Do you already know about Circular Logistics?
A model that we have heard more strongly in recent years is the Circular Economy, which addresses a paradigm shift in how products are produced and used.
According to THE CIRCULARITY GAP REPORT 2022, only 8.5% of the more than 100 billion metric tons of material consumed worldwide are recycled in the economy each year.
To achieve tangible changes, logistics is added as a core part of the process and creates new processes that benefit the environment with Circular Logistics. Keep reading and delve deeper with us on this relevant topic.
What is Circular Logistics?
Circular Logistics is based on the fundamental principle of closing the life cycle of products, avoiding the creation of waste and maximizing the value of resources. Logistics commonly works in a linear manner, where products are extracted, manufactured, used and disposed of; On the other hand, Circular Logistics focuses on designing products taking into account their recyclability, reuse and repairability from the beginning.
To make Circular Logistics successful, everything from how products are designed to the way they are used must change. Circular Logistics involves rethinking and redesigning logistics and supply chain processes to close the life cycles of products and materials, so that resources are used more efficiently and sustainably.
According to Harvard Business Review, 52% of global companies have made supply chain resilience a priority:
Sustainable Design. This is where Circular Logistics begins, because from the moment the design of a product begins, it must be considered that it must be as sustainable as possible, easy to dismantle for repair or reuse.
Product recovery. This is crucial, and possibly the most complex to implement, as it requires efficient collection and recovery systems for products at the end of their useful life. This can be done with take-back programs and specialized collection points that will allow for effective disassembly and recycling.
Reuse and repair. Nowadays it is easier to purchase a new product than to repair it, so this point is where the industry and consumer must be made aware. We need a commitment from everyone to extend the useful life of products through repair. This reduces the need to manufacture new items and reduces the demand for resources.
Supply Chain Optimization. The implementation of logistics systems that reduce the consumption of resources and energy are excellent allies to minimize the impact on the environment. We see some notable examples in the integration of electric vehicles and optimized routes to reduce carbon emissions; as well as the use of the blockchain platform in supply chains, achieving greater transparency and tracking of products, from their origin to their consumption and recycling.
Surely you could already understand that Circular Logistics requires an abrupt change in how we create and use products, which is why it requires the joint support of governments, industries and consumers.
Let's talk in more detail about the benefits that Circular Logistics brings.
Circular Logistics implies big changes in how we use resources, but not all of them are challenges, Circular Logistics brings benefits for the entire ecosystem. For example:
Waste reduction. The most evident impact of Circular Logistics is the significant reduction of waste. By closing the life cycle of products, tons of materials are prevented from ending up in rivers, contributing to the preservation of ecosystems and the health of the planet.
Innovation and business competitiveness. By adopting circular business models, we open ourselves to new market opportunities, promoting innovation. Companies that implement Circular Logistics practices not only improve their brand image, but also position themselves as leaders in sustainability, attracting new consumers.
New jobs. Circular Logistics is not only a win for the environment, but also for the economy. Creating new jobs in the supply chain requires senior profiles such as circularity consultants and data analysts to collect, analyze and present data related to the circularity of products and materials.
As you can see, Circular Logistics represents a radical change in how we conceive production and consumption. By closing the life cycle of products, we not only reduce the burden on the environment, but we also aim to increase our permanence and quality of life.
Posted by: G.I.Eicom
Leaders in Material Handling & Intralogistics Solutions
