Rising Pressure for Circular Supply Chains: Turning Waste into Value

IXL Center Team
Oct 31
2 min read

Why This Matters Now

As global supply chains face disruptions, scarcity, and scrutiny, the traditional linear model of production is breaking down. The next phase of transformation is circularity, designing materials, products, and systems that can be reused, repaired, and reintegrated into the economy.

Circular supply chains create resilience by reducing dependency on virgin resources, minimizing waste, and enabling companies to capture value that would otherwise be lost.They also align directly with evolving regulations, such as the EU’s Circular Economy Action Plan and Extended Producer Responsibility frameworks emerging worldwide.

According to UNDP, by 2030, circular economy transitions could unlock up to 4.5 trillion dollars in global economic benefits while cutting material use by 30 percent.

The Strategic Questions Every Executive Should Be Asking

How can circular supply chains strengthen our resilience to resource volatility?
Which materials or product lines can be redesigned for reuse, repair, or recycling?
How can we use data and digital tracking to enable full material visibility?
What partnerships are needed to close material loops across industries?
Can circularity become a growth engine rather than a compliance measure?

Cross-Industry Market Signals

IKEA is embedding circularity into product design, logistics, and resale models to eliminate waste and extend product lifecycles.
Apple is scaling its material recovery technology, including its Daisy robot, to reclaim rare earth elements from iPhones and other devices.
Schneider Electric has built a global circular ecosystem that refurbishes electrical equipment and resells it through certified sustainability channels.

Case Studies in Action

Our work highlights how organizations are adapting to the circular supply chain revolution:

Global Mining Company: explored circular mineral recovery and recycling models to reduce environmental impact and strengthen supply stability.
Industrial Manufacturer: developed a reverse logistics strategy to repurpose materials and components from used products.
Consumer Goods Company: tested new service-based models that replace single-use sales with product-as-a-service systems.

The Risk of Inaction

Organizations that fail to act on circularity risk:

Increased exposure to resource shortages and cost volatility.
Regulatory non-compliance as governments tighten sustainability reporting and waste mandates.
Reputational damage as consumers and investors demand transparent, circular practices.
Missed revenue opportunities from secondary markets and recovered materials.

From Awareness to Action – How the Innovation Olympics Helps

The IXL Innovation Olympics connects organizations with top global talent to identify, test, and prototype circular supply chain opportunities aligned with their business strategy.

Through our program, companies can: