Supplying the circular economy: Seven concepts for partnership

Abstract

The circular economy will shift supply chain strategies, operations and partnerships. Circularity refers to identifying, tracking and transforming materials and resources for repeated use. This approach forms the basis of a global economy that decouples economic growth from required virgin resources. The three principles of the circular economy are: 1) design waste out; 2) keep resources and materials in use; and 3) regenerate natural systems. Analyst firms predict in as little as five years global supply chains will be required to embrace circular operations, due to depleting natural resources. Partners across supply networks will come together to solve for circularity and introduce new practices and new measures of success. Seven concepts for partnership in circular supply chains are explored: identify circles, intensify circles, narrow circles, predict circles, slow circles, close circles and capture circles. The role of partnership and measures of success are proposed for each. This paper focuses on circularity in partnerships that stretch across these three scenarios. It explores seven concepts for circular supply chains and the role partnerships will play.