Take, make, dispose. That is the traditional linear model businesses across industries have taken to production and service provision.

However, as consumers have become more interested in sustainability, companies are moving away from this process. Many are adopting the circular economy model, integrating steps to minimize waste and maximize resource efficiency throughout the supply chain.

The circular economy covers various aspects, from production and manufacturing to reverse logistics and sustainable operations. It emphasizes keeping resources in use for as long as possible, by designing products that can be easily disassembled, repaired, or recycled. The endgame is to reduce waste and extend the life cycle of materials.

This holistic approach requires collaboration across industries and the integration of advanced technologies such as the Internet of Things (IoT) and blockchain, which enhance the traceability and efficiency of circular processes.

Green is the new black

As regulatory pressures and consumer demand for sustainable products increase, the circular economy is essential for businesses to remain competitive and environmentally responsible.

The European Union's Circular Economy Action Plan is accelerating business transitions to adopt circular processes across every stage of its supply chain processes. This has encouraged many businesses to set ambitious sustainability goals, such as achieving zero landfill waste or becoming carbon-neutral within the next decade.

Retail businesses have also been implementing new ways to achieve circularity. Unilever has committed to making all its plastic packaging fully reusable, recyclable, or compostable by 2030. Similarly, IKEA is working towards becoming a circular business by 2030, with initiatives that include using only renewable or recycled materials and designing products for easy recycling.

In addition, companies are recognizing the need for a collective effort to create a sustainable ecosystem. The fashion industry is seeing partnerships between brands and recyclers to tackle textile waste head-on. Companies like adidas and Parley for the Oceans are working together to create products made from ocean plastic waste.

Waste not, want not

As part of their sustainability agenda, companies are increasingly adopting practices that ensure no material in production and manufacturing goes wasted. This can be achieved by upcycling and repurposing end-of-life products to create new products.

Within the electronics industry, companies like Dell are trailblazers in closing the loop by using reclaimed plastics and metals in the supply chain processes of their new products. They are committed to making 50 percent of their product content and 100 percent of product packaging from recycled or renewable materials by 2030.

In addition, biodegradable plastics and modular designs are being further developed to extend product life cycles and minimize waste during production.

Another movement gaining traction within the circular economy is industrial symbiosis. First popularized by eco-industrial parks, this symbiosis is increasingly being implemented across industries to enhance resource efficiency, while creating new revenue streams from waste materials.

Industrial symbiosis uses waste or byproducts from one process within the supply chain as raw materials for another. It reduces waste, cuts costs, and minimizes environmental impact by lowering the need for virgin materials. Companies exchange waste heat, water, and materials, turning waste into valuable resources.

In Kalundborg, Denmark, this symbiosis has shared such surplus resources for over 50 years. The local eco-industrial park has saved the environment four million m³ of groundwater by using water from the surface instead. It has also saved 586,000 tons of CO2 and recycled 62,000 tons of residual materials. Since 2015, the symbiosis network has reduced 80 percent of the CO2 emissions, creating a carbon-neutral local energy supply.

Within the automotive sector, BMW utilizes a closed-loop recycling system for hard metals, reusing used drilling and milling inserts from production equipment, and repurposing them for new productions. This system saves raw materials while reducing the energy needed for production by 70 percent. The process has significantly lowered the carbon footprint of BMW’s manufacturing processes, as CO2 emissions are cut by 60 percent. Overall, the recycling system has allowed the company to reduce its annual tungsten usage by seven tons.

Back to the future

Another focal point within the circular economy is reverse planning. As many companies have begun integrating the process of collecting used products from consumers for reuse, refurbishment, or recycling, the reverse logistics market is growing rapidly. Projections indicate it will reach US$958.3 billion (€866.3 billion) by 2028. Digitalization also aids companies in closing the loop for circular logistics. Technologies such as IoT and blockchain track products throughout their lifecycle, ensuring transparency, and enabling efficient recovery, and recycling processes.

DHL's partnership with Cisco Systems includes collecting used or outdated equipment from CISCO customers, assessing its condition, and determining whether the products can be refurbished, resold, or recycled. This process has enabled CISCO to recover valuable materials, reduce electronic waste, and minimize the environmental impact of its products.

To handle the high volume of returns generated by e-commerce, DHL’s returns service allows customers to return products easily through a network of drop-off points. DHL handles the transportation, inspection, and restocking processes efficiently. This enhances customer satisfaction and ensures that returned products are quickly reintegrated into the inventory, reducing waste and loss of value.

Lease, love, return

Going beyond operational changes, customers are also being engaged in the circular economy. Companies are developing innovative models like product-as-a-service (PaaS). Instead of purchasing products, consumers lease them instead. This approach encourages the return and refurbishment of products, keeping materials in circulation longer.

Signify, formerly Philips’ Lighting, operates as a "Light as a Service" (LaaS) model, where customers pay for lighting rather than the lights themselves. Signify retains ownership of the lighting systems and is responsible for maintenance, upgrades, and recycling at the end of their life. This not only extends the product’s lifecycle but also ensures that valuable materials are recovered and reused.

Retailers are also increasingly promoting in-house recycling programs, where customers can return used products for discounts on future purchases. These initiatives foster customer loyalty and help companies reclaim valuable materials that can be reintroduced into the production process.

In the electronics industry, Apple has been a leader in reverse logistics through its Apple Trade-In program. Consumers can return their old devices, which Apple then refurbishes or recycles. The program is part of Apple’s commitment to a closed-loop supply chain, where the company eventually aims to make all of its products using only recycled or renewable materials.

Similarly, fashion giants have been searching for ways to repurpose old or defective clothing items. Nike’s upcycled sneakers are repurposed into playground surfaces worldwide. H&M’s Garment Collecting program allows customers to return used clothes, which are either resold, recycled into new textiles, or used to create energy.

As of 2023, H&M has collected more than 172,752 tonnes of textiles through this program, highlighting the significant impact that consumer engagement can have on reducing waste. Since 2019, H&M customers in Stockholm have been able to rent clothing from their Conscious Collective collection through platforms such as Singapore’s Rentadella fashion site.

In a world where waste is the new raw material, logistics companies are no longer just moving products—they are moving toward a future where nothing is wasted. Everything has a second, third, or even fourth life. So, the next time you hear the word "waste," remember that it is just a resource in the wrong place.

The circular economy is here to put everything back properly, one recycled product at a time.