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Toward a Circular Supply Chain: Shifts in SCOR Supply Chain Habits

Today’s global wealth has been built with the power of a linear economy, which is supported by linear supply chains around the world. These supply chains move materials from extraction to refining and processing operations; to a series of manufacturing plants; through ports, warehouses and cross-docks; and finally to the point of use. Most of this movement happens in a one-way flow.

Circular Supply Chains Will Shift SCOR Supply Chain Processes

Imagine: All waste and process by-products in the world will become the raw materials and inputs needed by all the processes in the world. In turn, the maintenance, refurbishment and remanufacturing industries will dramatically increase in size and value. Then, aftermarket supply chains will become the dominant model as linear supply chains give way to circular supply chains.

Circular Supply Chains Will Shift SCOR Supply Chain Performance Metrics

In the circular economy, materials and resources loop throughout processes indefinitely. Supply and demand loops among value networks allow for types of monetization that were previously impossible. On a global scale, this circular economy is expected to add $4.5 trillion to the global economy by 2030.

Circular Supply Chains Will Shift SCOR Supply Chain Practices

Supply chains around the world will be challenged to shift their habits to support new business models. The increased complexity that will be managed by global supply chains will be represented by future Supply Chain Operations Reference (SCOR) model versions.

Circular Supply Chains Will Shift SCOR Supply Chain Skills

Workforce skills, experiences and training become critical for the transition to a circular economy. Supply chain roles make up 40% of the jobs in the United States, and these roles will shift over time, prompting an update of skills, experiences and training.

Toward a Circular Supply Chain: Shifts in SCOR Supply Chain Habits