CIRCULAR ECONOMY
What are the main barriers to the Circular Economy When attempting to implement a circular economy model , organisations face a lack of visibility and monitoring of suppliers ’ data , alongside engagement gaps between their suppliers and procurement teams . To close these gaps , organisations must become more stringent and innovative , striving to make small gains in hard-to-reach places .
Saric says : “ They should also acknowledge that these gains cannot be achieved alone and facilitate better collaboration with suppliers across the value chain . Collaboration with suppliers remains manual and inefficient , limiting its effectiveness and scale . Digitisation can greatly improve both collaboration as well as transparency .”
Asked about one insight that he ’ d like for his audience to be aware of , Saric says : “ While progress can , in part , be measured by financial commitments – the amount being invested into collaborative projects – it can also mean documented evaluations of transport or distribution channels , and the emissions these produce . This might involve more auditable displays of emissions coming from material and energy use .
“ One thing that ’ s clear is that collective accountability is required . And this can only be achieved if everyone is able to share information on emissions across the supply chain – even from sub-tier suppliers – and operate with a single source of truth . Collaboration tools connecting organisations , suppliers , and stakeholders will also be a critical foundation for the circular economy . Tools that drive a smarter , more connected , visible , transparent and collaborative approach are needed to help organisations define and execute circular economy initiatives .”
The future of the Circular Economy Regulations are tightening , and , at the same time , more consumers are casting a watchful eye over sustainability protocols . For this reason , most organisations are now revealing strict and ambitious targets for their 2020- 2050 journey . “ One thing organisations should keep in mind when it comes to implementing plans for a circular economy ,” says Saric , “ is that these efforts don ’ t
“ A circular economy creates much greater efficiency across the supply chain , reducing the number of products that need to be manufactured from scratch . In turn , this reduces the emissions produced during the manufacturing process ”
ALEX SARIC CHIEF MARKETING OFFICER , IVALUA
74 March 2023