--- title: Circular Supply Chains description: Circular supply chains are trending, let us tell you the reasons and why they are the best option for companies. Keep reading! image: https://blog.solistica.com/hubfs/Fotos%20Blogs%20Enero%202022/Featured-Cadenas%20de%20suministro%20circulares.jpg --- - [LinkedIn](https://www.linkedin.com/company/solistica/) - [Youtube](https://www.youtube.com/channel/UCiuUJkd2RoOIpYDLkAUAsUQ) - [Twitter](https://twitter.com/Solistica_3PL) - [SHIPPERS](https://solistica.com/en/clients/) - [CARRIERS](https://solistica.com/en/carriers/) - [CONTACT US](https://solistica.com/en/contact-us/) - EN - [ES](https://blog.solistica.com) [![Solistica](https://blog.solistica.com/hubfs/logo-solistica-by-traxion-v2.svg "Solistica")](https://solistica.com/en/) - [SOLUTIONS](https://solistica.com/en/solutions/) - [3PL SOLUTIONS](https://solistica.com/en/solutions/3pl-logistics-services/) - [FULL TRUCK LOAD (FTL)](https://solistica.com/en/solutions/ftl-shipping-services/) - [LESS THAN TRUCK LOAD (LTL)](https://solistica.com/en/solutions/ltl-shipping-services/) - [MULTIMODAL SERVICES](https://solistica.com/en/solutions/#multimodal) - [INTERNATIONAL LOGISTICS](https://solistica.com/en/solutions/international-logistics-services/) - [WAREHOUSE](https://solistica.com/en/solutions/warehousing-services/) - [VALUE-ADDED](https://solistica.com/en/solutions/3pl-value-added-services/) - INDUSTRIES - [HEALTH AND PERSONAL CARE](https://solistica.com/en/industries/health-and-personal-care/) - [FOOD AND BEVERAGES](https://solistica.com/en/industries/food-and-beverages/) - [ANIMAL NUTRITION](https://solistica.com/en/industries/nutrition/) - [ELECTRONICS](https://solistica.com/en/industries/electronics/) - [AUTOMOTIVE](https://solistica.com/en/industries/automotive/) - [RETAIL](https://solistica.com/en/industries/retail/) - [CONSUMER GOODS](https://solistica.com/en/industries/consumer-goods/) - [CLOTHING AND TEXTILES](https://solistica.com/en/industries/clothing-and-textiles/) - ABOUT US - [WHO ARE WE?](https://solistica.com/en/about-us/) - [OUR PURPOSE](https://solistica.com/en/our-purpose/) - [DIFFERENTIALS](https://solistica.com/en/our-differentials/) - [NEWS](https://solistica.com/en/news/) - [CAREERS](https://solistica.com/en/careers/) - [SUSTAINABILITY](https://solistica.com/en/sustainability/) - BLOG - [ARTICLES](https://blog.solistica.com/en) - [SUCCESS STORIES](https://blog.solistica.com/en/success-stories) ![](https://blog.solistica.com/hubfs/Fotos%20Blogs%20Enero%202022/Featured-Cadenas%20de%20suministro%20circulares.jpg) # Circular Supply Chains 11 February, 2022 [Logistics supply chain optimization by industry](https://blog.solistica.com/en/tag/logistics-supply-chain-optimization-by-industry) Collecting discarded materials to reuse them productively is not only a profitable idea, but also has become a global need and, thus, necessary for our industry in general as the traditional cycle of manufacturing and disposing is an environmental and financial dead-end bringing bigger costs that are impossible to sustain in all aspects.  Until quite recently, supply chains had been working following that simple, one-way, structure: we move raw materials to factories to manufacture products and then distribute those goods and use them until we dispose of them, in a linear structure.  Nevertheless, a new model has arisen as the standard for the future: **Circular Supply Chains**, returning goods to their manufacturing origin and making the best use of available resources; this brings two major advantages: our actions benefit sustainability, which in turn benefits the whole chain, and a new business opportunity for manufacturers and sellers.  ## **Turning waste into opportunity ** Laws and regulations for adequately disposing and recycling waste and manufacturing byproducts have become increasingly, and understandably, stricter. Circular supply chains help us meet these rules while giving us the opportunity to save and get resources.  In a circular supply chain, manufacturers and sellers can recover goods at the end of their life cycles to restore and resell them as either refurbished products or as byproducts or raw materials they can use in their own or others’ manufacturing processes.  This trend is also boosting another equally positive trend: companies are looking for ways to make it easier to recover their products’ components once they get them back and to make them last longer so they can survive more life cycles.  By changing the traditional "in and out" line for a cycle in their supply chains, companies are also lowering costs and reducing the waste they must dispose. Additionally, reusing materials costs less than manufacturing goods from scratch.  In short, contrary to what we may think and despite the initial investment incurred in changing processes, this model turns out to be eventually cheaper.  ## **Great social and financial benefits ** Once this model is in place, companies spend less money and use less raw materials – which in turn keeps prices low and avoids shortages. They can also foresee the number of reused materials they need to manufacture new goods so they can budget better, foreseeing expenses more accurately, and keeping costs under control.  It is worth keeping in mind that the price of many categories of raw materials fluctuate constantly, especially metals, which have experienced great volatility recently.  In addition, companies lower their environmental impact (which may give them access to government incentives), reduce exposure to volatility and, above all, increase customer satisfaction by meeting the growing demands clients have for companies protecting the environment.  This is in fact one of the major advantages of embracing the circular model: responding positively to customer demands, who are increasingly aware of the environmental impact of their shopping decisions and more likely to choose products with a smaller environmental footprint. To put a scale to this, according to global data, close to 7 in every 10 consumers are willing to pay more to buy products from sustainable brands.  In other words, companies using this model are not just saving money and creating new income sources, they are also increasing brand value, company goodwill, and market share.  For all these reasons, we can see how circular supply chains will replace linear supply chains within this decade. There are no reasons to reject this model. The circular supply chain is the future.   ### Share [![Share on facebook](https://blog.solistica.com/hs-fs/hubfs/facebook-color.png?width=32&name=facebook-color.png)](http://www.facebook.com/share.php?u=https://blog.solistica.com/en/circular-supply-chains&utm_medium=social&utm_source=facebook) [![Share on linkedin](https://blog.solistica.com/hs-fs/hubfs/linkedin-color.png?width=32&name=linkedin-color.png)](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.solistica.com/en/circular-supply-chains&utm_medium=social&utm_source=linkedin) [![Share on twitter](https://blog.solistica.com/hs-fs/hubfs/twitter-color.png?width=32&name=twitter-color.png)](https://twitter.com/intent/tweet?original_referer=https://blog.solistica.com/en/circular-supply-chains&utm_medium=social&utm_source=twitter&url=https://blog.solistica.com/en/circular-supply-chains&utm_medium=social&utm_source=twitter&source=tweetbutton&text=) [![Share on email](https://blog.solistica.com/hs-fs/hubfs/email-color.png?width=32&name=email-color.png)](mailto:?subject=Check%20out%20https://blog.solistica.com/en/circular-supply-chains&utm_medium=social&utm_source=email%20&body=Check%20out%20https://blog.solistica.com/en/circular-supply-chains&utm_medium=social&utm_source=email) [See all articles](https://blog.solistica.com/en) ### Sign up here! Join the Solistica community and receive the latest news. ## Sign up here! Join the Solistica community and receive the latest news. ## More about Logistics supply chain optimization by industry [![](https://blog.solistica.com/hubfs/freepik__adjust__41725.png)](https://blog.solistica.com/en/secure-warehouse-management-optimize-your-logistics-effectively) [Transport Management](https://blog.solistica.com/en/tag/transport-management), [Logistics supply chain optimization by industry](https://blog.solistica.com/en/tag/logistics-supply-chain-optimization-by-industry) ### [Secure Warehouse Management: Optimize your logistics effectively](https://blog.solistica.com/en/secure-warehouse-management-optimize-your-logistics-effectively) Optimize your logistics with secure warehouse management strategies. 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Some actions, such as monitoring and optimizing inventory levels and having solid contingency plans, will enable companies to cope with crisis situations and ensure a continuous and efficient flow of products and services, resulting in the optimization of the supply chain. 21 July, 2023 3 Minutes [![](https://blog.solistica.com/hubfs/Fotos%20Blog%20Agosto%202022/Featured-Cadena%20de%20suministro%20directa%20-%20Satisface%20las%20necesidades%20de%20tus%20clientes.jpeg)](https://blog.solistica.com/en/suppliers-their-impact-on-supply-chains-and-how-to-choose-them) [Logistics supply chain optimization by industry](https://blog.solistica.com/en/tag/logistics-supply-chain-optimization-by-industry) ### [Suppliers, their impact on supply chains, and how to choose them](https://blog.solistica.com/en/suppliers-their-impact-on-supply-chains-and-how-to-choose-them) Suppliers selection: a high-impact decision in the supply chain 21 September, 2022 2 Minutes ## Recent posts [![](https://blog.solistica.com/hubfs/freepik__adjust__30547.png)](https://blog.solistica.com/en/how-to-migrate-from-an-overcrowded-warehouse-to-a-comprehensive-3pl-operator-in-mexico) [Logistics Optimization](https://blog.solistica.com/en/tag/logistics-optimization), [3PL Logistics](https://blog.solistica.com/en/tag/3pl-logistics), [Warehousing and Distribution](https://blog.solistica.com/en/tag/warehousing-and-distribution) ### [How to migrate from an overcrowded warehouse to a comprehensive 3PL operator in Mexico?](https://blog.solistica.com/en/how-to-migrate-from-an-overcrowded-warehouse-to-a-comprehensive-3pl-operator-in-mexico) Migrating to a comprehensive 3PL increases order accuracy to 99.5% and reduces storage by 35%. Practical guide with transition phases, real KPIs, and benchmarks in Mexico. 2 March, 2026 8 Minutes [![](https://blog.solistica.com/hubfs/freepik__adjust__3918.png)](https://blog.solistica.com/en/is-your-logistics-setup-too-small-5-signs-that-you-need-a-comprehensive-3pl) [3PL services](https://blog.solistica.com/en/tag/3pl-services), [Logistics Optimization](https://blog.solistica.com/en/tag/logistics-optimization), [Supply Chain Management](https://blog.solistica.com/en/tag/supply-chain-management), [3PL Logistics](https://blog.solistica.com/en/tag/3pl-logistics), [Logistics outsourcing](https://blog.solistica.com/en/tag/logistics-outsourcing), [Logistics costs](https://blog.solistica.com/en/tag/logistics-costs), [comprehensive logistics](https://blog.solistica.com/en/tag/comprehensive-logistics), [Strategic storage](https://blog.solistica.com/en/tag/strategic-storage) ### [Is your logistics setup too small? 5 signs that you need a comprehensive 3PL](https://blog.solistica.com/en/is-your-logistics-setup-too-small-5-signs-that-you-need-a-comprehensive-3pl) Your company needs 3PL when costs exceed 18% of revenue, there are inventory shortages, and deliveries take more than 48 hours. 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