up on the cutting room oor, as they are in pieces too small to be used in production. And because most shoes consist of numerous parts cemented together, only about 5% are recycled at the end of their life, says HILOS. A SHOE-IN By using additive manufacturing, or 3D printing, along with materials that are 80% recycled and 100% recyclable, and by reducing the number of parts in each shoe to just a handful, HILOS aims to change this. In tests, HILOS’
shoes reduced carbon emissions by 48% and water usage by 99%, when compared to industry competitors’ production methods, the company says. “We’re writing a new rule book,” Stahl says. Brands also can use the platform HILOS has developed to create their own designs in the same way they’ve been used to, and ful llment can occur in 72 hours from “click to ship,” Stahl says. 3D printing offers an “incredible “opportunity to reinvent global supply chains,” he adds. CIRCULARITY AND COMMUNITY As circular operations become more prevalent, more companies will work with each other, Gagel predicts. If a product is returned to a company that can’t use the plastic within it, that company can forward it to another organization that can. While intellectual property and other challenges need to be addressed, “multiple circular economies” will be the next iteration, he adds. Along with reusability and recyclability, the impact of returned items on society will gain more attention. “It’s like Expedia for the circular economy,” says Shawn Stockman, vice president of sustainability solutions with OnePak, whose online logistics platform, ReturnCenter, connects shippers, receivers, and carriers. Many organizations currently consider three to ve years the normal life for a laptop. Once that time frame passes, they often purchase new ones. However, many computers can perform for another several years. When donated and refurbished, the computers may help individuals who otherwise wouldn’t have access to technology to nd a job, or access medical care. Shifting from linear to a circular supply chain operation often requires rethinking your organization’s approach to business overall, and many functions within it. These guidelines can help. Enlist partners. You’re changing whole systems, so it’s not just a procurement or supply chain problem,
Its design, development, and in nite restock platform enables brands to launch 3D-printed footwear lines. HILOS’ goal is to “build a creative economy without waste,” says Elias Stahl, co-founder and CEO. Currently, many footwear and apparel companies overproduce by 20%. The reason? It can take 12 to 18 months to bring an item to market. Brands often over-produce rather than risk missing sales. What’s more, much of the material used to make apparel and shoes ends
Seventy-four percent of supply chain leaders expect profits to increase between now and 2025 as a result of applying circular economy principles, according to a recent Gartner survey. On average, supply chain organizations have been applying circular economy principles for three years to approximately 16% of their product portfolio. “There is still such a great deal of untapped potential in the circular economy,” says Sarah Watt, VP analyst with the Gartner Supply Chain practice. “Supply chain leaders can use the inflationary environment as a catalyst to reshape their relationship with materials. Instead of losing materials out of the economy in the form of waste, the circular economy helps capture value.” Benefits and Barriers of a Circular Economy The top three circular economy benefits that have been realized in previous years are: • Minimizing negative environmental impacts • Shorter and compact supply chains • Enhanced customer insights Common observed barriers to applying circular principles include the application of technology to advance circular economy activities, partnering with stakeholders and measuring the results of circular economy approaches, according to the survey. The survey shows that respondents are making changes to the supply chain including integrating circular economy products into the planning process (54%), adding new capabilities to existing manufacturing sites (42%), and adding new locations for repair/ remanufacturing and waste management which are company owned (36%). Looking out over the next three years, the focus will increase on procurement, with buyers being incentivized to purchase circular materials (41%). Circular Economy as Profit Center
34 Inbound Logistics • June 2023
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