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The circular economy in the logistics sector

Carolina Skarupa

Carolina Skarupa

Product Carbon Footprint Analyst

What is the circular economy in the logistics sector?

In the logistics sector, the circular economy involves utilizing products that were traditionally discarded to extract raw materials for the creation of new products or reintegrating them into the production cycle. This requires applying principles such as recycling, reuse, and remanufacturing.

The traditional linear economy system, based on the "use and dispose" model, is obsolete in the face of the need to minimize our environmental impact. It is now imperative to implement the necessary changes to make the circular economy a reality for businesses, thereby creating a positive impact on the environment.

Applying the circular economy in the logistics field is of paramount importance due to its potential to generate positive environmental impacts. This economic model advocates for recycling as one of the most efficient ways to obtain raw materials, contributing to the conservation of natural resources.

The primary objective of the circular economy is to reduce the exploitation of natural resources. In addition to its positive impact on ecosystems, this model allows for minimizing waste generation, which is highly detrimental to the environment. Its core focus is on extending the lifecycle of products, keeping them within the production cycle for a longer period and preventing them from becoming waste.

The circular economy also encourages collaboration between companies. This collaborative approach not only benefits the environment but also has a positive financial impact on the businesses involved.

Challenges and opportunities for implementing the circular economy

Effectively implementing the circular economy model in companies requires overcoming several significant challenges. These challenges begin at the product design stage, as most products are created under a linear "use and dispose" model. A paradigm shift in design is necessary, where products are conceived for recycling and reuse from the outset. This new approach fosters innovation and opens the door to sustainable logistics.

Once the supply chain is optimized, the next step is efficient waste management, always aiming to maximize resource utilization. A widely used system for this purpose is the "7Rs": redesign, reduce, reuse, repair, renew, recover, and recycle.

The circular economy presents opportunities for companies, such as establishing strategic alliances with governmental entities. Adopting this economic model facilitates the creation of collaboration networks and the implementation of joint policies and strategies between companies and the public sector.

Additionally, the circular economy drives job creation in areas such as recycling and waste management, positively impacting the local economy.

How to integrate the circular economy into logistics

Traditionally, products follow a linear logistics process, ending with disposal by the end customer. However, the circular economy proposes a paradigm shift towards reverse logistics. In this new model, once a product has completed its useful life for the consumer, it is reintegrated into the company’s supply chain for reuse, recycling, or remanufacturing.

A clear example of this model is returnable products, such as glass bottles. After use, these are returned to the company, where they undergo a cleaning and renewal process before being reintroduced to the market.

Efficient implementation of reverse logistics requires specific strategies:

  • Efficient transportation: Optimize routes and transportation methods to minimize environmental impact and ensure that products arrive in good condition for reuse.
  • Sustainable packaging: Use biodegradable or easily recyclable materials to reduce waste generation.
  • Sustainable inventory management: Implement inventory management systems that minimize losses and facilitate product traceability.

Tools to measure and reduce carbon footprint

To effectively measure and reduce greenhouse gas (GHG) emissions, the use of specific tools is essential. Sustainable technologies play a critical role in achieving desired results in emissions management. These tools not only measure emissions but also enable continuous monitoring, which is essential for creating more effective action plans.

Today, there is a wide range of carbon footprint measurement software designed to simplify emissions management and organization. These Software as a Service (SaaS) tools allow for precise quantification of a company’s GHG emissions, offering significant cost savings and real-time support and updates.

At Manglai, we specialize in carbon footprint calculation and management in compliance with the GHG Protocol and ISO 14064 standards.

Our platform offers a suite of features designed to streamline this process:

  • Real-time emissions calculation for Scopes 1, 2, and 3.
  • AI-based automatic invoice analysis and classification.
  • Personalized recommendations and alerts system.
  • Impact analysis and interactive dashboards.
  • Integrations with ERP platforms, fleet management systems, and more.

Carolina Skarupa

Carolina Skarupa

Product Carbon Footprint Analyst

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