The role of international supply chains establishing a circular economy model

: pp. 292 - 300
Lviv Polytechnic National University
Lviv Polytechnic National University Department of Foreign Trade and Customs

Key trends in international logistics are highlighted. The essence of the international supply chain in the conditions of the formation of a circular economy model is revealed. The advantages of the circular economy over the linear economy are substantiated. Successful examples of the organization of zero-waste supply chains in the activities of well-known companies according to the principles of sustainable development are presented. The circular economy is proven to be the best alternative in today’s circumstances, as it aims to use products, equipment and infrastructure for longer, thus improving the productivity of these resources.

The article argues that a sensible solution is to shift the focus from a linear supply chain to a circular supply chain. Thus, we are talking about a logistics model that focuses on the full life cycle of products. By investing in services such as reverse logistics, IT asset allocation and offering resource recovery and recycling options, we can extend the use of products and therefore reduce the negative impact on the environment.

One of the most important steps on the way to the implementation of the circular economy is the reorganization of the international supply network and the transition from a linear supply chain to a circular one.

In recent years, organizations have begun to focus on sustainable practices to solve environmental, social and economic problems, forming an approach based on the adaptation of circular economy methods.

Circular economy is an economic system aimed at the elimination of waste and continuous use of resources. That is, waste becomes resources. Circular business systems involve reusing, sharing, repairing, renovating, recycling to create a closed loop system, minimizing resource use and waste generation, pollution and carbon emissions. The circular economy aims to use products, equipment and infrastructure for longer, thus improving the productivity of these resources. Waste materials and energy must become input resources for other processes.

The introduction of circular economy requirements opens up new opportunities for the development of international supply chains, because it is obvious that products in the circular economy no longer conform to the traditional linear model.

Through circular supply chains, it is possible not only to reduce the production of waste, but also to achieve self-sustaining production systems in which materials are returned to the production cycle. Such supply chains apply to both the manufacturing and service sectors.

Therefore, the circular economy is increasingly recognized as a better alternative to the dominant linear economic model. Circular Supply Chain Management, which integrates circular economy philosophy into supply chain management, offers a new and compelling perspective for the field of sustainable business development. Accordingly, interest in research is growing.

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