Will Supply Chains become Supply Circles?
There has always been talk about supply circles in the
industry. Whenever raw material prices rise and commodity market volatility
combine, businesses need to find new, low-cost ways to obtain raw materials and
recycle returned goods. Supply chain is the linear movement of processes
involved in bringing any kind of product from production to distribution.
This includes the physical flow of the product. This flow
includes the transformation, movement and storage of both goods and materials.
The supply chain also includes information flow, which is especially important
for a successful supply chain. This includes coordinating the day-to-day
movement and long-term planning of all supply-chain partners as well as the
The supply cycle factor into the entire reverse logistics
process, which can be described as the back and forth motion of the supply
chain. This considers sustainability concerns in the world of constantly
shrinking resources and energy, which can lead to dwindling profit margins. The
issue of supply and demand and how it can affect the global economic market is
one reason the federal government is pushing more towards supply circles. As
the government rules out reclaimed materials and limits access to raw
materials, supply circles (which include elements such as material recovery and
recycling) are becoming a much more attractive option when managing the product