A global consumer goods company's circular economy: how to build a sustainable supply chain

A leading global consumer goods company has long been recognized as a leader in sustainability. 

Faced with growing environmental concerns and increasing consumer demand for eco-friendly products, the company adopted a circular economy strategy designed to minimize waste, maximize resource efficiency and reduce its overall carbon footprint. 

For businesses across the globe—whether large enterprises or small and medium-sized enterprises (SMBs)—this approach offers a practical blueprint for building more sustainable supply chains.

A global consumer goods company's commitment to a circular economy

This organization's commitment to sustainability is not new. Their sustainable living plan, introduced in 2010, laid the foundation for the company’s ambitious circular economy goals. 

The core principle of a circular economy is simple: rather than following a linear “take, make, dispose” model, companies focus on keeping products and materials in use for as long as possible.

This approach spans the full product lifecycle—from designing products for reuse or recycling, to reducing production waste, to reintegrating end-of-life products back into the supply chain.

This organization's circular economy approach spans several key areas:

• Redesigning products for sustainability: By rethinking how products are made and packaged, the company works to reduce waste at the source, including a commitment to make 100% of its plastic packaging reusable, recyclable or compostable by 2025.
• Waste-free production: As of 2020, the company has achieved zero non-hazardous waste to landfill across its global manufacturing operations. This was no small feat, requiring significant changes to how waste is managed in their factories.
• Recycling and reuse programs: In collaboration with retailers and waste management partners, the company has implemented take-back and recycling programs that encourage consumers to return packaging for reuse or recycling.

Since the launch of its Sustainable Living Plan, the organization has reduced its total waste footprint per consumer use by 32%. [1]

These efforts have not only lowered environmental impact but have also aligned with growing consumer expectations for more sustainable products.

The challenges of transitioning to a circular supply chain

While many leading consumer goods organizations have made significant progress, the transition to a circular economy has not been without its challenges. 

Building a circular supply chain is inherently complex, particularly for large multinational corporations operating across multiple regions and regulatory requirements.

However, these challenges are not unique. They affect any organization working to adopt more sustainable practices.

Common challenges include:

• Managing reverse logistics: One of the biggest hurdles in a circular economy is managing the return flow of products and materials. This includes collecting used packaging from consumers and ensuring it is properly recycled or reused. This requires a robust reverse logistics network, which can be costly and difficult to manage on a scale.
• Coordinating a global supply chain: Multinational supply chains span diverse regulatory frameworks, infrastructure levels and operating models, making it difficult to align sustainability initiatives consistently across regions.
• Sourcing recycled materials: While there is a growing demand for recycled materials, the supply of high-quality recycled inputs can be inconsistent. This is particularly true in regions where recycling infrastructure is underdeveloped.

These challenges are not impossible, but they do require significant investment in logistics, technology and partnerships. 

For SMBs, the barriers to implementing a circular economy can seem even higher, given their limited resources. However, with the right tools and a phased approach, SMBs can overcome these challenges and build their own sustainable supply chains.

According to a recent article, McKinsey highlights the complexities of adopting circular value chains, emphasizing the need for strong reverse logistics networks and infrastructure to support circular models. [2]

How Infios can support circular supply chain models

Although Unilever’s scale allows them to invest heavily in sustainability, smaller businesses can still adopt circular economy practices by leveraging technology. 

Infios offers a range of solutions that help businesses—regardless of size—build circular supply chains by optimizing their resource use and improving logistics.