Using Circular Economy and Circular Supply Chain Principles in Packaging

Using Circular Economy and Circular Supply Chain Principles in Packaging

Lisa M. Ellram
University Distinguished Professor
Rees Distinguished Professor of Supply Chain Management
Farmer School or Business, Department of Management
Miami University

Wendy L. Tate
William J. Taylor Professor of Business
Cheryl Massingale Faculty Research Fellow
University of Tennessee

As companies set goals to reduce GHG emissions and their environmental footprint, single-use packaging consumption and use should be considered. Single-use packaging is one of the largest sources of resource consumption waste today. The current linear-dominated economy relies heavily on single-use packaging, producing it at a low cost and leaving it up to the consumer to determine what happens to the packaging after it is used. In most cases, there is no plan for reuse, and once the product is sold, its packaging is no longer on the producer’s radar. Reusing, recycling, or repurposing is at the purview of the customer, whether B2B or B2C.

The Circular Economy

A circular economy, or circular supply chain, design process considers all aspects of the lifecycle. It aims to minimize resource use and maximize reuse at every step of the product lifecycle. Circular supply chains foster durable design approaches and reutilization practices, minimizing and extending the use of materials and reducing waste.

Applications of Circular Packaging

Researchers explore how circular supply chain concepts can be applied by different types of companies and with both B2B and B2C packaging. A detailed review of the 10 Rs of circularity is included with examples of how they could be incorporated into circular supply chains, as well as some of the challenges associated with each of the ten R-imperatives.

While many of the benefits of circular packaging are environmental, there are also potential monetary and customer loyalty benefits. A list of both potential benefits and disadvantages is included in the report.  

Where to begin?

It’s important to consider where your organization is today. The first step is to rethink and refuse packaging. This is true for existing products but even more so for new products. Packaging design should be part of the product design process, which involves designing out packaging waste from the beginning. A full list of considerations for where to start the circular packaging journey is included in the report available for CAPS members.

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CAPS is a B2B nonprofit research center serving supply management leaders at Fortune 1000 companies. CAPS Research inspires leaders with profound discovery and executable strategies to shape the future of supply management. Research reveals the destination, benchmarking charts the course, and networking creates the path to transformation. All CAPS offerings are sales-free, bias-free, and practitioner-driven. CAPS was established in 1986 at the W. P. Carey School of Business at Arizona State University in partnership with the Institute for Supply Management. Learn more at www.CAPSResearch.org.

About the author

CAPS Research