GREENLANDSCAPE [ INSIGHT ]
by Evgeny Grigul Co-Founder and COO, Virto Commerce 800-980-5288 | media@virtocommerce.com
Transitioning to a Circular Supply Chain
Shifting from a linear to a circular supply chain model is not a challenge of the distant future but a pressing matter for supply chain professionals around the world.
Invest in adaptability from the start. New models will emerge on the basis of a circular economy. These models can evolve in unexpected ways since the circular economy is still in its infancy. To meet the unforeseen challenges posed by circular models, invest in the adaptability of your solutions from day one. You need the ability to innovate and easily adapt your technologies to rapidly changing market conditions and business scenarios at predictable costs. Here are three strategies to ensure your tech stays relevant years down the line: 1. Design logistics work ows using modular principles, so parts of the process such as repair handling or returns are independent and can be updated separately. 2. Prioritize tools that separate business logic and interface layers, so you can react to new legislations faster and make updates without disrupting core operations. 3. Track product lifecycle metrics to build feedback loops that inform design, packaging, and inventory forecasting. For example, if returns spike due to damage in transit, you can adjust packaging speci cations for better durability. Moving to a circular model requires innovative approaches and adaptable solutions. Fortunately, supply chain professionals already have the necessary tools on hand.
Set new benchmarks for customer- centricity. In a traditional linear economy, the last touchpoint for customer experience is often limited to purchasing a product, leaving a review, or, in some cases, returning a product. That is it. In a circular economy, however, customer experience extends beyond the traditional model, and the product’s lifecycle can expand, encompassing additional repair services, possible lifetime maintenance service subscriptions, recycling, and so much more. To extend customer experience beyond the purchase, companies must develop post-purchase service work ows, such as automated Return Merchandise Authorization (RMA) systems integrated with customer pro les and offer real- time noti cations on repairs and logistics through customer portals. Circular models present a new approach to customer experience— the experience of long-term product ‘ownership.’ By unifying the ‘ownership’ experience, from purchase to repair to renewal to disposal, supply chain managers have a chance to set a whole new standard for customer experience and increase customer loyalty.
As global businesses begin to adjust to the new circular paradigm—where ‘make- use-dispose’ no longer applies—supply chain managers who orchestrate complex coordination among stakeholders emerge as drivers of value and innovation. These tips will help ensure a smooth and future- proof transition to a circular model through the right technology. Take advantage of marketplace technologies, with the right capabilities. If you worry about the lack of adequate technologies designed to support circular supply chain management, rest assured that this is not the case. In fact, circular models somewhat resemble marketplace mechanics, and service marketplaces in particular, with numerous stakeholders— multiple vendors, buyers, and marketplace owners or operators. When adopting a marketplace model, invest in systems that support role- based access control, so stakeholders see and interact only with the data and tools relevant to their role. For example, a logistics partner should not edit product listings. Pay attention to product ownership tracking and service history features, which are essential for repair and return ows.
28 Inbound Logistics • November 2025
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