Consumers, especially in the Western world, are looking for clean-label products. Circular economy is a key enabler for environmentally friendly products, and reverse logistics, as a method to integrate the consumer in the upcycling and production cycle, is reinforcing this potential marketing aspect.
Reverse logistics is the process of collecting and aggregating products, components, or materials at their end of life for reuse, recycling, and returns. Reverse logistics plays an important role in the process of companies aiming to transition to a circular economy.
The availability of raw materials is at risk, with geopolitical and economic stress. Volumes and prices are fluctuating even more because of the effects of COVID-19. Some materials are facing scarcity issues, such as copper and fish oil, and companies may face several hurdles, such as uneven quality and quantity in return loads. Cost challenges are related to transport costs that may be higher than the residual value of the transported goods. Circular economy and reverse logistics can help organizations solve these issues and mitigate the risk for supply security.
The improvement of supply chain management, especially with digital tools such as artificial intelligence (AI), tracking capabilities, and digital twins, allows for the easier management of complex logistics flows, and reverse logistics is becoming more possible with the help of these technologies.
This study highlights the key challenges faced by different industries to manage reverse logistics and adopt more circular models and solutions that leading participants are taking, in addition to leveraging the opportunities opened from this trend for the development of new technology solutions, logistics services, and business models.
Reverse logistics is the process of collecting and aggregating products, components, or materials at their end of life for reuse, recycling, and returns. Reverse logistics plays an important role in the process of companies aiming to transition to a circular economy.
The availability of raw materials is at risk, with geopolitical and economic stress. Volumes and prices are fluctuating even more because of the effects of COVID-19. Some materials are facing scarcity issues, such as copper and fish oil, and companies may face several hurdles, such as uneven quality and quantity in return loads. Cost challenges are related to transport costs that may be higher than the residual value of the transported goods. Circular economy and reverse logistics can help organizations solve these issues and mitigate the risk for supply security.
The improvement of supply chain management, especially with digital tools such as artificial intelligence (AI), tracking capabilities, and digital twins, allows for the easier management of complex logistics flows, and reverse logistics is becoming more possible with the help of these technologies.
This study highlights the key challenges faced by different industries to manage reverse logistics and adopt more circular models and solutions that leading participants are taking, in addition to leveraging the opportunities opened from this trend for the development of new technology solutions, logistics services, and business models.
KEY ISSUES ADDRESSED
- What are the key challenges and opportunities to shift from conventional to reverse logistics?
- What are the solutions and opportunities to overcome these challenges?
- What are the emerging and innovative logistics models for the circular economy?
- What are the key aspects organizations must consider moving toward a circular economy model?
Table of Contents
Trends Strategic Imperative
Executive Dashboard
Trend Opportunity Analysis
Growth Opportunities Analysis
Next Steps
Appendix
