F or much of the past century, the concept of “planned obsolescence”—designing a product so it becomes outdated or useless within a speci c time—has in uenced product design. The concept also impacted supply chains, many of which were created to be linear: Resources are extracted and used to create materials that go into prod- ucts, which are distributed and, for the most part, eventually disposed of. This thinking has been steadily shifting. “We’re aiming for planned longevity. It’s the opposite of planned obsolescence,” says John Gagel, chief sustainability of cer with Lexmark. Instead of considering disposal the only option for products at the end of their lives, the products become a source of materials. Lexmark has been applying circular principles for close to 30 years. To do this, the company has based its product development on three pillars: sustainable design, the ef cient use of materials, and responsible reuse or recycling. “You have to intentionally design for reuse and durability,” Gagel says. For instance, Lexmark speci es the plastic to be used in its laser cartridges
To promote sustainability, Lexmark oers a cartridge collection program that provides a free and easy way for customers to return its cartridges for reuse and recycling.
2022 and 2025 by applying circular economy principles. As the survey indicates, a circular supply chain approach can help companies enhance both their environmental impact and their bottom line. “The linear economy that extracts virgin material creates an enormous amount of waste,” says Hernan Saenz, head of global performance improvement practice with Bain. In contrast, a circular supply chain can reduce waste and help manufacturers diversify their sources of supply, as used products become a source of materials. Shifting to a circular operation also may help a company gain market share or offer additional services. For example, along with selling products, a company may offer repair services. DURABILITY, STYLE, AND MODULARITY Subscribers to Fernish gain access to furniture and décor—from bar stools to nightstands to sofas—for the amount of time they need it. The company is in its fourth year of operation. While it’s still early, indications are that when the company is able to purchase durable, stylish items that can remain in circulation for between about four to seven years, it’s similar to selling the items several times over, says Kristin Toth, president and chief operating of cer of Fernish. As a result, an essential element for sustained performance is identifying products that can hold up through several customers.
Lexmark currently averages about 39% post-consumer recycled plastic in its printers, with a goal of hitting 50% by 2025. Not only has this saved the company money, but remanufacturing also boosts the company’s supply chain resilience. Like Lexmark, a growing number of organizations are incorporating circular supply chain approaches within their operations. On average, supply chain organizations have been applying circular economy principles for three years to approximately 16% of their product portfolio, nds a recent Gartner survey ( see sidebar, page 34 ). Nearly three-quarters of supply chain leaders expect to boost pro ts between
and established a return process for them. When they’re returned, as about 40% are, Lexmark can
ef ciently determine if it will be able to remanufacture the entire cartridge and still meet engineering speci cations. Some materials, like resin, can be reused almost in nitely. In some cases, the cartridges fail to meet design requirements. When that occurs, components within the cartridge typically become a source of raw materials, including plastics, metals, and components. When Lexmark rst began to apply circular concepts, Gagel worked with the engineering team to experiment with different ratios of new and reused resin. They started with a ratio of 95% new and 5% reused. When that proved viable, they moved to 90% new and 10% recycled, and so on. “You have to be willing to try something new,” he says.
Xerox and Close the Loop's Recycling and Returns Program aims to achieve zero waste to landfill by collecting and recycling used imaging supplies.
June 2023 • Inbound Logistics 31
Powered by FlippingBook