In recent years, headlines about climate change and the health of the natural environment have sparked increased interest and awareness across the globe. People and communities are looking for ways to do their part to reduce their carbon footprint and mitigate negative impacts to the environment. Similarly, corporations are looking at the environmental impacts of their processes and making changes where needed. This isn’t merely a moral and ethical necessity — it is also a business imperative. And considering the disproportionately immense part a company’s supply chain plays in its environmental impact, there is no more appropriate place to start. Many organizations have already adopted the circular supply chain model to become more sustainable and environmentally responsible.
What is a Circular Supply Chain?
A circular supply chain model encourages companies to take discarded materials and remake them for resale or use throughout their supply chain. This helps break the cycle of single-use products ending up in a landfill or doing damage to the environment. With many companies looking to increase sustainability efforts, incorporating a circular supply chain model is an ideal and important step.
Making a full or partial switch to a circular supply chain environment can bring numerous benefits:
- Significant cost savings: By reusing materials, companies can reap the maximum benefits out of the raw materials they purchase, lowering the total amount of materials needed — which leads to a lower total cost of business.
- Increased sustainability: Consumers are increasingly conscious of the environmental impacts of the products they use and the companies they purchase from. A circular supply chain helps a business work toward its sustainability and transparency goals, while also catering to consumer demand.
- Enhanced compliance: With climate change continuing as a growing concern, federal and local rules and regulations are already being established to encourage and incentivize businesses to become more environmentally responsible. The circular supply chain model will be essential to setting many organizations up for success.
Among the most important factors in establishing an effective circular supply chain is ensuring that the products and materials used can be recycled back into the supply chain. For example, organizations committed to sustainability may use plastic pallets from iGPS, which are lightweight, durable, and 100% recyclable. Unlike traditional wooden pallets, which many end up in landfills at the end of their lifespan, plastic pallets complete on average a total of 100 trips and can then be recycled into a new pallet — creating cradle-to-cradle sustainability.
The circular supply chain is the way of the future. By transforming waste into reusable materials, companies can open to door to opportunities for sustainability, decreased costs, and enhanced corporate social responsibility efforts.
If you’re ready to establish a circular supply chain strategy in your manufacturing operations, plastic pallet pooling with iGPS pallets is an excellent first step. To get started, call 1-866-556-8015, email a specialist at [email protected], or visit our contact page.