Now nearly all large product-based companies say they've implemented circular supply chains for recovery and recycling.
But despite the enthusiasm, too many programs remain “skin deep,” failing to capture the full potential of the approach. It’s time to come full circle—transforming supply chain operations and company cultures to build an ecosystem of partners, suppliers and markets that capitalize on circularity.
Although adoption of circular as a business strategy has hit barriers, the barriers are quickly falling. That’s partly thanks to an inflection point that’s been reached: Digital technologies such as analytics, IoT and sensors are eliminating hurdles when it comes to operational issues like sorting materials and recapturing them. Materials can be traced. Loops can be closed.
Accenture Strategy research shows that digital is a top enabler cited by executives. Ninety percent of companies surveyed believe digital technology has influenced their ability to implement operational changes to deliver circular supply chains, product life extension or waste to value capabilities.
So there are no longer “excuses” for not acting. Except one: According to our research, “lack of leadership/sponsorship” is cited as the top barrier for going circular. And leadership influences other “soft” issues like corporate culture as well.
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