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.
Circular Supply Chains Help Reduce Waste
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.
How do Circular Supply Chains Work?
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.
That’s why a method of supply chain circularity that is even more effective than simply making your products recyclable is gaining popularity. Many businesses are starting to directly reclaim and collect used products from their customers, often in the form of bottles, containers, or clothing.
This way, these products can be immediately repurposed and reused without the risk of these materials never being recycled. It also results in a quicker turnaround and business flow as you needn’t remake an entire product from scratch.
How Orridge Can Help with Circular Supply Chain Management
Circular supply chains are an excellent idea and can bring several benefits to a business, including an increase in brand trust among customers, boosting confidence in your shareholders, and reducing operational costs.
However, they can be difficult to set up correctly from the beginning, and often require a lot of fine-tuning to get right. This is because measuring and monitoring products through the circular process can be complicated and is often mishandled, with incorrect stock counts and the loss or misplacement of returned products the key culprits.
Plus, the reuse of previously bought materials may have compliance and regulatory concerns that need to be heeded and managed effectively before you can start production.
By utilising Orridge Supply Chain Services, an expert within the industry, you can ensure the smooth set-up and operation of your circular supply chain. Deploying an independent and specialist stock audit company to handle the recycled customer returns will ensure that your inventory is managed effectively, and we can also help navigate any regulatory compliance.
This means you’ll never lose or mishandle your recycled stock and will constantly have access to it on the production line. You’ll also be able to get a clearer view of your stock from an operational perspective, allowing you to adapt your processes on a wider scale to help meet demand.
Contact Orridge to Set Up Your Circular Supply Chain
Looking to benefit from our range of stocktaking and supply chain solutions or thinking of setting up your own circular supply chain processes? Reach out to our expert team of stocktakers and auditors to find out how you can get started!
Call our office on 01279 775 600 or email sales@orridge.co.uk to ask your burning questions and our team will get back to you as soon as possible!