The circular economy in the logistics sector: what it is and how to apply it

The circular economy in the logistics sector consists of redesigning the flows of products, packaging and materials so they stay in use for as long as possible, instead of following the linear "use and dispose" model. In practice it translates into recycling, reuse, remanufacturing and, above all, reverse logistics: returning the product to the supply chain when it reaches the end of its life.

For a transport and logistics company, applying the circular economy is not only an environmental matter: it cuts material costs, improves traceability and provides key data for sustainability reporting and for the carbon footprint.

What is the circular economy in the logistics sector?

In logistics, the circular economy means making use of products and materials that were traditionally discarded, bringing them back into the production cycle. In contrast to the linear model, the circular approach seeks to extend the life cycle of products and minimise waste generation.

The goal is twofold: reduce the exploitation of natural resources and cut waste, keeping the value of materials in circulation. This model also encourages collaboration between companies along the value chain, which usually translates into efficiency and economic savings as well.

What is reverse logistics and how is it applied?

Reverse logistics is the process by which a product, once it has completed its life cycle for the consumer, is brought back into the supply chain for reuse, recycling or remanufacturing. It is the operational heart of circularity in the sector.

A classic example is returnable packaging, such as glass bottles or reusable pallets, which come back to the company to be cleaned and put back on the market. Implementing efficient reverse logistics calls for concrete strategies:

• Efficient transport: optimise routes and modes to reduce the carbon footprint in logistics and ensure products arrive in good condition for reuse.
• Sustainable packaging: use reusable or easily recyclable materials, applying packaging ecodesign to minimise waste.
• Inventory management and traceability: systems that minimise losses and make it possible to track the material throughout the cycle.

The 7Rs applied to circular logistics

Once the supply chain is optimised, efficient waste management is usually organised around the 7R framework, which ranks decisions from highest to lowest environmental priority:

Challenges and opportunities of the circular economy in logistics

The main challenge appears at the design stage: most products and packaging are still conceived under a linear model. Changing that paradigm, creating products designed for recycling and reuse from the outset, is the basis of sustainable logistics.

The opportunities are clear: strategic alliances along the chain, job creation in recycling and waste management, lower material costs and a better position with customers and investors who demand sustainability criteria.

How to measure the impact: emissions and sector standards

Circularity can only be managed if it is measured. To quantify the greenhouse gas emissions associated with transport and logistics, there are specific standards such as ISO 14083 and the GLEC Framework, the reference methodology for calculating the carbon footprint of transport chains.

These methodologies make it possible to measure scope 1, 2 and 3 emissions, monitor them continuously and build realistic reduction plans. Carbon footprint measurement software, in SaaS format, makes this quantification and its tracking over time much easier.

At Manglai we calculate and manage the carbon footprint under the GHG Protocol and ISO 14064 standards, with real-time calculation of scopes 1, 2 and 3, automatic AI-based invoice classification and integrations with ERP and fleet management systems.

Frequently asked questions about the circular economy in logistics

What is the difference between reverse logistics and the circular economy?

Reverse logistics is the set of operations that returns products and materials to the chain. The circular economy is the broader model that uses it to keep the value of resources in use.

What are the 7Rs?

Redesign, reduce, reuse, repair, renew, recover and recycle: a hierarchy of actions to minimise waste and make the most of materials.

How are the emissions of circular logistics measured?

With standards such as ISO 14083 and the GLEC Framework, which let you calculate the carbon footprint of transport by scope and compare scenarios.

If your company wants to measure the impact of its circular and logistics strategy, you can start with Manglai's service footprint, designed for calculating emissions in transport and logistics.