New studies measure the benefits of the circular economy
The concept is conceived as a continuous positive development cycle that preserves and enhances natural capital, optimizes resource yields and minimizes system risks by managing finite stocks and renewable flows.
Two reports from prominent global think tanks bring into question some past “best practices” of supply chain management, which may soon be regarded as not only antiquated, but wasteful as well.
Researchers from the Ellen MacArthur Foundation maintain that the linear “take, make, dispose” model—the dominant economic template of our time—relies on large quantities of easily accessible resources and energy, and therefore is increasingly unfit for today’s complex global trade networks.
Unfortunately, researchers add, working toward efficiency by reducing the resources and fossil energy consumed per unit of economic output will not alter the finite nature of their stocks—but can only “delay the inevitable.”
They conclude that a more fundamental change of the operating system is necessary because the concept of the circular economy has been gaining traction for a variety of obvious reasons. According to the Ellen MacArthur Foundation, the circular economy is characterized (more than defined) as “an economy that is restorative and regenerative by design and which aims to keep products, components and materials at their highest utility and value at all times.”
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Two reports from prominent global think tanks bring into question some past “best practices” of supply chain management, which may soon be regarded as not only antiquated, but wasteful as well.
Researchers from the Ellen MacArthur Foundation maintain that the linear “take, make, dispose” model—the dominant economic template of our time—relies on large quantities of easily accessible resources and energy, and therefore is increasingly unfit for today’s complex global trade networks.
Unfortunately, researchers add, working toward efficiency by reducing the resources and fossil energy consumed per unit of economic output will not alter the finite nature of their stocks—but can only “delay the inevitable.”
They conclude that a more fundamental change of the operating system is necessary because the concept of the circular economy has been gaining traction for a variety of obvious reasons. According to the Ellen MacArthur Foundation, the circular economy is characterized (more than defined) as “an economy that is restorative and regenerative by design and which aims to keep products, components and materials at their highest utility and value at all times.”
About the Author
Patrick Burnson, Executive Editor Mr. Burnson is a widely-published writer and editor specializing in international trade, global logistics, and supply chain management. He is based in San Francisco, where he provides a Pacific Rim perspective on industry trends and forecasts. He may be reached at his downtown office: [email protected].Subscribe to Supply Chain Management Review Magazine!
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