, creating an interlinked system.
Modular Design
Products are designed in modular ways that allow easy replacement or upgrading of parts, extending the product's lifespan and reducing waste.
Eco-efficiency in Supply Chain Operations
Optimizing transportation, production, and distribution to minimize energy use and waste production while maximizing resource productivity.
Renewable Energy Integration
Supply chains adopt renewable energy sources, such as solar or wind power, to reduce carbon emissions and reliance on fossil fuels.
Local Production and Consumption
Sourcing and producing goods locally to reduce transportation emissions and support local economies.
Zero-waste Strategy
Implementing strategies in supply chain processes to ensure no waste is produced that cannot be reused, recycled, or composted.
Remanufacturing
Used products are dismantled and restored to like-new condition, allowing them to re-enter the supply chain and reduce the need for new resources.
Performance Tracking
Using data analytics to monitor and improve resource efficiency and sustainability performance in supply chain operations.
Closed-loop Supply Chain
A supply chain that is fully circular, where materials flow in a closed-loop system, minimizing waste and maximizing reuse and recycling.
Sustainable Packaging
Developing packaging solutions that are recyclable, reusable, or compostable to reduce the environmental impact of packaging in the supply chain.
Collaborative Consumption
Supply chain models that facilitate product sharing or pooling to reduce overproduction and overconsumption.
Dematerialization
Reducing the total material and energy throughput in supply chains by delivering the same level of functionality with less material.
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