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Circular economy: definition and important aspects for buyers
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The circular economy in a nutshell:
The circular economy is an economic model in which resources are kept in circulation for as long as possible through reuse, repair and recycling. For purchasing, this means the strategic selection of suppliers and products that guarantee recyclability and the implementation of take-back and recycling systems.
Example: A car manufacturer establishes a closed-loop system with its supplier in which 95% of plastic packaging is reused an average of 8 times within 6 months, resulting in an annual reduction of 120 tons of packaging waste.
Contents
Introduction to the circular economy
What is the circular economy?
The circular economy is an economic model that aims to use resources efficiently, minimize waste and keep products and materials in the use cycle for as long as possible. In contrast to the linear economy, which follows the pattern of "take, make, dispose", the circular economy focuses on reuse, repair, refurbishment and recycling. The main aim is to maximize the value of products and materials while reducing negative environmental impacts.
Core elements of the circular economy
Relevance of the circular economy for purchasing
In procurement, the circular economy plays a crucial role in the development of sustainable purchasing strategies. By integrating circular principles, buyers can use resources more efficiently, reduce costs and minimize environmental impact. This includes sourcing durable products, selecting suppliers with sustainable practices and promoting take-back and recycling programs.
Implementation of the circular economy in purchasing
By integrating circular principles into the purchasing strategy, procurement departments can use resources more efficiently and build sustainable supply chains. This includes selecting suppliers with sustainable practices and promoting recycling and take-back programs.
Practical example: Procurement of recycled materials
A furniture manufacturer decides to use wood-based materials made from recycled waste wood for its products. The buyer purchases 500 m³ of recycled wood from a certified supplier. This not only reduces material costs by 20%, but also means that fewer trees are felled. The manufacturer is also establishing a program in which customers can return old furniture, which is then recycled. This creates a closed cycle that offers both ecological and economic benefits.
Evaluation and strategic findings
✓ Critical success factors
→ Supplier integration: close cooperation with suppliers to develop closed material loops and take-back systems
→ Product specifications: Adaptation of purchasing criteria for recycled materials, taking into account quality and availability
→ Process optimization: implementation of tracking systems to monitor material flows and recycling rates
⚠ Challenges
→ Availability: Limited availability of high-quality recycled materials
→ Cost structure: Initially higher investments in recycling systems and reverse logistics
→ Quality assurance: ensuring consistent quality standards for recycled materials
Future trends and implications:
"The circular economy is becoming a strategic imperative for sustainable procurement."
→ Digital material passports for improved traceability
→ Blockchain-based sustainability certifications
→ Innovative business models (product-as-a-service)
→ Increased regulatory requirements for recycling quotas
Conclusion on the circular economy
The circular economy is an essential component of modern procurement strategies. By integrating reuse, recycling and sustainable supplier selection, companies can not only reduce their environmental impact, but also achieve economic benefits. Despite initial challenges such as higher investment costs and quality assurance, the long-term benefits outweigh the costs: Resource efficiency, cost savings and sustainable supply chains. The consistent implementation of circular principles in purchasing thus becomes a key factor for sustainable corporate success.
