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Circular Economy in Supply Chain Management

The concept of circular economy in supply chain management refers to a sustainable approach that aims to minimize waste and maximize resource efficiency throughout the entire supply chain. It is based on the principles of reducing, reusing, and recycling materials and products, as well as promoting the regeneration of natural resources.

In a circular economy, the traditional linear model of production and consumption, which follows a “take-make-dispose” pattern, is replaced with a closed-loop system. This means that resources are kept in use for as long as possible, and at the end of their life cycle, they are either recycled or reintegrated back into the production process.

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Implementing a circular economy in supply chain management involves various strategies and practices. These include:

• Product Design: Designing products with a focus on durability, reparability, and recyclability, ensuring that they can be easily disassembled and their components can be reused or recycled.
• Reverse Logistics: Establishing efficient systems for the collection, sorting, and transportation of used products or materials back to the manufacturer or other appropriate facilities for recycling or refurbishment.
• Collaboration: Encouraging collaboration and partnerships among supply chain stakeholders, including manufacturers, suppliers, retailers, and consumers, to facilitate the exchange and reuse of materials and products.
• Resource Optimization: Implementing measures to optimize the use of resources, such as energy, water, and raw materials, throughout the supply chain, reducing waste and minimizing environmental impact.
• Life Cycle Assessment: Conducting comprehensive assessments of the environmental impact of products throughout their entire life cycle, from raw material extraction to disposal, to identify areas for improvement and inform decision-making.

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The adoption of a circular economy in supply chain management can bring numerous benefits, including reduced waste generation, lower resource consumption, cost savings, enhanced brand reputation, and increased resilience to supply chain disruptions. It also contributes to the achievement of sustainable development goals by promoting a more sustainable and regenerative economy.

Keywords: supply, economy, circular, products, management, materials, sustainable, resource, throughout