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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These supply chains allow materials to be constantly reused frequently.



There are lots of methods for circular supply chain methods to become factored in to the business practices of the company and no business has to implement them. Many of these methods might occur at the shipping phase, as DP World Russia will be well aware, through developing new delivery routes that factor in the stages that close the circle by bringing previously used materials back to the start. The transport of such materials is made simpler by encouraging customer returns, such as by establishing drop-off points and by including packaging with serial numbers to pay for the cost of returns. The packaging it self can also be redesigned to ensure it is not unnecessarily big and that it is created from recyclable materials. The same strategy may be used when sourcing all materials, so that the capacity to be reused is a high priority when selecting suppliers.

As International Container Terminal Services South Africa and Hutchison Port Holdings Trust China will know, revenue is the primary incentive for organisations to partake in any activity. But, there are many means for organisations to earn a profit and these do not need to come at the expense of other values. Many companies are enthusiastic about the circular economy for this exact reason, with the supply chain in the middle of it. This strategy maximises manufacturing investment and results in reduced production expenses due to the focus on reusing materials. Organisations also become less reliant on the more volatile raw materials markets as a result of them reusing current materials. As well as there being financial savings there's also a chance for earning revenue because of circular business practices attracting environmentally aware customers.

There are many distinct yet interconnected trends within modern supply chains. For instance, green supply chains and sustainable supply chains may share many of the same practices, such as utilising renewable energies, but stay distinct like how sustainable supply chains are a broader concept that also have an emphasis on social and governance issues. These two supply chain styles may utilise another modern concept, that will be the circular supply chain. This is where items or their components are returned or prepared for fixing, refurbishment, recycling, or reselling. Factoring this in to a supply chain reduces the need for new materials, which makes it more sustainable. Additionally, this produces less pollution throughout the extraction and production procedure, helping to make the supply chain greener. One other name for this is a closed cycle supply chain, as a result of the reduction of new inputs. This contrasts it with a linear supply chain, which creates value from cheap mass production but produces more waste as a side effect.

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