Morecompanieshave moved beyond linear "take-make-dispose"modelstowardclosed-loopsupplychains, where products and materials flow back through returns, refurbishing, remanufacturing, or recycling. But turning this concept into a workable system is complex.
To address these questions we are exploring circularsupplychainmodelsforrecyclables, reusable packaging, and reusable products. Thesemodelshelp CPGcompaniesbetter understand how they can close theloop, reducing single-use packaging waste and long-term packaging impact, and engage customers.
The term "closed-loops," on the other hand, is reserved for thesupplychainswhere the manufacturer is reclaiming its products from customers to revalorize them (as a whole or as parts) via new circularbusinessmodels. In this book, either way, thesupplychainis circular, and as far as the product itself, theloopisclosedanyhow.
Formany, this includes circularsupplychains. Circularsupplychainsreduce waste and keep materials and products in use for as long as possible through repairing, reusing and recycling. This creates aclosedloopsystem, meaning better efficiency, lower costs and lower environmental impact for the company.
How theclosed-loopeconomy works Aclosed-loopeconomy is essentially the result of multiplecompaniesoperating on aclosed-loopsupplychain. This requires an intelligent reimagining of how products (and packaging) are designed, manufactured, sold, refurbished, and recycled.
Guide to what isClosedLoopSupplyChain. Here we explain its examples, diagram, benefits, risks, and compare it with open-loopsupplychain.
A: To implement aClosed-LoopSupplyChain, you should design products for recyclability and reusability, develop aclosed-loopbusinessmodel, collaborate with stakeholders across thesupplychain, and invest in technologies that supportclosed-loopoperations.
