Page 45 - Plastics News August - 2023

FEATURE

suppliers. This can result in the de- tion costs and environmental impact. including material planning, procure-
velopment of new business models Additionally, by optimising the local ment, production, distribution, and
that prioritise sustainability and create distribution of recycled and sustain- returns. This enables businesses to
more value for all stakeholders in the able materials, businesses can reduce optimise each stage for maximum effi-
supply chain. By working together to the need for long-distance transporta- ciency and sustainability. It also allows
achieve common goals, suppliers and tion, thus reducing carbon emissions companies to become more agile and
buyers can create a more sustainable and reducing costs. respond quickly to any issues that may
and efficient supply chain while im- Finally, there are numerous finan- arise. Although full oversight is not vi-
proving brand reputation and helping cial benefits inherent to the circular able for every value chain member, it
businesses access new markets that model. Returns and repairs become is a beneficial position to aspire for.
prioritise sustainability. pivotal to the reuse of products and Supply chain traceability
A circular economy also brings busi- components. By investing in repair Traceability is pivotal to achieving a cir-
nesses closer to their customers by in- operations, OEMs and component cular economy as it allows businesses
troducing greater control and visibility manufacturers can reduce the costs to ensure that materials and products
into product demand, service, and or- associated with creating new prod- are being sourced and disposed of re-
der processing. This makes planning ucts. Additionally, prioritising the sponsibly. A lack of traceability means
and fulfilment more predictable and reuse of products can create new that companies must resort to down-
efficient once companies build closer revenue streams, particularly in re- cycling and waste generation, instead
relationships with customers and end manufacturing and repair services. of utilising the end-of-life material in
users. More frequent customer in- Visibility and oversight more efficient – and profitable – ways
teraction can also help businesses set such as upcycling, repair, and remanu-
up take-back programmes or service To effectively implement the circular facturing.
models. economy model, it’s critical to estab-
lish visibility and oversight within the Technology to achieve traceabil-
Circularity does require additional value chain. Visibility refers to the ity already exists. The challenges to
logistics resources to facilitate the re- ability to track and monitor the flow achieving traceability are implementa-
turn of materials, but this can be com- of materials and products throughout tion and value chain cooperation. The
bined with other existing delivery or the supply chain, from raw materials required data is available, but it is not
repair services to maximise efficiency. to end-of-life. This enables businesses shared reliably, efficiently, or is not
A circular model can reduce the need to identify areas of inefficiency and shared at all. With greater connection
to transport waste materials to dis- waste within the system, as well as to throughout the value chain, by means
posal facilities. For instance, by utilis- ensure that products are being used of collaboration and information shar-
ing their post-industrial (pre-consum- and disposed of properly. ing, there is a huge potential for gen-
er) “waste” plastics, businesses can Oversight involves having influence erating profit and mitigating environ-
minimise the associated transporta- over all stages of the supply chain, mental impact.

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PLASTICS NEWS 4545
August 2023
August 2023 PLASTICS NEWS