Andrés Oliva Lozano
Senior Research Analyst, Ellen MacArthur Foundation
Supply chains have the opportunity to prepare for future global disruptions by adopting circular economy practices.
Whether it was through television, radio or a newsfeed, we have all witnessed the stories unfold around Covid-19, global conflicts and the tough economic headlines of inflation and recession over the last few years.
These significant, global ‘where-were-you?’ moments seem only to be increasing in frequency, and the knock-on effects are becoming more apparent in our everyday lives, whether it is through price hikes or empty shelves.
Future-proofing through circular supply chains
Business leaders are rightly seeking to future-proof their organisations against global disruptions while meeting an ever-growing demand for lower costs and increasing environmental expectations.
Supply chain professionals, responsible for sourcing and moving the 100 billion tonnes of material that enter the global economy each year, will be crucial to solving this challenge.
Traditional supply chains were configured to support linear ‘take-make-waste’ models. In contrast, a circular supply chain will encourage the elimination of waste, the circulation of products and materials and the regeneration of nature.
A circular supply chain will encourage the
elimination of waste, the circulation of products
and materials and the regeneration of nature.
Mitigate risk and enhance sustainability
Switching to a circular supply chain and decoupling operations from natural resource consumption offers the opportunity for businesses to reduce their exposure to price volatility, increase material security and help meet environmental objectives.
‘Building a Circular Supply Chain’ — a recent white paper by the Ellen MacArthur Foundation — sets out the benefits and critical next steps of integrating these practices into an organisation’s operations.
Leaders in this space can begin to build their circular supply chains by focusing on nine areas, including engaging with suppliers, changing business models and redesigning their supply networks.
Staying ahead with circular practices
In a world of ever-increasing shocks and challenges, it is essential that those working across global supply chains stay one step ahead of further disruptions by adopting circular economy practices and future-proofing their organisations.
Supply chain professionals can learn more about how to adopt circular economy practices into their operations by visiting ellenmacarthurfoundation.org/circular-supply-chains
