We began our sustainability journey at ReTrace project with the mission statement towards circular economy and our initiative “Zero Waste“, a corporate imperative, as part of our overall strategy. The goal is to minimize the environmental impact of our products – from supply chain, over the production in our plants to end-of-life – thus make a contribution to transition towards Circular economy.
Closing the loop is a supreme documentary on circular economy. Closed-loop Supply Chain Management (CSCM) covers every level of the supply chain, from product concept to distribution and collection procedures. Reducing CO2 emissions, reducing energy and water consumption as well as amplifying the social impacts are just a few ongoing objectives to mention. Moreover, success hinges on the adoption of sustainable techniques companywide, as well as with all suppliers. Getting started requires knowledge of the methods and how to implement them.
Why manufacturers should aim for closed-loop supply chains?
- Cost savings
They can simply save money on energy-intensive manufacturing processes, and regulatory red tape of waste management and disposal by rerouting their end-of-life products. Better yet – reselling and re-using the recovered products will add surplus revenue stream into their income statement.
- Faster procedure
Supply chains can be very well organized together under one strategy and vision when they audit and restructure their manners and practices to methods of elimination of waste. In other words, to make zero-waste their business goal and develop a closed looped self-sustained supply chain. This kind of systematic approach saves you time, costs, recuperates margin and also paves the road to sustainability.
Some of successful businesses across the world that have gone circular, generating social and environmental benefits while making money are presented below. Get some stimulation and join the movement of the new economy.
- It’s amazing to see global well-known manufacturers as well as flagship brands such as Adidas captivating the right paces toward sustainable products made from ocean plastics and a closed-loop recycling supply chain. Adidas CEO Kaspar Rorsted said that sustainability is “one of the biggest, if not the biggest growth opportunity for us in the years to come.” [1]
- Audi CO2 program claims that they are able to save up to 1.2 tons of carbon dioxide per vehicle. For instance, they are already able to save 90,000 tons CO2 per year regarding aluminium by implementing closed loop supply chains [2].
[1] https://www.glossy.co/fashion/why-adidas-sees-sustainable-products-as-a-growth-opportunity-for-years-to-come
[2] https://www.audi-mediacenter.com/en/press-releases/one-year-of-the-audi-co2-program-reduction-potential-of-12-tons-of-co2-per-car-identified-12387
