Logistics

Logistics: a key role for circular economic models

Managing the supply chain in a profitable and ecological way is fundamental for the circular economyThe circular economy is a restorative and regenerative economy. By maintaining the value of the products, materials and resources in the economy through smart product design, repurposing and/or shared use of products, it reduces the extraction of natural resources by using resources already present in the economy.. Circular logistics aims to optimise the management of material and product streams while reducing the environmental impact of its activity.

Principles of circular logistics

The following strategies integrate the circular economy into the logistics sector:

• Reducing distances travelled by goods transport vehicles, by optimising itineraries and favouring more efficient modes of transport in terms of energy (for example rail rather than road). Companies can also collaborate to optimise group transport, thereby reducing the number of journeys.
• Minimising single-use packaging and opting for reusable packaging reduces waste production and encourages end-of-life packaging returns to the companies that have produced it.
• Minimising product and raw material stocks helps avoid overproduction and reduce storage costs. Companies can also put in place repurposingRepurposing designates all operations by which substances, materials or products that have become waste are used again. and repairRepair is making a faulty product work again, allowing its use to be extended without the user parting with it, or with a view to reuseReuse designates all operations by which substances, materials or products that are not waste are used again in an identical way to their originally intended purpose. (donation, second-hand sale). systems to prolong the lifespan of products.
• Reducing the waste produced by the logistics activities by recovering it rather than sending it to landfill. Companies can put in place collection and sorting systems to separate recyclable materials and recoverable materials.
• Developing partnerships and collaborations between different parties in the logistics chain optimises material and product streams, reduces distances travelled and encourages the use of reusable packaging.

Find out more

Research report of LogiCE (NL) on Logistics in a circular economy [in Dutch].