Circularity

The aim of zero waste programs is to protect the environment and human health by preventing any waste from entering the soil, water, or air. This is often seen as a key component for a fully sustainable future.

There are many opportunities for the logistics industry to support companies to work towards a zero-waste goal through the lens of Circularity. In the realm of packaging, an initiative called The Loop Alliance showcases coordination between large manufacturers, retailers, service providers, and non-governmental organizations to redesign packaging and synchronize the required supply chains to produce, clean, return, and refill containers for both in-store and e-commerce channels. Regarding transportation, ongoing improvement in carbon capture technology is enabling emissions to be filtered out more effectively from vehicle tailpipes. The collected carbon dioxide can then be sold to greenhouses, carbonated water producers, and other businesses for use as raw material.

But also, for example, the electrification of ground operations, the investment in carbon neutral buildings as well as the conversion of warehouse operations to avoid waste are measures that logistics companies have to take in order to integrate a holistic zero waste approach into their operations.

As supply chain organizations pursue zero waste using Circularity principles, they can achieve significant waste reduction and, at the same time, minimize direct and indirect costs associated with waste.

As more companies around the world join the circular economy to reduce waste and save costs, they will be reexamining and redesigning their supply chains to conform with Circularity principals. For organizations in logistics, from those handling storage to those delivering in the last mile, this can mean sizeable shifts in operations. To clarify, warehouses and transport vehicles will still exist, but logistics providers may see increased demand for value-adding services for products and materials they currently do not carry.

For example, last-mile courier vans may integrate more in the broader returns market, not only dropping off e-commerce packages, but also picking up depleted toner cartridges, batteries and gas cylinders from homes to then deliver to refill sites. Warehouses may see a greater throughput of secondary raw materials like fabric scrap or reprocessed lubricants and may need to reconfigure facility floorspace and operations to unload, store, and load more of these products.

Additionally, in the electronics industry, 57.4 million metric tons of e-waste were produced in 2021, with only about 20% of e-waste recycled through formal channels. This means there is a huge opportunity for better hardware return logistics – especially with the growing use of sensors, robots, and other technologies – and more parts repair, reuse, and recycling.

Overall, the logistics industry needs to anticipate and prepare for the global and local supply chain changes and value-adding opportunities that circularity will bring.