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What Are Circular Supply Chains and Why Are They Important?

On: March 27, 2023    |    By: Dr. Cheryl McCloud Dr. Cheryl McCloud    |    2 min. read

What Are Circular Supply Chain and Why Are They Important? | Shipping SolutionsA circular supply chain offers organizations an opportunity to reuse ostensible waste materials and aims to convert product waste into new products through the process. This is a change from more typical linear supply chains, where manufacturers discard product waste. Circular supply chains offer an advancement in sustainability and environmental opportunities.  

Since 2020, rising costs and lack of access to raw materials have forced manufacturers to find inventive ways to continue production, resulting in a transition from old processes into new ones that offer savings and greener supply chains. The looping process provides benefits in the manufacturing process—lowering shipping and production costs and decreasing the amount of material discarded into the environment. The results ensure less waste, higher profits and a reduced impact on our environment. A win-win for everyone.

Circular Supply Chain Graphic | Shipping SolutionsThe closed-looped system, shown in the model here, helps organizations operating under strict government waste and recycling regulations gain an advantage over competitors and access to consumers who prefer environmentally friendly products.

Additionally, the circular economy concept means opportunities to use current equipment and infrastructure differently and for extended periods, reducing emissions and maximizing outputs. This holistic approach does require a transition from the linear models but is worth the effort, as it also reduces regulatory requirements, avoiding potential penalties from regulatory controls. Effective planning, reviewing, analysis and oversight can ensure a new approach to processes that ultimately translate into new products, lower costs, new revenue streams and customer growth, while supporting green concepts. Modern times demand new conceptualization, and recycling adds many benefits to the supply chain for businesses and the economy, creating more effective methods when limited resources are available.


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Dr. Cheryl McCloud

About the Author: Dr. Cheryl McCloud

Dr. Cheryl McCloud has more than 30 years of experience in global supply chain management and the added distinction of receiving a DBA from Walden University with a specialization in Global Supply Chain Management. As a licensed U.S. Customs Broker and Freight Forwarder, Cheryl owned her international freight forwarding, customs brokerage, distribution, and federal contracting business, providing many services to importers, exporters and the U.S. Federal Government, becoming a 500 Inc. company.

Now, Cheryl is focused on helping small businesses understand the supply chain and regulatory compliance requirements to avoid unwanted risks and financial costs, creating strong profitability. Cheryl has additionally supported the development of new supply chain management programs in local colleges as a professor and currently the Chair of the Education Committee for the International Propeller Club headquarters in the U.S. and has a prodigious interest in the promotion of education, labor growth and opportunities for the maritime business.

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