Change is constant because people continue to discover better ways to do things. A “better way” on my mind right now is the advantage a circular economy has over a linear economy.
The importance of a circular economy was reinforced to me after I recently interviewed Dame Ellen MacArthur as part of Gartner’s Supply Chain Leaders Forum.
Dame Ellen became the fastest person to circumnavigate the globe single-handed in 2004. Her time alone at sea impressed upon her the meaning of finite resources. She had to carry everything she needed for survival and use it efficiently. This experience inspired her to create the Ellen MacArthur Foundation to promote the idea of a circular economy.
When I think of Dame Ellen on her sailing vessel in the middle of the ocean, it reminds me of our collective experience. We are all on a vessel (Earth) floating on a vast ocean (space). We must use our finite resources wisely because we only have one planet.
Why A Circular Economy?
The fact resources are finite is a persuasive reason to switch from a linear economy to a circular economy. In a linear economy, finite resources are extracted to make products which are used and then discarded. A circular economy is better because it is regenerative rather than wasteful. Resources go further because they are recovered at the end of a product’s life.
When resources are kept in circulation, waste is minimized. This is better than the “old” way of doing things – manufacture, use once, then dispose. The below infographic from Gartner clearly illustrates why a circular economy makes sense.
What is better – a straight line to landfill, or a continuous circle of recycling, refurbishment, and parts harvesting?
As someone who works in Supply Chain and Operations, the circular way is the sane and responsible way to do business. This is particularly true in our current environment of supply chain constraints.
The supply chain becomes more resilient to disruption and responsive to demand when materials are kept in circulation for as long as possible. Of course, the materials must be of high quality to compete with existing products. This is possible though. Product refurbishment and parts harvesting works best when companies work together.
Building A Circular Economy Takes Cooperation
I love sports, therefore I like competition among companies. A competitive spirit often brings out the best in people and inspires innovation.
However, the adoption of a circular economy is too big and important a challenge to face alone. Through cooperation, companies will achieve more together than if they go it alone.
Lenovo’s supply chain has found success in consortiums across various functions of our business. For example, when we developed Lenovo Value Recovery – a way for customers to benefit from refurbished server hardware – we partnered with MFP Technology Services.
Our partnership with MFP is part of our own circular economy journey. It makes sense to partner with an industry leader who specializes in refurbishing, locating, and delivering hardware in the secondary market. This collaboration will help us provide quality, value, and sustainability to our customers.
Look at your own supply chain and operations and ask yourself:
What partnerships or alliances can we form to keep materials in use for as long as possible, at high quality, or even return materials into the environment with positive impact?
A Circular Economy Requires Us to Adopt a Regenerative Frame of Mind
A circular economy model is transformational in the sense that it must be applied to every stage of business. Those of us who work in Supply Chain and Operations are in a unique position to help our organizations build and adopt a circular economy.
To create this requires a new mindset. The old, linear way of thinking is sometimes hard to shake. I think the best way to start thinking differently is to make individual choices now which show we support a regenerative economy.
For me, the positive experience of installing solar panels on my roof has put me in a ‘regenerative’ frame of mind. I’m sure there are countless other choices too! Look at your own life. What individual changes can you make to help you think about the circular economy for your organization?
Only when we make positive and sustainable changes in our own lives can we help others do the same.
About the Author
Renée Ure is Chief Operating Officer for the Lenovo Infrastructure Solutions Group (ISG). She leads a Global Team responsible for internal operations and efficiency, cost, expense, transformation, supply chain & procurement with a mission to become the most trusted smart infrastructure partner for Lenovo’s customers. Start a conversation with Renée here, LinkedIn or on Twitter.
