In today’s world, the basic model for the production of goods is linear: Natural resources are extracted and turned into products that are used for a limited time. While some of these products are recycled, most eventually end up in the world’s landfills.  This model is becoming increasingly unsustainable and expensive for businesses. Commodity prices rose more than 150 percent between 2002 and 2010 and an additional three billion middle-class consumers are expected to enter the global market by 2030. This unprecedented demand for goods and services, coupled with increasing resource scarcity and price volatility, is causing companies to move from a traditional “take-make-dispose” model to a more circular strategy. Closing the loop with innovative logistic solutions In recent years, I’ve seen companies like Dell, Patagonia and TerraCycle focus their sustainability efforts on implementing seamless take-back programs that make use of turnkey packaging, pickup services and pre-paid return labels. With approximately 97 percent of business leaders listing logistics as important to transitioning to a circular economy, partnering with intelligent logistic providers will be crucial for companies to implement cost-effective circular strategies. The future of the circular economy I recently had the opportunity to participate on a panel at GreenBiz VERGE 2016 with Tom Szaky, CEO of TerraCycle, and Kevin Zweier, VP of Transportation Practice at Chainalytics, to discuss trends shaping the future of the circular economy. In addition to the critical role of logistics, major takeaways from the discussions included:

Tailoring the solution

Companies trying to implement circular strategies face a “first-mile” challenge with re-using products and resources for future consumption. Each product in a company’s supply chain must be analyzed based on its unique characteristics from raw material to end-of-life. Circular planning must then be used to determine whether reclaimed products and resources should be transported back to a central hub facility or dealt with on a local level.

Education is key

To build mainstream acceptance and support for a realized circular economy, governments and businesses alike should prioritize educating consumers about circular principles, including which products can be reused, recycled or upgraded. By helping customers make easy decisions when they are done using a product, we can ensure valuable materials don’t end up in landfills.

We all have a role to play

While companies are investing in innovative partnerships and creating more sustainable solutions, there is also a need for customers and consumers to take advantage of these offerings so that these investments can be supported by a strong business case. One of the most common misconceptions about the circular economy is that it will be impossible to achieve. I believe that when companies invest and collaborate to implement “smarter” supply chains and give others an opportunity to participate, the notion of a circular economy can certainly be realized.