Building a circular supply chain: achieving resilient operations with the circular economy

The Ellen MacArthur Foundation reports on the potential of supply chain experts as key players in the transition to a circular economy. It illustrates the role of supply chains in the operationalisation of a circular economy and the obstacles that exist, as well as solutions that can be used to successfully overcome these obstacles.

Specifically, the SCOR model (Supply Chain Operations and Research) is being revised. Its six process areas are being adapted and expanded to fulfil the requirements of a circular economy. The authors formulate nine focus areas for the transition to circular supply chains:

1. People and structureClear roles and responsibilities as well as employee training are crucial.
   
2. Network designOptimisation of geographical distribution and reorganisation of partnerships and ownership structures.
   
3. Supplier commitmentClear criteria and expectations of suppliers and incentive systems to promote circular practices.
   
4. Data and qualityUtilisation of technologies such as blockchain and digital twins to improve traceability and transparency.
   
5. Metrics and performance managementDevelopment of new key figures to measure the success of circular supply chains.
   
6. Business models and product designLiaise with relevant departments to ensure that products are designed for the circular economy.
   
7. Customer engagementIncentives and convenience for customers to return products after the use phase.
   
8. Financial resourcesSufficient investment in new infrastructures and technologies.
   
9. Politics and legislation: Working with policy makers to create a favourable regulatory environment.

The transition to circular supply chains is complex and requires a holistic approach and close collaboration between different stakeholders. By implementing circular principles, supply chain managers have the opportunity not only to increase the resilience of their networks, but also to make a significant contribution to their company's sustainability goals.

You can download the study here: