invest in enterprises that have employed a circular economystrategy. Holdings include some of the world’s largest organizations, such as Nike, Microsoft and L’Oréal.
Google, yet another Ellen MacArthur Foundation partner,recently joined the Circular Electronics Partnership (CEP)to help end e-waste. CEP is exploring reverse logistics, recycling and other areas to build a circular economy. Other members include Dell Technologies, Cisco, Vodafone,KPMG and Accenture.
These brands are not alone. According to a report by Gartner,70% of supply chain leaders plan to invest in the circular economy. They are also interested in how digital technology can assistwith delivery (46%), customer engagement (45%), manufacturing and remanufacturing (43%), and planning (43%).
BUILD A MORE AGILE AND RESILIENT
The circular economy continues to grow in popularity, andas more businesses recognize its potential to build stronger,more agile and resilient supply chains, they will follow suitwith their own circular economy models. These businesses willbecome more sustainable by using items that would normallybe discarded by consumers at the end of their lifespan. They’llsave money by putting these materials to use—either throughreuse or by creating something new. The end result means therewill be more agile, resilient and cost-effective businesses andsupply chains, creating a better world for all of us.
However, the circular economy cannot be achieved withgood intentions alone. To implement their own model, they’llneed to build on the visibility, transparency and intelligent useof data they already have in place, including data from a variety of sources. Those insights will prove to be invaluable inplanning a new, circular network. They’ll have to work closerwith partners and suppliers alike and ensure that every supplychain participant supports the model chosen to achieve thebest, most agile and resilient results. MHL
Adam Bimson is director and co-founder of Vuealta (www.vuelta.com), a provider of scenario planning and forecasting solutions for supply chain, finance and operations.
tively rent a product before returning it to the source. As a result of this effort, businesses must then be ready for the manyend-of-life returns they’ll receive when the product no longerserves its core function. They’ll be tasked with moving thoseitems back into the supply chain for reprocessing, which islikely something they’ve never done before—but many arecatching on, and others are sure to follow suit.
Burger King, for example, will soon offer optional reusable packaging that allows consumers to pay a deposit at thetime of purchase and receive a refund when the package isreturned. IKEA is buying back furniture to ensure it doesn’tgo to waste, and Adidas will happily recycle old pairs of theUltraBOOST DNA LOOP running shoes.
BRANDS AND SUPPLY CHAINS ARE
COMING ON BOARD
Fashion brands like Patagonia have been especially excitedby what the circular economy entails. The company has adopted a framework for extending the life of garments by sharingits message to only buy clothes that are needed, repair whendamage occurs and reuse when possible. When all else fails,Patagonia will upcycle its clothes into new products, mechanically recycle them into materials for industrial applications,or chemically recycle the garments in a closed-loop process.
Tommy Hilfiger has introduced a circular economy strategy as well. The company recently revealed its first JeansRedesign garments, which were designed to be more durable and recyclable. Working in partnership with the EllenMacArthur Foundation, whose mission is to accelerate thetransition to a circular economy by developing and promoting sustainable concepts, Tommy Hilfiger’s Jeans Redesign ispart of the Forward Fashion initiative. Launched by TommyHilfiger parent company PVH Corp., Forward Fashion aimsto transform how clothes are made, used and reused, reducingnegative impacts to zero while increasing positive impacts100%. Forward Fashion’s goal is to improve the lives of morethan one million people across its entire value chain.
The Ellen MacArthur Foundation has also partnered withPhilips, H&M, SC Johnson, Unilever and numerous others.BlackRock, a multinational investment management corporation, became a partner as well after setting up a fund to
PATENTED REWIND SYSTEM
Increase worksitesafety & efficiency.
Requires no externalpower source.
Wide array of reelmodels & options.
Eliminate dangerouswhipping hazards.
HOSE, CORD, & CABLEPRO GRADE REELSDURABLE. RELIABLE.
SAFEST REELSIN THE INDUSTRY.
2009NED_Coxreels.indd 1 8/24/20 10:34AMby consumers. In a circular economy, the products themselves are designed, manufactured and reused in a moresustainable manner.
FIND NEW PURPOSE WITH OLD PRODUCTS
The circular economy requires a change in the traditional use-and-discard line of thinking. Businesses are now considering howthe products they manufacture—once designed for a single purpose, only to be discarded later on—can be used to create something new at the end of their lifespan. New versions of the sameitem may be developed, or the old product could be transformedinto something entirely new. Both solutions eliminate waste, improve efficiency and reduce the need for more supplies.
This requires the use of new systems, which must be putinto place in order to track product components not only today but over the course of months and years. There is also theneed for new forecasting and demand approaches, along withan updated transaction model that allows consumers to effec
ELNUR | DREAMS TIME