Case study analysing potentials to improve material efficiency in manufacturing supply chains, considering circular economy aspects

Abstract

In order to decouple economic growth from global material consumption it is necessary to implement material efficiency strategies at the level of single enterprises and their supply chains, and to implement circular economy aspects. Manufacturing firms face multiple implementation challenges like cost limitations, competition, innovation and stakeholder pressure, and supplier and customer relationships, among others. Taking as an example a case of a medium-sized manufacturing company, opportunities to realise material efficiency improvements within the company borders-on the supply chain and by using circular economy measures-are assessed. Deterministic calculations and simulations, performed for the supply chain of this company, show that measures to increase material efficiency in the supply chain are important. However, they need to be complemented by efforts to return waste and used products to the economic cycle, which requires rethinking the traditional linear economic system.