The circular economy is the new “buzz word” for industrial symbiosis and (waste) resource management which utilises skillsets from many diverse areas such as supply chain management, CSR and LEAN/Six Sigma.
- Waste is a resource which is not be used correctly
- Often a greater improvement on the bottom line can be achieved through improved management of production costs than can be achieved through increased sales.
The circular economy eliminates the concept of waste and recognises that everything has a value. This includes looking at waste as the underutilisation of resources.
- Circular supply chain: Introduces fully renewable, recyclable, or biodegradable materials that can be used in consecutive life cycles.
- Recovery and recycling: Creates production and consumption systems in which everything that used to be considered a waste is revived for other uses.
- Product life-extension: By maintaining and improving products this model elongates their life.
- Sharing platform: This model helps consumers save money and make money while more effectively using assets.
- Product as a service: Performance of a product is valued over volume of sales and “leases” products instead of selling them.