5 Ways to Reinvent Your Business Through the Circular Economy
Interested in how to reinvent your business through the circular economy? You can learn more about how UPS is enabling the circular economy for small business on this webinar recording.
But progress has come at a price.
Global warming, resource depletion and pollution threaten to derail the tremendous progress from the past century. According to Circle Economy, a consultancy, we reuse just 9 percent of materials consumed globally.
Even in the European Union, a leader in environmental protection, only 40 percent of total waste is recycled. Our hyper-charged consumption is even starting to lower our quality of life. According to the United Nations, 9 out of 10 people breathe polluted air every day.
Hence the need for a new economy, a circular one.
Unlocking new potential
A linear economy focuses on the build-use-discard approach, but a circular economy taps into a reuse and recycle system.
It’s not just about producing and consuming less but also producing and consuming in a smart way so everyone can benefit from our shared resources in a sustainable way.
The circular economy unlocks the potential of our resources through innovative business models, leading to sustainable solutions that transform everyday life.
Here are five ways the circular economy can help companies grow, reduce costs and innovate.
1) Design for the Environment
When developing new products, try to make them energy efficient and longer lasting. At the same time, use standardized components that are easy to disassemble, repair, recycle and upgrade.
2) Service and Trade
Create contracts based on service instead of selling. With trade-in programs that extend use of the product with customers and secondary markets, this shifts the transactional purchase of a product to a long-term relationship with customers.
3) Repair parts and products
Before throwing a product away, consider repairing it. Logistics companies like UPS have critical parts fulfillment networks that can deliver parts same or next business day so service technicians can make on-site equipment repairs.
4) Enable easy returns
Easy returns are not only convenient for your customers but often allow your business to quickly understand the reason for the return. This information can help you decide whether to resell an item, repair it or dispose it before it leaves the customer’s hands.
5) Resell returns
Companies like Optoro help optimize returns so your business minimizes financial loss.
They route returns and excess inventory to secondary markets where it can be resold, donated or recycled.
While the world is moving fast, slow down and look at your traditional business processes through a circular lens.
We find innovation and opportunity in unexpected places, which might help you rethink your relationship with customers, suppliers and the environment.
Doing good is also good business.