Backstage: Behind Beyond the Buy Episode 2 with TULU: A Holistic Approach to Circular Value Chains & Sustainable Business Best Practices

Providing Value for companies, consumers, and the planet - How Reverse Logistics and Circular Models Are Shaping the Future of Manufacturing, Retail, and Consumer Goods

I would love to hear your thoughts and perspectives on the topic!

Feel free to reach out to me Hila-Hillary Katz or share in the comments what are you doing to drive sustainability in your company, industry or what do you as a shopper hope to see!

The conversation around sustainability has become a staple in nearly every industry—whether it’s manufacturing, consumer goods, retail, or logistics. Phrases like “sustainable practices” and “driving sustainability” are used constantly (I myself have even put it on my LinkedIn liner), but what do they really mean? More importantly, how are companies implementing these sustainable measures, and how are partnerships driving these efforts?

In this piece, I'll provide a deep dive (as much as we can in a 2,000 words newsletter) into circular value chains, explore the role of reverse logistics, and provide practical steps for businesses to move beyond talk and into action. We’ll also showcase real-world examples from companies leading the way.

"In a world where sustainability is increasingly demanded by consumers and regulators alike, a circular value chain is no longer a buzzword—it’s an operational imperative."

So, What is a Circular Value Chain?

A circular value chain refers to a system designed to optimize the flow of resources, enabling products and materials to be returned to the supply chain—from the end user back to the manufacturer or retailer. Unlike the traditional linear model of “take, make, dispose,” a circular value chain creates opportunities for reuse, refurbishment, and recycling at multiple stages of a product's lifecycle. 麦肯锡 does a great job explaining it in detail in their latest report .

For example, when a customer returns a product, rather than discarding it, the retailer assesses its condition and decides the next phase: whether to resell it, refurbish it for another customer, or recycle it into raw materials. This process significantly reduces waste, minimizes resource use, and can even create new revenue streams for businesses. In a world where sustainability is increasingly demanded by consumers and regulators alike, a circular value chain is no longer a buzzword—it’s an operational imperative.

"When a customer returns a product, rather than discarding it, the retailer assesses its condition and decides the next phase: whether to resell it, refurbish it, or recycle it into raw materials. This process significantly reduces waste, minimizes resource use, and can even create new revenue streams for businesses"

Moving Beyond Recycling: Understanding the Full Scope of Circularity

When you think of a circular economy, the first thing that often comes to mind is recycling—taking a product at the end of its life, transforming it into something new, and putting it back into the supply chain. But circular value chains go far beyond recycling. They encompass reuse, refurbishment, remanufacturing, and upcycling, ensuring that products and materials are designed, produced, and managed in a way that minimizes waste at every stage of their lifecycle.

One innovative model discussed in a previous podcast episode is the sharing economy, where consumers rent products instead of owning them. This reduces the number of products that need to be manufactured, shipped, or returned.

Imagine the energy saved when fewer products are transported or when reverse logistics handles fewer returned goods.

"Efficient post-purchase platforms, such as ReturnGO, Narvar, or Loop, for returns management can help retailers better manage returned goods, providing a unified system that oversees the condition of returned items and decides their fate—whether it's back to inventory, resale, refurbishment, or recycling."

Practical Tips and Steps - Circular Value Chain in Practice

Who doesn't love practicality!

Generally speaking, in order to successfully integrate circular value chains, companies need to adopt a variety of strategies that not only optimize processes for sustainability but also maintain profitability. Here are five actionable strategies for businesses looking to enhance their circular models.

1. Sharing Economy Platforms and Product-as-a-Service (PaaS)

The sharing economy enables consumers to rent products rather than own them outright, thereby reducing overproduction and waste. The Product-as-a-Service (PaaS) model is another innovative approach in which consumers pay for the service a product provides, rather than owning the product itself. This system keeps products in circulation for longer, encouraging sustainable consumption patterns and reducing the demand for new products.

Brand Examples: Zipcar revolutionized car rentals by offering hourly rentals, reducing the need for individual car ownership. AirBNB also introduced us to the idea of sharing our homes. And all the scooter companies like Bird, Lime, Dot and more introduced the concept of sharing scooter around the city.

Companies, Startups and Technology: TULU , a fast-growing company, allows consumers to borrow items like kitchen appliances, tools, and bikes rather than purchasing them; Rentif; Rundle;

Know more? Share in the comments and I'll add to the list!

2. Repair(able)-as-a-Service

Repairability is a cornerstone of circularity. Electronics and even apparel should be designed to be easily repaired, extending the lifecycle of products and minimizing waste. Instead of replacing a device or piece of clothing when it breaks, businesses can offer replacement parts or repair services to their customers. This strategy not only helps reduce waste but also fosters customer loyalty, as consumers increasingly value products with longer lifecycles.

Brand Examples: Fairphone is a leader in designing modular smartphones, allowing users to replace broken parts instead of purchasing a new phone. In the apparel industry, Patagonia has been a pioneer in repair services, encouraging customers to repair their outdoor gear rather than replace it. Adidas offers repair solutions and they also lead The Textile Recycling Excellence Project (T-REX), EU publicly funded research project that aims to create a blueprint for recycling textile waste in Europe. They are a member of the US based Remade institute, which brings together industry innovators, academic researchers, trade organizations, and national labs to accelerate the U.S.’s transition to a Circular Economy.

Companies, Startups and Technology being used: The Seam ; The Cobblers ; SOJO online tailoring and repairs; De Steek; Mended; Byewaste.

Know more? Share in the comments and I'll add to the list!

3. Re-sell and Pre-Owned Markets

The re-sell or pre-owned market is an integral part of the circular economy, enabling businesses to extend the life of their products while offering consumers more affordable, sustainable options. By embracing the resale of returned or pre-owned items, companies can generate additional revenue streams while reducing the need for new product manufacturing. This model not only supports sustainability but also meets growing consumer demand for eco-friendly shopping alternatives. We do need to separate this to two categories - one is re-sell platforms, and the other is retail brands that are owning their re-sell platform and strategy and directly handling them.

Brand Examples:

Platforms - The RealReal , a luxury resale platform, has built an entire business on extending the lifecycle of high-end fashion. Hardly Ever Worn it; Vestiaire Collective Europe’s biggest resale site for luxury fashion; Depop is Gen Z’s favourite resale site and app; Vinted resale space with item authentication.

Brands - Patagonia operates its Worn Wear program, allowing customers to buy pre-owned Patagonia gear, thereby reducing waste and promoting responsible consumption. By adopting these strategies, brands can contribute to a more sustainable marketplace while capitalizing on the rising trend of second-hand shopping.

Companies, Startups and Technology: Renbizz ; Treet ; Recurate (acquired by Trove Recommerce)

Know more? Share in the comments and I'll add to the list!

4. Sustainable Packaging Solutions

Packaging is often overlooked as a major contributor to waste, especially in e-commerce. However, companies are starting to rethink their approach by switching to reusable packaging and biodegradable materials. This not only cuts down on waste but also provides consumers with a more sustainable option for product returns.

Brand Examples:

Companies, Startups and Technology being used: Tipa compostable packaging; EcoEnclose ; Circulate; Hipli takes it a step further by introducing packaging bags and a SaaS trackable platform, they are going to be featured on Beyond The Buy Podcast, so stay tuned!

Know more? Share in the comments and I'll add to the list!

5. Textile Recycling and Upcycling

The fashion industry has been one of the largest contributors to waste, but many companies are embracing circular fashion models to mitigate their environmental impact. By encouraging customers to return used garments for recycling or resale, companies are reducing the demand for virgin materials. Additionally, the concept of upcycling—turning discarded textiles into new products—has gained traction as a sustainable fashion strategy.

Brand Examples: H&M Group has rolled out its garment collection program globally, inviting customers to drop off unwanted clothing for recycling. Meanwhile, Eileen Fisher is known for upcycling fabrics into new collections, demonstrating how sustainability can be woven into every aspect of the production process. 迪卡侬 and Recyc'Elit?? team-up to innovate in textile recycling to developing recycled products from textile waste, with applications in a wide range of industries.

Companies, Startups and Technology: Algaeing and Vividye are both innovative sustainable coloring for textile; RE&UP Recycling Technologies ; Syre; Circ; SuperCircle ; ReFresh Global for upcycling; Retrieve for clothing, shoes and electronics.

Know more? Share in the comments and I'll add to the list!

6. Donation Programs

Donation programs offer a valuable way for companies to manage excess inventory, returned products, or items that cannot be resold while contributing positively to society. Instead of discarding or recycling unsellable items, businesses can donate them to charitable organizations, helping to reduce waste and support communities in need. This approach ensures that products still have value even when they cannot re-enter the traditional sales or resale channels.

Brand Examples: Nike runs donation programs for gently used footwear and apparel, distributing them to communities in need through partners like Good360.

Companies, Startups and Technology: LiquiDonate connect retailers to nonprofits or upcyclers; Thread Together .

Know more? Share in the comments and I'll add to the list!

7. Renewable Energy Systems

Using renewable energy such as solar, wind, and hydroelectric power reduces reliance on finite resources like fossil fuels, directly supporting the circular economy. This isn’t just about optics—renewable energy systems help businesses cut operational costs and lower their carbon footprint, while aligning with sustainability goals. Moreover, green energy can power not just the production side of the business but also supply chain logistics, ensuring that sustainability flows through the entire value chain.

Brand Examples: 宜家 has made significant strides by installing solar panels across its global stores and distribution centers. Similarly, Walmart aims to power 100% of its operations with renewable energy by 2035. 安海斯 - 布希英博 is also working to reduce energy used as the most important tool in decarbonizing their energy consumption. Their 2025 renewable electricity target extends to malting verticals, this contributes to more than 100,000 tons of CO2 reduction.

Companies, Startups and Technology being used: SolarEdge Technologies ; Optibus ; H2Pro ; Ampere

Know more? Share in the comments and I'll add to the list!

Reverse Logistics: The Post-Purchase Phase in Circular Value Chains

One of the most crucial elements of a circular value chain is reverse logistics—the process by which products are returned, refurbished, or recycled. Unlike traditional logistics, which focus on delivering products to customers, reverse logistics deals with the return and post-purchase lifecycle of a product. This step is essential for ensuring that returned goods are either resold, repaired, or recycled in a way that maximizes their value while minimizing environmental impact.

McKinsey estimates that optimizing reverse logistics could reduce logistics expenses by up to 30% for high-value items like electronics, thanks to reduced storage and distribution costs.

Efficient post-purchase platforms, such as ReturnGO , Narvar , or Loop, for returns management can help retailers better manage returned goods, providing a unified system that oversees the condition of returned items and decides their fate—whether it's back to inventory, resale, refurbishment, or recycling. And insight!

"..in order to successfully integrate circular value chains, companies need to adopt a variety of strategies that not only optimize processes for sustainability but also maintain profitability."

The Growing Importance of Circular Value Chains

The push toward circular value chains is not only a response to consumer demand but also a necessary adaptation to evolving regulations. Initiatives like the European Union’s Circular Economy Action Plan are setting new standards for businesses to reduce waste and lower their environmental footprints. Companies that adopt circular models now will gain a competitive advantage by future-proofing their operations and reducing the long-term costs of compliance.

A McKinsey study estimates that the circular value chain market was worth $700 billion in 2023 and is expected to grow to nearly $1 trillion by 2028. These numbers reflect the increasing pressure on companies to adopt sustainable practices, not just to reduce waste but to capture new revenue streams through the reuse, refurbishment, and recycling of products.

So... exploring the growing significance of circular value chains and reverse logistics in indeed interesting, but the conversation doesn’t stop here.

What steps have the brands you interact with taken to drive circularity and sustainability?How can consumers play a key role and take more ownership?

What circular initiatives have you encountered in your industry? And what are brands implementing?

I invite you to share your insights, examples, and thoughts. Together, we can continue the discussion and push the envelope on sustainable business practices!

Feel free to reach out - [email protected]

Check out these great resources!

Key elements of supply chain management , IBM

A new holistic view on circular value chains , 麦肯锡

Sustainable Supply Chain Transformation , 德勤

Beyond The Buy Podcast , ReturnGO