KEY STEPS TO A CIRCULAR SUPPLY CHAIN 5 CHAIN
reducing waste generation or designing for reuse,” he says. “While all have a place in the transition to circular supply chains, to tweak the three Rs: Recycling is good, Reuse is better, and Reduction is best— for both business and the environment,” O’Donnell adds. 2 CREATE ‘VIRTUOUS LOOPS’ A foundational concept of circularity is “beginning with the end in mind,” one of Stephen Covey’s habits of highly successful people. Companies that successfully pursue a circular supply chain create “virtuous loops” as early as possible, emphasizing network optimization, tighter supply chains, more resource-efficient buildings, and more efficient transport logistics. “While it’s helpful to harvest the quick wins with clear ROI, don’t stop there,” O’Donnell advises. “Take a holistic view of the system and design in circularity from the start. Consider capital investment, procurement, and
“You have to know where your excess lives,” Petit says. “That includes customer returns sitting in homes or warehouses, aging inventory in retail backrooms, marketing samples, and leftover materials from events and pop-ups.” For instance, one of LiquiDonate’s partners, Room & Board, discovered that it could redirect items previously considered “un-donatable”—such as retired store fixtures and incomplete pieces—to nonprofits, effectively reducing waste and supporting community needs. Shippers should also evaluate how recycling is prioritized, and whether a better solution exists. “Recycling is part of the solution and certainly a better pathway than landfilling or incineration without energy recovery,” notes Kevin O’Donnell, vice president of corporate sustainability at Southern Glazer’s Wine and Spirits, the largest wine and spirits distributor in the United States.
“But recycling still only recovers pennies on the dollar compared to
long-term business planning through a circular lens.” Changing the company mindset to prioritize circular solutions is essential. For instance, it’s a mistake to assume that donation is extra work. “When done right, donation is easier than liquidation and more aligned with your brand values,” Petit says. Disposal is often the default because it’s already built into existing systems. “To shift to a circular supply chain, donation and reuse need to be the default, not the exception,” Petit says. “That could mean flagging products for donation during return intake or integrating donation logic into reverse logistics systems. “We’ve seen partners reroute returns
Room & Board, a retailer specializing in modern furniture and home decor, is committed to using 100% sustainably sourced wood. It makes more than 90% of its products in the United States, supporting local economies and reducing transportation-related emissions.
28 Inbound Logistics • June 2025
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