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There has been a lot of focus on optimizing the supply chain for order fulfillment. The on-going efforts to perfect the ‘order to cash’ process have yielded great rewards. But what about returns? Automation has reduced the number of returns due to errors however the world must move from a linear to a more circular economy and this will impact the entire supply chain.
The notions of a circular economy and green distribution are really quite wonderful. Imagine an industry that produces no waste or pollution, and where products are designed for safe and non-intrusive disposal. Imagine an industry where 100% of unconsumed or partly consumed products are returned for re-use.
Kudos to the Association of Battery Recyclers for their contribution to the circular economy. From their website: “The members of the association share a dedication to environmental and community responsibility.” Spent batteries are turned into lead metal, plastic and sodium sulfate, which are used to manufacture new lead batteries and other useful products. Their website also states that lead batteries have a 99% recycle rate within most of North America – impressive!
With greater awareness and increasing environmental pressures from various stakeholders, more companies are incorporating green distribution practices into their daily activities. I believe distributors can play an important role in the circular economy by selecting products and suppliers that behave responsibly and by participating in the efforts to recycle and/or re-use the products that they sell.
Goods are coming down the supply chain – we’re pretty good at that. Now it’s time to move stuff back up. Distributors can take an active role in balancing the financial responsibility of making money with their responsibility to benefit society as a whole. This must include their responsibility to preserving the environment by actively engaging management into environmental thinking.