Despite the fact that people started making & distributing the products to each other, supply chain management has remained largely unchanged. Raw materials enter, are processed, distributed, or either used before being thrown or disposed of. The linear supply chain has kept the economy running, but a newer & all the more lucrative supply chain method has been gaining traction in some time now: the Circular Distribution Network. This model is a business strategy that inspires the manufacturers & sellers to reuse and recycle waste.
Some of the reasons why circular supply chains can be the future alternate for linear supply chains are as follows:
The Circular Economy's Societal Benefits
In almost every industry, green energy is still a popular issue. Countries across the globe generated a tons of trash in the past years, according to the EPA. As customers generate further waste every year, it's indeed on both the businesses and consumers to choose the products that have a low impact on the environment.
Save Money While Increasing the Value of Your Business
At the first glance, this chain seems to be primarily a technique for businesses to reduce their impact on the environment, but it is more than it appears. The companies can acquire the most from the raw resources they buy by reusing parts and materials.
Sustainable Supply Chain Success Stories
Nike's "Repurpose" software and Adidas' collaboration with the Bilateral Meeting for Ocean Waters show the influence of the circular supply chain. Users are encouraged to recycle their used sneakers at a Nike retail location near them. Those used sneakers are then reprocessed as Nike's "grind substance" which is then used to create new sneakers for sale. This not only keeps old or used shoes out of the land, but it also benefits Nike's image and allows the company to encompass manufacturing costs.
Conclusion
Businesses that want to maintain profits in the 2020s will look for ways to cut costs while pleasing their customers. Having adopted the circular supply chain research methods makes complete sense.
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