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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
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.
Circular economy: from the linear to the circular economy
The circular economy is becoming increasingly important in the modern economy. Building on the theoretical foundation of resource-efficient use, it aims to keep materials and products in the economic cycle for as long as possible. This is essential in practice in order to counteract increasing environmental pollution and promote sustainable growth. There is an urgent need to transform from traditional linear models to a circular approach in order to avoid risk management and assume environmental responsibility.
Old: Linear economy
Traditional approach: The linear economy follows the principle of "take, make, dispose". In practice, this means that raw materials are extracted, processed into products and thrown away after use. Companies focus on short-term production cycles without considering the finite nature of resources. Tools and processes are geared towards maximizing production and minimizing costs, often without sustainable strategies. The main characteristics are high waste production, inefficient use of resources and a lack of take-back systems. This approach leads to environmental pollution, rising process costs and risks in procurement logistics.
New: Circular Economy
Circular economy: The modern approach implements a cyclical use of resources. Companies integrate technologies and processes that promote reuse, repair, refurbishment and recycling. For example, products are designed modularly to enable easy disassembly and material separation. Digital platforms support sharing models, thereby extending the useful life of products. Innovative methods such as urban mining are used to recover valuable raw materials from waste. In practice, this leads to a reduction in raw material consumption and waste, cost savings and an improvement in the sustainability balance. In addition, companies strengthen their competitiveness through future-oriented standardization.
Practical example: Circular economy in the electronics industry
A global electronics group has successfully implemented a closed-loop supply chain. Old devices are taken back from customers, dismantled and valuable materials such as gold, silver and rare earths are recovered. This program has enabled over 50 tons of precious metals to be recycled every year. At the same time, the need for primary raw materials fell by 25%, resulting in cost savings of over 100 million euros. The reuse of components also made it possible to reduce the product costing. The initiative not only improved the environmental footprint, but also increased customer loyalty through sustainable product offerings.
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.
