{"id":5606,"date":"2020-05-10T11:04:19","date_gmt":"2020-05-10T09:04:19","guid":{"rendered":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/?p=5606"},"modified":"2020-05-10T11:09:25","modified_gmt":"2020-05-10T09:09:25","slug":"supply-chain-2","status":"publish","type":"post","link":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/2020\/05\/10\/supply-chain-2\/","title":{"rendered":"Are You Ready to Join the Circular Supply Chain?"},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">It may be time to revisit how your company produces and delivers products as consumers and retailers become more environmentally aware and shift to a circular supply chain.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">According to National Geographic, about 8 million pieces of plastic find their way into the oceans each year, which is the equivalent of putting five garbage bags full of trash on every foot of coastline around the world. Millions of animals are killed from entanglement or starvation because of microplastics, which are ingested by fish and block their digestive tracts or pierce their organs. A new Scientific Reports study even suggests that the fish that end up on your dinner plate could expose humans to microplastics and their harmful toxins, such as heavy metals and organic pollutants.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Plastic is just one type of waste that, if not recycled, reused, or remanufactured, ends up in landfills and pollutes the air, land, and water. Unfortunately, developing recycling initiatives, managing groundwater contamination, and complying with environmental regulations drains a lot of cash from municipalities and taxpayers. The good news is that companies and consumers are becoming more environmentally aware and shifting from a traditional linear supply chain to a circular one. By reducing the demand for manufactured products, we can reduce the toxicity and volume of waste that end up in landfills.<\/span><\/p>\n<h5 style=\"text-align: justify;\"><strong><span style=\"color: #0000ff;\">The Circular Economy<\/span><\/strong><\/h5>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">The circular economy attempts to minimize the input of resources and the generation of waste leaking into the environment. The goal is to reduce the number of primary raw materials used and get as much out of them as possible to prevent waste. Then we look to recycle, remanufacture, or reuse the product.<\/span><\/p>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"color: #0000ff;\">\u00a0\u00a0\u00a0 Recycle: Collect materials so they can be used to manufacture new products.<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"color: #0000ff;\">\u00a0\u00a0\u00a0 Remanufacture: Take an existing product that has ceased to function from wear and tear or damage and refurbish or replace its components, and then reintroduce it into the supply chain.<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"color: #0000ff;\">\u00a0\u00a0\u00a0 Reuse\/resell: Transfer or sell products from one user to another.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">The circular economy will change many things for companies in the supply chain. Companies need to revisit how they produce and deliver products as retailers and consumers demand more environmental awareness.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Four Things to Consider Before Kicking Off Your Sustainability Project<\/span><\/p>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"color: #0000ff;\">\u00a0\u00a0\u00a0 Circular inputs: How can you change your materials to ones that are renewable or recyclable, and how can you use fewer materials in the initial manufacturing process?<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"color: #0000ff;\">\u00a0\u00a0\u00a0 Product design: How can you design products to last longer or perhaps to be used in a sharing system? How can you design products that can be easily disassembled at the end-of-use stage without expending immense labor or energy?<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"color: #0000ff;\">\u00a0\u00a0\u00a0 Process design: When looking at your processes, how can you make the product with renewable or recycled materials?<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"color: #0000ff;\">\u00a0\u00a0\u00a0 Circular flows: At the end of use, how do you recover materials or products so they can be used again?<\/span><\/li>\n<\/ul>\n<h5 style=\"text-align: justify;\"><strong><span style=\"color: #0000ff;\">Business Models Enabling Circular Supply<\/span><\/strong><\/h5>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Many new business models are emerging to manage circular flows. In South Africa, for example, where unemployment is extremely high and there are no sophisticated recycling services in place, people walk from housing complex to housing complex collecting plastic, paper, and glass, which they take to the recycling plants and are paid per ton. On a more global scale, Uber provides a platform to provide transportation only when it\u2019s needed. This model beats having a five-seat car in the garage that transports one person for an average of two hours per day. Companies that sell solvents as a service is another business model enabling circular supply. They can control the usage of the solvents, recover the remainder, clean it up, and reuse it for other purposes.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Flea markets and boot sales are still popular models for recycling and reusing goods. This concept of a \u201cmarket\u201d where people can go to buy and sell has led to companies such as eBay, Gumtree, Craig\u2019s List and Facebook community groups popping up to provide an online platform to do the same thing\u2014assist in the selling of previously owned goods.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Some retailers are attempting to reduce their packaging footprint. New Zealand supermarkets have started \u201cfood in the nude\u201d campaigns, whereby all their fresh produce is sold without packaging. South Africa\u2019s Pick n Pay is piloting a packaging-free shopping zone in their Cape Town location. The zone consists of dry goods such as baked goods, cereals, dried fruit, grains, ground coffee, nuts, pasta, and rice. Customers are encouraged to bring their reusable containers, or the store provides free paper bags and reusable containers that can be purchased. The absence of packaging means lower costs for the retailer as well as the consumer.<\/span><\/p>\n<h5 style=\"text-align: justify;\"><strong><span style=\"color: #0000ff;\">Enablers and Accelerators<\/span><\/strong><\/h5>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Enablers and accelerators are systems and technologies designed to recycle or remanufacture. Technologies such as 3D printing, big data, the Internet of Things, and different ways of thinking, like green chemistry, are just a few means of supporting a circular economy.<\/span><\/p>\n<h5 style=\"text-align: justify;\"><strong><span style=\"color: #0000ff;\">Start Your Journey<\/span><\/strong><\/h5>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">If you are planning a greener future, start by taking small steps in the right direction. As opposed to restructuring your entire business, start with short-term projects and reinvest the benefits into long-term wins. Consider developing a business model in which you take back and remarket your products. If you don\u2019t take back your goods, then you can\u2019t profit from the end-of-use stage. Designing smart goods that are environmentally friendly only to have other businesses benefit at the end of use doesn&#8217;t make too much sense. You can then decide whether to recycle, resell, or remanufacture your products.<\/span><\/p>\n<h5 style=\"text-align: justify;\"><strong><span style=\"color: #0000ff;\">Get More Value from Your Waste<\/span><\/strong><\/h5>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">What can you recycle from end-of-use products and waste along other points of the supply chain? If you are a food manufacturer, for example, are you using all your raw materials? Are there bits left behind that can be used as a by-product for another product? Perhaps another business in a different industry has a use for one of your by-products. The object is to try and use up as much of your raw materials as you possibly can so you can maximize profits and minimize waste.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">As an example, let\u2019s look at oranges. Two primary products exist\u2014the whole fruit and the juice of the fruit. However, there are many by-products from the orange that can be used or sold to other manufacturers.<\/span><\/p>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"color: #0000ff;\">\u00a0\u00a0\u00a0 Peel oil: Manufacturers use this for the production of various flavor compounds in the beverage, cosmetics, and chemical industries.<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"color: #0000ff;\">\u00a0\u00a0\u00a0 Essence oil: Flavor companies commonly use this to make mixtures for the food and beverage industry.<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"color: #0000ff;\">\u00a0\u00a0\u00a0 Peel: Pectin, found in the orange peel, is used as an ingredient in jam, marmalade, and jelly.<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"color: #0000ff;\">\u00a0\u00a0\u00a0 Citrus molasses: This is used in the production of animal feed pellets or as raw material for citrus alcohol via fermentation.<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"color: #0000ff;\">\u00a0\u00a0\u00a0 D-limonene: Found in the orange peel, this oil is used by the plastics industry as a raw material for resins and adhesives. It is also found in the electronics industry, where it is used as a solvent.<\/span><\/li>\n<\/ul>\n<h5 style=\"text-align: justify;\"><strong><span style=\"color: #0000ff;\">Get More Value from End-of-Use Products<\/span><\/strong><\/h5>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">What options exist for a product at the end of its use? Is it fit for reuse or resale? If it can\u2019t be resold, maybe it can be repaired, refurbished, or remanufactured.<\/span><\/p>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"color: #0000ff;\">\u00a0\u00a0\u00a0 Processing inputs: Look at your processing inputs, such as water and energy. Are you bringing them back into the process? If not, could you?<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"color: #0000ff;\">\u00a0\u00a0\u00a0 Waste consolidation: Could you consolidate your waste flows with other companies in the area? This will turn a cost into a revenue stream as you collect more waste volume, and by bailing it up, you would make it worth something to a waste buyer.<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"color: #0000ff;\">\u00a0\u00a0\u00a0 Offcuts: If you are in discrete manufacturing, what are you doing with your offcuts? Could they be used to build another product, or is there an opportunity to sell offcuts to other companies?<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Companies in the packaging industry are under heavy scrutiny, specifically plastics packaging manufacturers. These companies will have to look at alternate business models. With supermarkets promoting packaging-free shopping, packaging companies will need to find alternative ways to package or deliver their products. Consumers are becoming more and more aware of the hazards that come along with packaging, and it won&#8217;t be long before all products are sold without fancy packaging.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">All other supply chain companies should look carefully at their current business model and see if they, too, are under threat of extinction in a circular supply chain. If you think you are at risk, you may need to reinvent yourself. Professor Walter Stahel sums up the benefits of a circular economy when he said, \u201cThe goods of today become the resources of tomorrow at yesterday&#8217;s prices. So, let&#8217;s all do our bit to make this a reality.\u201d<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #0000ff;\"> By Barry Kukkuk, CTO, NETSTOCK<\/span><\/p>\n<p>Source: <a href=\"https:\/\/www.inboundlogistics.com\" target=\"_blank\" rel=\"noopener noreferrer\">https:\/\/www.inboundlogistics.com<\/a><\/p>\n<h3 style=\"text-align: center;\"><a href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/consultancy\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>CUT COTS OF THE FLEET WITH OUR AUDIT PROGRAM<\/strong><\/a><\/h3>\n<p><a href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/consultancy\/\"><img loading=\"lazy\" class=\"aligncenter wp-image-5377\" src=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria.jpg\" sizes=\"(max-width: 858px) 100vw, 858px\" srcset=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria.jpg 2000w, https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria-300x200.jpg 300w, https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria-1024x682.jpg 1024w\" alt=\"\" width=\"858\" height=\"572\" \/><\/a><\/p>\n<p style=\"text-align: justify;\">The audit is a key tool to know the overall status and provide the analysis, the assessment, the advice, the suggestions and the actions to take in order to cut costs and increase the efficiency and efficacy of the fleet. We propose the following fleet management audit.<\/p>\n<h3 style=\"text-align: center;\"><a href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/consultancy\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>FLEET MANAGEMENT AUDIT<\/strong><\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"<p>It may be time to revisit how your company produces and delivers products as consumers and retailers become more environmentally aware and shift to a circular supply chain. According to National Geographic, about 8 million pieces of plastic find their way into the oceans each year, which is the equivalent of putting five garbage bags&#8230;<\/p>\n","protected":false},"author":3,"featured_media":5607,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[18],"tags":[50],"_links":{"self":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/5606"}],"collection":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/comments?post=5606"}],"version-history":[{"count":3,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/5606\/revisions"}],"predecessor-version":[{"id":5612,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/5606\/revisions\/5612"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media\/5607"}],"wp:attachment":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media?parent=5606"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/categories?post=5606"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/tags?post=5606"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}