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The key role of logistics in a circular economy

Easyfresh as reefer and food logistics suppliers is seeking to participate in the construction of a sustainable economy model

A circular economy is a system which functions with closed circles. Regenerative design characterizes the circular economy. It aims to retain as much value as possible of products, materials and parts. The aim of this green economy strategy is to create a system that allows for optimal reuse, remanufacturing, long usable life and recycling. Logistics plays a key role in this circuit.

The circular economy is normally opposed to a "linear economy" ; we extract raw materials and use them to make products. We buy them, use them and throw them away. Due to that, massive amounts of waste happens.

In contrast, a circular business model is reusing and recycling all materials. Again, logistics is paramount in the recycling arena. Basically, in said model waste disappears because the residual streams become valuable resources.

A circular economy relies on system thinking. Businesses, organisms, people; everyone is part of a network and the actions of each one impact others. In a circular economy, all this is taken into account and it aims at creating a more effective and resilient system.

The circular economy is entirely compatible with the usual or natural conomy cycles. In fact the economic cycle is the fluctuation of the economy between periods of expansion (growth) and contraction (recession). Factors such as gross domestic product (GDP), interest rates, total employment, and consumer spending, can help to determine the current stage of the economic cycle. The circular economy is logically exposed to these fluctuations and should minimize same if well structured on the long run. For that target, smart logistics should follow the circular needs of the economy, by fiding sustainable ways to rotate goods its supply chain services within the circuit.

 

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