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Circular Economics

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Circular Economics is the Supply Chain Configuration Strategy that maximizes the income generated from resources acquired through repeated use and eventual recovery of resource value at the end of the lifespan of the product.

This is typically achieved through integrating outbound and reverse flows (known as loops) specifically with the purpose of extending the (income generating) lifespan/use of resources as long as possible.

Circular Economics and its substrategies
The substrategies of Circular Economics are called (process) loops as the product repeats through these loops as many times as possible to yield as much value to the company as possible.
  • Extending Loop - Extend the lifespan of the product at the user
  • Sharing Loop - Share the use of the product over multiple users
  • Repurpose Loop - Share the use over multiple users over multiple user types
  • Renewable Loop - Recover as much of the original resources at the end of the lifespan

Circular Economics is one of the five Supply Chain Configuration Strategies: Make-to-Stock (MTS), Make-to-Order (MTO), Engineer-to-Order (ETO), Reverse Logistics, and Circular Economics.

Use Cases

Notes

Alternative names include: Circular Business Model, Circular Economy, Product-as-a-Service.

Hierarchy

IDNameLevelx
SCCSSupply Chain Configuration Strategy1SCCS
CECircular Economics2CE
CE1Extending Loop3CE1
CE2Sharing loop3CE2
CE3Repurpose Loop3CE3
CE4Renewable Loop3CE4
Circular Economics Supply Chain Configuration Strategy 5 2 Product-as-a-Service, Circular Economy, Make-Reuse-Dispose, Refurbishment, Recycling, End-of-Use, End-Of-Life, Recall, Return, Reverse Logistics, Supply Chain The supply chain configuration strategy that integrates outbound and reverse flows in order to extend the lifespan/use of resources as long as possible