English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese
mexico-boosts-miami-air-cargo-volumeMIAMI: August 17, 2017. Miami International Airport has reported a 4.8 percent growth in cargo traffic for the first half of 2017 with...
turkish-cargo-helps-save-livesMOGADISHU: August 15, 2017. In March this year actor Ben Stiller and other celebrities launched a viral crowdfunding on behalf of the...
first-flight-out-for-hungarian-horsesBUDAPEST: August 15, 2017. Cargolux and Hellmann Worldwide Logistics have flown 14 Hungarian-bred racehorses from Budapest via...
european-commission-supports-hna-purchase-of-frankfurt-hahn-airportFRANKFURT HAHN: August 10, 2017. The HNA Group has completed its acquisition of Frankfurt-Hahn airport from the German state of...
matson-to-add-marshall-islands-serviceHONOLULU: AUGUST 07, 2017. Matson is adding to its Marshall Islands (RMI) service in the first quarter of 2018 with a new biweekly...
fortune-50-companies-back-no-fee-recruitment-in-supply-chainsNEW YORK, NY: AUGUST 07, 2017. Ford, General Motors, Hormel Foods, Marriott Hotels and Michael Kors have agreed to promote ethical...

A US$4.5 trillion business opportunity

October 03, 2015: A new report by Accenture* estimates that changing from a linear to circular supply chain is worth upwards of US$4.5 trillion to participants.

Accenture Strategy managing director Peter Lacy argues that the "take, make and waste approach of traditional, linear business models has now begun to choke economic growth through unpredictable raw material prices and the increased cost of depending on less stable supplies of constrained resources."

He suggests companies can turn waste into wealth by adopting new business models that reduce dependence on scarce resources and generate new innovative services that grow revenues.

Google seems to think so. It has just joined circular economy proponent the Ellen MacArthur Foundation to develop "innovative, market-leading initiatives" together with Cisco, Kingfisher, Philips, Renault and Unilever.

According to Dame Ellen, "Google's ambition to lead the way on the circular economy represents a step-change opportunity and is ideally placed to play a key enabling role in the transition."

Panalpina seems to have begun this process. Assuming the word "trillion" has meaning to the logistics industry, no doubt other 3PLs will soon follow their customers' lead.

- Simon Keeble is the editor of Freightweek

 

*Accenture consultants Peter Lacy and Jakob Rutqvist say that transitioning to the circular economy may be the biggest revolution and opportunity in the past 250 years to [re]organize future production and consumption.

In their new book 'Waste to Wealth' they describe five main circular business models that are generating innovative resource productivity improvements in more than 120 companies: "At its essence, the circular economy represents a new way of looking at the relationships between markets, customers and natural resources. And the lens through which it's viewed is disruptive to new business models powered by new technology breakthroughs, in particular digital.

"Digital disrupts the way we produce and consume through innovative business models established by innovative technologies. Blended together, the circular economy, innovative new business models and digital revolution represent a huge opportunity for companies to create a competitive advantage, or as we put it, a 'circular advantage,'" explain the two men.

- powered by Quickchilli.com -