1
Individual Assignment: Thoughts On Circular Economies In Contemporary Supply Chain
Management
Brennan J. K. Mason
LOGT 4200: Logistics, Transportation And Distribution
March 31st, 2020
2
Abstract
This paper will analyze an article by Morgan Forde entitled “Gartner: Circular supply chain
investments must focus on reverse logistics”. This essay provides a brief synopsis of the major
topics discussed and points asserted within this article. Here, the author aims to identify and
summarize the critical “take-aways” from this article. These “take-aways” connect to the broad
themes of sustainability, ethics, risk and technology. This essay then goes on to provide an
evaluation of the article’s effectiveness based on a specific set of criteria. These criteria include
fairness, logical argumentation, depth of explanation, and credibility/accuracy, among others.
Moreover, the author then discusses his personal feelings/opinions regarding the article and
elaborates on the major premises dissertated within the article. Overall, the author draws the
conclusion that this work possesses a high degree of merit and conveys important considerations
in relevance to supply chain management.
3
Introduction
This critique is based upon an article entitled “Gartner: Circular supply chain
investments must focus on reverse logistics”, written by Morgan Forde. In this piece, the author
focuses on the notion of circular economies and discusses its linkage to supply chain
management. More specifically, this article asserts that circular economies will be prevalent in
the supply chains of the near future. However, the author argues that successful execution will
rely upon the utilization of digital technologies and a heightened focus on reverse logistics. The
author also touches upon the risks and benefits that connect to circular supply chains. Overall,
this article imparts meaningful information for supply chain management professionals to
ponder, and does so in an effective manner.
Summary
Firstly, the primary concept conveyed within this article is that of the circular economy,
and how conversion to this model is becoming a prevalent notion within modern supply chain
management. This article describes the circular economy as “a model that focuses on the reuse of
materials to minimize waste and natural resource consumption” (Forde, 2020). Moreover, this
article indicates an amplification in the prevalence of circular economies through citing that
“Seventy percent of supply chain leaders are planning to invest in the circular economy in the
next 18 months” (Forde, 2020). Furthermore, the author proclaims that the conversion to circular
economies will be widespread through mentioning Gartner’s prediction that “circular economies
[…] could replace traditional linear economies within the decade” (Forde, 2020). This connects
to the intertwined themes of ethics and sustainability, particularly in relation to the environment.
4
The premise of the circular economy serves as a tool to reduce waste and minimize the
environmental impacts of business operations, and thus carries ethical intentions through
supporting sustainability practices.
Moreover, the second major point asserted within this article is that circular economies
carry both risks and benefits. Some benefits of the circular model are quite obvious – through
implementing initiatives that promote the reuse/repurposing of materials, a colossal amount of
waste is eliminated/diverted from landfills. Therefore, circular economies can play a large role in
addressing our planet’s environmental crisis and increasing the long-term viability of the Earth.
Moreover, this article also points out that circular economies address the growing pressures from
consumers and governments/regulatory bodies to shift towards more environmentally-conscious
systems. Furthermore, this article mentions that the circular economy model “presents an
opportunity for positive economic growth combined with positive environmental social impact”
(Forde, 2020). However, a number of risks arise from circular economy conversion as well. For
example, circular economies stimulate an intricate “ecosystem of materials” (Forde, 2020),
which can present challenges from a procurement perspective. This idea connects to the theme of
supply chain risk/risk mitigation, which is extremely prevalent in current times.
Furthermore, the third essential idea expressed within this article is that the conversion to
circular economies must be supported by technological tools and reverse logistics in order to
optimize the likelihood of success. For example, this article asserts that technologies such as
analytics, 3D printing, Internet of Things and machine learning can aid in the enhancement of
“visibility and decision making about raw materials and service channels” (Forde, 2020).
Furthermore, this article argues that a heightened focus must be devoted to reverse logistical
processes in order to attain circularity. The idea of circularity naturally involves an expansion in
5
the reverse flows of the supply chain. Thus, removing waste from the returns and material
recycling processes is critical in order to facilitate optimized circularity. This idea relates
primarily to the theme of technology within supply chain management.
Evaluation
My evaluation of this article lies upon multiple criteria. These criteria include:
fairness/presence of bias, logical argumentation, relevance to current trends/real-world issues,
the provision of examples, credibility/accuracy, and the sufficient explanation of key concepts.
Firstly, this article seems to provide a relatively fair/unbiased portrayal of circular economies.
The article construes an impartial position through recognizing both the benefits and the
risks/challenges that stem from circular economies. This unbiased standpoint is further
exemplified by the article’s usage of data that includes a large sample size from a broad spectrum
of companies. More specifically, this article is predominantly based upon a study conducted by
Gartner that surveyed “1374 leaders across industries including healthcare, logistics and retail”
(Forde, 2020). In connection, this article employs the use of statistical facts rather than rhetoric
or fallacious argumentation to convey its points. Thus, this article is based on a solid foundation
of logic, and can be classified as a cogent inductive argument. Additionally, this article relates
directly to a multitude of current trends/real-world issues. For example, as aforementioned, this
article links to the themes of sustainability, ethics, risk and technology. In recent times, all of
these topics have become prevalent in supply chain management and in society as a whole.
Particularly, the theme of supply chain risk has been thrust into the spotlight due to the rise of the
COVID-19 pandemic. Additionally, this article provides a tangible example of its assertions.
More specifically, the article cites the Ikea/Optoro case as a real-world illustration of circular
6
economy execution facilitated through technologies such as machine learning. Furthermore,
embedded within this article are an abundance of additional links that provide the reader with
opportunities for further research. In total, there are 8 links that direct the reader to additional
resources. In connection, these links speak to the accuracy/authenticity of this article through
drawing upon a variety of credible sources to backup its assertions.
In terms of shortcomings, the article could’ve provided elaboration and greater detail in
regard to a few key topics. Most prominently, I would’ve liked a broadened explanation and
deeper analysis regarding the term “ecosystem of materials”, and the risks/drawbacks that stem
from this concept. I believe this would’ve contributed greatly to my overall understanding of the
risks/challenges associated with circular economies. Additionally, I believe that further
commentary regarding exactly how digital technologies, such as 3D printing and machine
learning, can aid in the facilitation of circular supply chains would’ve reinforced the author’s
arguments.
Response
From a personal standpoint, this article evokes emotions of hope and excitement within
me. I am very interested in the notion of sustainability – this is a field that I aspire to develop a
specialization in, as I feel that it would allow me to make meaningful contributions to society.
Consequently, I find the concept of circularity within supply chains to be very intriguing – in a
metaphorical sense, it seems like a method of “reincarnating” products/materials through reusing
and repurposing components that would otherwise become waste. I agree with the proposition that
circular economies will be beneficial to our planet. In fact, I see all corporate sustainability
7
practices as critical opportunities to minimize the environmental impacts of our society, as
companies contribute immensely to environmental degradation. For example, “just 100 companies
have been the source of more than 70% of the world’s greenhouse gas emissions since 1988”
(Riley, 2017). Additionally, “industrial pollution accounts for approximately 50 percent of the
pollution in the US” (“Eco Coalition”, 2010). These statistics depict the enormous impact of
organizations upon the environment – circular supply chain practices serve as a tool to diminish
the deterioration stimulated by businesses.
Moreover, I also agree with the assertion that technology can support the transition to
circular
economies
and
sustainable
practices.
I
believe
that
correlation
between
digital/technological strategies and circular strategies provides an excellent route of action for
organizations looking to optimize their sustainability initiatives. For example, from a reverse
logistics perspective, R&S (Routing & Scheduling) systems can facilitate route optimization and
hence decrease emissions stemming from the returns process. Furthermore, analytics and big data
can be capitalized upon in efforts to identify areas of waste. Other factors that I believe may aid in
the implementation of circular practices include design/engineering considerations. I believe that
firms should be mindful of circularity/sustainability during the initial product design processes
through catering to recycling/reuse and increasing durability. A perfect example that comes to
mind is earphones – I have owned at least 30 pairs throughout my life, as they continuously break.
Through designing earphones in a more durable fashion or utilizing recyclable materials, firms
could divert an immense amount of electronic waste from landfills. Furthermore, other concepts
that may contribute to circular economies include repurposing, repair, allowing for upgradability,
and eliminating planned obsolescence (Buhl & Harvey, 2019). Overall, I believe it is of the utmost
importance and urgency to take measures that address the environmental crisis we find ourselves
8
in. Additionally, I believe that it is important to use all of the tools at our disposal, including
technological tools, to facilitate execution.
Conclusion
Cumulatively, this article revolves around our generation’s most pivotal and pressing
issue – sustainability in regards to the environment. Furthermore, this article provides a feasible
strategy that may aid in solving this issue (circular economies/supply chains), and presents
advice regarding successful implementation of this strategy. Therefore, within this article lies a
tangible route of action that organizations can take in order to enhance the viability of this planet.
As such, this article carries monumental significance in relation to supply chain management and
civilization as a whole. Furthermore, although this article bears some minor weaknesses in terms
of explanatory depth, it also possesses a multitude of strengths from an evaluative perspective,
and aligns with my personal opinions. Therefore, I believe that the ultimate importance of this
article is tremendous, and that its overall success is immense.
9
References
Buhl, T. & Harvey, T. (2019). Three best practices for transitioning to a circular economy.
Retrieved March 25th, 2020, from
https://www.supplychainquarterly.com/topics/Strategy/20191214-three-best-practicesfor-transitioning-to-a-circular-economy/
Eco Coalition. (2010). Retrieved March 26th, 2020, from
http://ecocoalition.org/air-pollution-caused-by-industries/
Forde, M. (2020). Gartner: Circular supply chain investments must focus on reverse logistics.
Retrieved March 25th, 2020, from
https://www.supplychaindive.com/news/circular-supply-chain-reverse-logistics/573078/
Riley, T. (2017). Just 100 companies responsible for 71% of global emissions, study says.
Retrieved March 26th, 2020 from
https://www.theguardian.com/sustainable-business/2017/jul/10/100-fossil-fuelcompanies-investors-responsible-71-global-emissions-cdp-study-climate-change