Circular Economy: The change we need?

Yesterday, I went to the supermarket to buy some drink. When I bought it and read some product descriptions behind, To my pleasant surprise, I found that I would get some 10% back of what I paid if I returned it to the bottle-collector machine and I would also contribute to the environment by not throwing it in the garbage bin. It would be recycled. What a great thing, right? Just plain simple.

But is it? A big no. We don’t see this system at scale and not find it omnipresent in every aspect we wish it to see.

This is a nice rewarding feedback system where everyone is a win-win situation. If I give it back, the producer won’t have to make it all again, they can just recycle it and use it next time. For me, I will get some “money” back if I return it. So convenient! But, do you get anything for returning non-functional bulbs? Or electronics goods? Or plastic goods? Or clothes? No. Therefore, we let it rot or throw it away.

These two are prime examples of two different models of business. One is a Linear Model and one is Circular. The bulb example can be classified as a linear economy example whereas the bottle example is of the circular economy.

Linear Economy, as goes with the name — is linear. The raw materials are procured, Product is created, is shipped to a market, and sold. The lifecycle ends there. A company doesn’t think about what consumer do with it. Therefore, after extensive usage, the Only place that thing finds is — garbage bin.

The circular model extends the linear model. After selling the product, it is joined directly to the raw materials procurement stage. Since it creates the circle and hence the name.

However, you wouldn’t see the examples of the circular economy much.

The question is, WHY?

There are several reasons. The biggest reason is supply chain management. How to control returns? Where to have garbage warehouses? Where to set the refinement centers where we can again turn them to usable raw materials? What kind of extra workforce requirement we will have to tackle the last stage(connection of selling goods and raw materials procurement)?

However, sometimes for organizations, the last process becomes tedious and less rewarding than procuring the new raw materials. Hence they don’t opt this and let things go in linear fashion.

Who can help here?

This is where the government can come in action. They can give some rewards to businesses to establish a circular economy. By this government will also have an advantage of handling less garbage. This way, all the dimensions of product Management and usage will be in win-win condition.

This also follows the human tendency of finding rewards in everything we do. It saves a great effort in the management of the waste and also helps the cause of having a better environment for the future.

So, let’s create the opportunities and find a place in the circular economy. Give a home to an idea!