Looming resource shortages, rising and volatile commodity
costs, new technologies, extending producer responsibility
regulations, landfill bans, and changing customer preferences are driving
a shift in our economy's current business paradigm. We are experiencing an
exponentially growing population and the scarcity of non-renewables.
Acknowledging these issues and more, it is imperative that businesses move from
a "take-make-waste" business model into a circular economy
business model. These circular economy business models are based
on longevity, renewability, reuse, repair, upgrade, refurbishment, sharing and
dematerialization. Lessening the impacts on the environment, this new way of
conducting business presents a completely different view on
the mission of a business.
Not surprisingly, the supply chain is the area of a
business in which the greatest amount of improvement and waste reduction can be
made. From sourcing to manufacturing to distribution to retailer to
customer...the possibilities are endless. These kind
of improvements require thinking from the bottom up, rather than making
incremental resource efficiency improvements as time goes on.
Creating a closed loop is important for many reasons including: development of
new markets, creating a continuous improvement platform, building
value-added customer relationships, achieving cost savings,
and building brand a reputation.
So what does it take to make these changes?? It certainly starts
with the mindset of the business and involves a future-looking model. It starts
with management and executive commitment. It involves a strategic
business plan that involves essentially the entire
supply chain. It involves investment into R&D and establishing
relationships with suppliers...
This is all much easier said than done, but the payoff
represents the future of our economy. No longer can we continue to risk
resource shortages, natural resource depletion and waste of surplus
resources.
For me, this is an exciting time to be entering
the business world. There are numerous advancements
and improvements to be made and though I do not necessarily have the
answers, I look forward to making moves towards the solutions.
source used: http://www.greenbiz.com/article/how-circular-economy-could-end-take-make-waste-businesses





