Could Your Business Benefit from a Circular Supply Chain?

Circular supply chains are a modern innovation in the logistics industry brought about by the necessity of focusing on sustainable and environmentally responsible initiatives.

In simple terms, a circular supply chain is one that prioritises recyclability and, in many cases, leads to the reselling of company products that have already been used. It also ensures the reusing of raw materials for new or differing product lines.

But how do they work, why are they important, and how can Orridge support your supply chain circularity? Read on to find out.

The primary aim of a circular supply chain is to reduce waste throughout business operations with the aim of creating a continuous loop, leading to little or no wastage. Many companies choose to implement supply chain circularity to achieve sustainable or Net-Zero targets.

Circular supply chains are an efficient and effective way of reducing waste and can form the backbone of a business ESG plan. Often overlooked is the fact that they can also help to reduce operational costs since you don’t need to pay for as many brand-new materials.

A circular approach in this way can help companies reduce their environmental footprint, which is a positive for consumers and shareholders alike, while also allowing them to allocate and use expensive resources in a more efficient way.

With a circular supply chain, your business may choose to both make a product from fully recycled materials and ensure that it is fully recyclable at the end of its lifespan. This prevents your company’s products from ending up in landfill and contributing to the global waste problem.

The final aim of this system is to end up operating an entirely renewable operation whereby you are recycling and producing in equal measure. This also means that you are using as few new resources as possible, preventing the addition of more plastic into the production line, or further consumption of natural resource.

However, one issue with this idea is that your customers may not recycle your products at home, or they may be contaminated by food waste or other products that shouldn’t be recycled.