An Evaluation Of The Closed-Loop Economy Model
Is your business currently operating under a circular economy? Otherwise known as a closed-loop economy, these models are the key to businesses achieving a healthy balance between sustainability and high-quality product offerings. While it can be a challenge to incorporate these models into already established business operations, it’s worth considering how your business can do so. This post will provide a breakdown of these models and the ways in which your business can benefit from their incorporation.
For those unaware, these economic models are important because they’re capable of eliminating all waste output produced from a businesses’ production processes. Meaning each input in the production processes are reused, recycled, shared, or repaired in some way. How does this benefit a business, though? Many businesses have seen increases in their customer loyalty, a boost in their company’s public perception, and even long-term savings as a result of a reduced reliance on their previous external suppliers.
As the number of businesses that operate under a closed-loop economy increases, the larger the impact on reducing the need for raw material supplies can increase. In turn, this helps improves the health of the environment as well. Internally, businesses operating under this model can boost corporate profits which can be passed on to customers.
How This Model Can Fit The Needs Of Your Business
A closed-loop economy occurs when companies work together to create a closed-loop supply chain. This may involve reconsidering how products and their packaging are not only designed and manufactured but sold, refurbished, and reused. The more businesses join a closed-loop supply chain, the more raw material can be saved and the greater the benefits to companies and consumers can become.
As it stands, a majority of companies currently follow a linear economy model. Meaning raw materials are initially utilized by manufacturers in order to design and create their products. These products are then used and disposed of by individual consumers or companies. Which means the amount of reused or recycled material is very little. A majority of the inputs will be wasted and will be unable to be used in the creation process again.
The processes mentioned above are all avoidable with the help of a closed-loop economy. As this model produces no waste, the raw materials first used see no end. Materials are collected after being consumed and reprocessed into raw materials that are then used for manufacturing. The circle restarts and the cycle continues.
If this model seems like it’d fit the needs of your business, consider checking out the infographic featured alongside this post. Closed-Loop Economy 101 provides businesses with a number of details necessary to make these models work for them. Infographic courtesy of Quincy Recycle.