How do you incorporate circular economy and life cycle thinking in your supply management?

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Supply management is the process of planning, sourcing, delivering, and managing the materials and services that an organization needs to operate. It is a strategic function that can affect the performance, sustainability, and competitiveness of a business. However, the traditional linear model of supply management, based on a "take-make-dispose" approach, is facing increasing challenges from environmental, social, and economic pressures. How do you incorporate circular economy and life cycle thinking in your supply management?

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Felipe Veit

Bringing AI-Driven Solutions to Digital Procurement | MS Copilot +OpenAI +Groq GPT Developer | MSc Sustainable Business
Rainer Veit

Ich transformiere Ihren Elektronikeinkauf| verbessere Margen|optimiere Lagerbestand und Performance| Obsoleszenz…
Dwight Mitchell

IONOS AGENCY PARTNER - WEB HOSTING - SEO CONSULTANCY - DOMAIN HOSTING

1 Circular economy principles

A circular economy is a system that strives to keep resources in use for as long as possible and eliminate waste, by designing products and services that can be reused, repaired, remanufactured, or recycled. Additionally, it encourages the use of renewable energy and natural resources, while minimizing any negative impacts on the environment and society. By implementing circular economy principles into your supply management, you can reduce costs, risks, and emissions, as well as create new value and opportunities for your business and stakeholders. Examples of such practices include choosing suppliers with circular business models or certifications such as Cradle to Cradle or Circular Economy 100; introducing reverse logistics and take-back schemes to recover products or materials from customers or end-users; collaborating with other organizations or sectors to create industrial symbiosis; and innovating new products or services that are designed for durability, modularity, upgradability, or recyclability.

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Felipe Veit

Bringing AI-Driven Solutions to Digital Procurement | MS Copilot +OpenAI +Groq GPT Developer | MSc Sustainable Business
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Transitioning to a circular economy, where resource reuse minimizes waste, involves multifaceted challenges. Modifying consumer behaviors towards sustainable choices is complex due to long-standing habits. Cross-industry collaboration is hindered by competitiveness and logistical issues, making systemic changes difficult. Also, implementing return systems and take-back schemes, particularly for smaller businesses, can be complex and costly, requiring supportive policies. Additionally, technological advancements in recycling and remanufacturing are essential, as is the need for infrastructural adaptation to support circularity. Hence, a successful transition demands a collaborative, innovative approach from all societal stakeholders.

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André Cerqueira

Especialista em Inteligência de Suprimentos | Procurement | Governan?a | KPI | Gest?o de Fornecedores
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Incentivar a mudan?a de comportamento nos stakeholders é o primeiro passo, mas é um grande desafio, pois estamos falando de mudar hábitos antigos de diversas pessoas. Por isso, ter a alta gest?o patrocinando essa iniciativa pode ser um grande propulsor... No mais, implementar sistemas de return + take-back é uma forma prática de se padronizar esta a??o. Temos que avan?ar no uso de tecnologia que suporte a circularidade de tudo que é 'rodado'. Ent?o, o lado humano alinhado com tecnologias é o caminho para enraizar o pensamento circular dentro da gest?o de Suprimentos.

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Wilton Mota

Gerente Sênior de Logística e Supply Chain
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Incorporar uma economia circular na gest?o de suprimentos envolve compensar o ciclo de vida dos produtos e processos para minimizar desperdícios e maximizar a reutiliza??o de materiais. Adotar práticas como reciclagem, remanufatura e reutiliza??o de produtos e componentes. Implementar estratégias de design para desmontagem e facilitar a recupera??o de materiais. Trabalhar com fornecedores que compartilham os mesmos princípios de sustentabilidade e se comprometem com a economia circular. Focar em modelos de negócios que promovam a longevidade dos produtos e a redu??o de resíduos.

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2 Life cycle thinking

Life cycle thinking is a holistic approach that considers the environmental, social, and economic impacts of a product or service throughout its entire life cycle. It enables you to identify the hotspots and trade-offs of your supply chain, as well as evaluate the potential benefits and risks of different alternatives. By applying life cycle thinking to your supply management, you can improve decision-making, performance, and transparency while aligning your strategy with global sustainability goals and standards. Examples of life cycle thinking tools and methods in supply management include conducting life cycle assessment (LCA) to measure environmental impacts using ISO 14040/44 or ecoinvent; using life cycle costing (LCC) to calculate total costs of ownership or operation; applying social life cycle assessment (S-LCA) to assess social impacts on stakeholders using UNEP/SETAC or Global Reporting Initiative; and developing life cycle management (LCM) strategies to optimize environmental, social, and economic performance by integrating LCA, LCC, and S-LCA results into supply management processes and policies.

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Rainer Veit

Ich transformiere Ihren Elektronikeinkauf| verbessere Margen|optimiere Lagerbestand und Performance| Obsoleszenz Management nach IEC62402/ VDMA24903 Commodity und Supplier Management Outsourcing|Reshoring
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A proper database is essential for a circular economy. First of all a company must know which resources/ materials are used and where it comes from. Most companies think that the reuse /avoidance of packaging material is the right approach for circular economy, not knowing the content/ value of the material used in their goods. In fact it is much more than that since there is a lot of copper, silver, gold, platinum , plastic, aluminum and steel in their products that can be recycled and reused. In most cases companies do not need the quality of ?new“ material. Saying that the first step is the evaluation of material used. There are a lot of new methods and tools available to support this never ending journey

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3 Benefits and challenges

Incorporating circular economy and life cycle thinking in your supply management can bring many benefits to your organization, such as strengthening your brand reputation and customer loyalty by demonstrating your commitment to sustainability, increasing operational efficiency and profitability by reducing waste and creating new revenue streams, and reducing regulatory, market, and reputational risks. Additionally, it can foster innovation and collaboration by engaging with stakeholders to co-create solutions. However, there are some challenges that must be addressed as well, such as technical and logistical barriers, organizational and cultural resistance to change, data and information gaps or uncertainties, and balancing trade-offs between different environmental, social, and economic aspects or impacts of your supply chain.

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Dwight Mitchell

IONOS AGENCY PARTNER - WEB HOSTING - SEO CONSULTANCY - DOMAIN HOSTING
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By integrating circular economy and life cycle thinking into supply management, businesses can reduce environmental impact, improve resource efficiency, and create more sustainable and resilient supply chains.

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Wilton Mota

Gerente Sênior de Logística e Supply Chain
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Os benefícios de incorporar uma economia circular e o pensamento do ciclo de vida na gest?o de suprimentos incluem a redu??o de custos, melhoria da eficiência operacional e aumento da resiliência da cadeia de suprimentos. Além disso, essas práticas recomendadas para a sustentabilidade ambiental e melhoram a privacidade da empresa. No entanto, existem desafios a serem enfrentados, como a necessidade de mudan?as culturais, investimentos iniciais em tecnologias sustentáveis e a complexidade de gerenciamento de cadeias de suprimentos circulares. Superar esses desafios requer comprometimento e colabora??o de todos os stakeholders.

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4 Best practices and tips

To maximize the benefits of incorporating circular economy and life cycle thinking in your supply management, it's important to start with a clear vision and strategy that aligns with organizational values and objectives. Conduct a baseline assessment of your current supply chain performance and impacts, using circular economy and life cycle thinking tools and methods, to identify gaps and opportunities for improvement. Prioritize and implement the most feasible and impactful circular economy and life cycle thinking actions or initiatives in your supply chain, based on assessment results and stakeholder feedback. It’s also important to communicate and engage with suppliers, customers, and other stakeholders throughout the process. Additionally, learn from your experiences and best practices from other organizations or sectors to continuously improve your circular economy and life cycle thinking practices in your supply management.

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Alexandre Lio

Sustainable procurement ???? | Harness the power of the circular economy and sustainable procurement | Experienced practitioner and trainer
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For me there are two ways to get started with this : The first one is to look inward and find easy wins by using suppliers that follow these principles for its own needs, some categories like office furniture or janitorial services or even IT consumables already offer many options that are more ??circular??. Once done with these easy ones, the company can start at looking at its wider supply chain : what does a company buy repeatedly, why ? How can we do as much or more with less ? Then, the second way is to look at what the company sells or manufacture and work on improving their sustainability : can we make products that last longer ? That are more repairable ? Recyclable ?

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5 Resources and references

If you're interested in learning more about circular economy and life cycle thinking in supply management, there are a few great resources you can check out. The Ellen MacArthur Foundation is a leading organization that promotes the circular economy concept and provides practical tools, case studies, and educational programs for businesses and policymakers. The Life Cycle Initiative is another great resource, as it is a global partnership that supports the application of life cycle thinking in decision-making and provides guidance, training, and databases for life cycle assessment and management. Additionally, the International Institute for Sustainable Development (IISD) is a think tank that conducts research and analysis on sustainable development issues and provides policy recommendations and best practices for governments and businesses. Finally, the World Resources Institute (WRI) is a research organization that focuses on the nexus of environment, development, and governance, and provides data, tools, and solutions for sustainable resource management.

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Wilton Mota

Gerente Sênior de Logística e Supply Chain
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A utiliza??o de recursos e referências pode ajudar a implementar a economia circular e o pensamento do ciclo de vida de forma eficaz. Refere-se a normas e diretrizes internacionais, como as normas ISO 14040 para análise de ciclo de vida e as diretrizes da Funda??o Ellen MacArthur para economia circular. Participar de organiza??es e iniciativas que promovem práticas sustentáveis, como o Global Reporting Initiative (GRI) e o Carbon Disclosure Project (CDP). Invista em ferramentas e software de gest?o de sustentabilidade que facilitem a coleta e análise de dados ambientais. Mantenha-se atualizado com as últimas pesquisas e publica??es na área de sustentabilidade e economia circular.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Wilton Mota

Gerente Sênior de Logística e Supply Chain
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Além das práticas mencionadas, considerar outros fatores pode aprimorar a incorpora??o da economia circular e do pensamento do ciclo de vida na gest?o de suprimentos. Fomentar a inova??o e a pesquisa para desenvolver novos materiais e processos mais sustentáveis. Estabelecer parcerias estratégicas com outras empresas e organiza??es para compartilhar conhecimentos e recursos. Promover uma cultura organizacional que valorize a sustentabilidade e a responsabilidade social. Incentivar o feedback contínuo dos stakeholders para identificar áreas de melhoria e adotar as práticas conforme necessárias.

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How do you incorporate circular economy and life cycle thinking in your supply management?

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1 Circular economy principles

2 Life cycle thinking

3 Benefits and challenges

4 Best practices and tips

5 Resources and references

6 Here’s what else to consider

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