Page 40 - Plastics News April 2023

FEATURE

Benefits from circularity way more than just environmental

lastics have become ubiquitous in area of supply chain management. nesses closer to their customers by in-
Pour daily lives, and their produc- By prioritising the use of recovered troducing greater control and visibility
tion has been on the rise for several materials and other reusable materi- into product demand, service, and or-
decades. However, the negative im- als, businesses can reduce their reli- der processing. This makes planning
pacts of waste from the plastic indus- ance on virgin plastic materials, which and fulfilment more predictable and
try on the environment and human can lead to cost savings when prod- efficient once companies build closer
health are becoming increasingly ap- ucts are recovered at the end of life. relationships with customers and end
parent. Growing awareness of the en- Moreover, using materials designed users. More frequent customer in-
vironmental toll linked to the plastics for durability, reusability, and recy- teraction can also help businesses set
industry has driven increased calls for clability can improve operational ef- up take-back programmes or service
the adoption of more circular systems ficiency by reducing waste, minimis- models.
in the plastics industry.
ing the need for raw materials, and Circularity does require additional
The aim of a circular economy is to reducing quality control issues. logistics resources to facilitate the re-
keep resources in use for as long as Circularity can also help businesses turn of materials, but this can be com-
possible by minimising waste, pro- improve their demand forecasting by bined with other existing delivery or
moting recycling and reuse, and elimi- promoting the use of recycled and repair services to maximise efficiency.
nating waste and pollution. In the con- sustainable materials, which have de- A circular model can reduce the need
text of the plastics industry, circularity mand patterns different from those to transport waste materials to dis-
would mean reducing plastic waste of virgin plastics. Circular material posal facilities. For instance, by utilis-
and pollution by keeping plastic ma- loops often mean materials flow from ing their post-industrial (pre-consum-
terials in use for as long as possible a greater diversity of origins, reducing er) “waste” plastics, businesses can
while also re-evaluating our methods reliance on limited sources. Accurate minimise the associated transporta-
for sourcing plastic raw materials.
demand forecasting helps businesses tion costs and environmental impact.
Moving to more circular economic reduce costs and improve their bot- Additionally, by optimising the local
and operational models will require a tom line by minimising the need for distribution of recycled and sustain-
fundamental shift in the way plastics overproduction, underproduction, or able materials, businesses can reduce
are designed, produced, used, and emergency orders. the need for long-distance transporta-
disposed of. The shift will require col- Another benefit comes in the area of tion, thus reducing carbon emissions
laboration among stakeholders across supplier relationships. By incentivising and reducing costs.
the supply chain, including producers, suppliers to develop more sustain- Finally, there are numerous finan-
manufacturers, retailers, and consum- able and circular products, buyers cial benefits inherent to the circular
ers. This will involve the development can develop more collaborative and model. Returns and repairs become
and implementation of technolo- cooperative relationships with their pivotal to the reuse of products and
gies and processes for designing and suppliers. This can result in the de- components. By investing in repair
producing more sustainable plastic velopment of new business models operations, OEMs and component
products, promoting the recycling that prioritise sustainability and create manufacturers can reduce the costs
and reuse of plastic materials, and im- more value for all stakeholders in the associated with creating new prod-
plementing new business models to supply chain. By working together to ucts. Additionally, prioritising the
profit from a circular economy. achieve common goals, suppliers and reuse of products can create new
The benefits of a circular economy buyers can create a more sustainable revenue streams, particularly in re-
and efficient supply chain while im- manufacturing and repair services.
What’s the incentive for the plastic
industry to adopt circular practices? proving brand reputation and helping Visibility and oversight
Let's take a closer look at how the businesses access new markets that To effectively implement the circular
adoption of circularity can benefit prioritise sustainability. economy model, it’s critical to estab-
businesses, particularly in the specific A circular economy also brings busi-
lish visibility and oversight within the

40 PLASTICS NEWS April 2023