circularity practice areas. He also sees increasing investment from venture capital and private equity in scalable, innovative solutions. Working collaboratively with upstream and downstream partners can unlock powerful economies of scale. “That’s when things start becoming profitable,” Holm says. “Working with both upstream and downstream partners uncovers real opportunities.” Everyone in the product’s journey must have strong incentives. “Third-party supply chain companies need to be compensated to prevent damage and maximize returns,” Casavant says. “Customers need incentives, such as deposits or brand rewards, to care for and return products.” 4 TRACK IMPACT AND ENSURE COMPLIANCE As with all aspects of the modern supply chain, data is essential. Modeling and measuring ROI is crucial. “Businesses need to model break-even points for recovery, measure each link’s performance, and continuously adjust incentives and messaging,” Casavant says. “When done well, the payoff is significant, with increased brand loyalty, higher customer lifetime value, and longer-lasting engagement.” In the case of donations, traceability is key for ESG reporting and tax benefits. “Donation is great for ESG metrics, community impact, and your tax position, but only if it’s traceable,” Petit says. “Ensure your systems, or your partners, provide SKU-level reporting, donation receipts, and audit- ready documentation.” Cutting corners on traceability and automation is costly long-term. “The upfront investment is often less expensive than the lost inventory, assets, or credibility when you can’t prove what happened,” Casavant warns. “Circularity adds complexity in terms of more touchpoints and potential disputes. That’s where traceability pays off: It reduces manual work, smooths returns, and speeds issue resolution.”
At Southern Glazer’s Wine & Spirits, a comprehensive supply chain strategy emphasizes waste reduction, resource optimization, and sustainable logistics.
to schools, shelters, and mutual aid organizations just by tweaking existing standard operating procedures,” she says. Sticking with the familiar can be a barrier. For example, transitioning to circular packaging—durable, reusable, returnable, and refillable—is an often- overlooked but vital step. “Circular packaging costs more upfront but provides rapid ROI and significant environmental gains,” O’Donnell says. “That’s not to say any of this is easy. There’s often more talk than action—a circularity promise versus reality gap.”
3 CONSIDER—AND
INCENTIVIZE—YOUR
PARTNERS Shippers can’t navigate a circular supply chain alone. Partners can help make the process smoother and more scalable. “This can’t all fall on your supply chain team,” Petit says. “You need platforms that automate everything from nonprofit matching to freight coordination to real- time reporting.” O’Donnell points to the Ellen MacArthur Foundation as a key thought leader in the space and says major consultancies are building out
June 2025 • Inbound Logistics 29
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