Launched in fall 2020, the Extensiv Supply Chain Scholarship aims to foster the talent that will drive the future of our industry. Now in its fifth year, the Extensiv scholarship program hopes to inspire fresh ideas and voices in logistics and supply chains.
Below, we present Andrew Schultz, a Spring 2025 Extensiv Supply Chain Scholarship runner up, and his essay focusing on the benefits of a regenerative circular supply chain.
Supply chain management is at the heart of how businesses operate, making it one of the most important areas for innovation. Up until recently, supply chains have followed a linear path: take resources, make products, and dispose of waste. This system has proven effective in terms of speed and efficiency, but a new approach is necessary to mitigate climate change and reduce waste. Climate change and constant manufacturing have not only affected the earth as a whole, but companies are losing money because of it. The next big thing in supply chain management is regenerative circular supply chains. This model combines the idea of reducing waste with actively helping the environment, making it a sustainable solution for the future.
To understand what makes this approach special, nature provides a positive example. In natural systems, nothing goes to waste—everything gets reused or repurposed. A regenerative circular supply chain works the same way. It combines two ideas: circular economy and regeneration. A circular economy is “a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products as long as possible. In this way, the life cycle of products is extended.”[1] Regeneration goes a bit further by not just extending the life cycle of a product and reducing waste but also improving the environment. It goes beyond “sustainability,” and instead of just making something less good, it focuses on making it exceedingly better. In other words, it is “putting back in more than we take from the world.”[2] This approach as a whole (circular regeneration) is about redesigning supply chains to keep materials in use for as long as possible and using sustainable practices to restore natural systems.
The world is facing challenges regarding resources and the environment. Supply chains are using resources that continually harm the environment and leave a carbon footprint behind them. Before the 1990s, companies were primarily focused on cost efficiency and maximizing profits.[3] Now companies are more concerned than ever about how their businesses impact the environment around them. Businesses can build resilience in their supply chains by adopting regenerative circular supply chains and creating a sustainable future.
Building a regenerative circular supply chain is possible through some specific steps. First, products need to be designed with their full lifecycle in mind. Reducing waste is one of the most important aspects of circular regeneration. This means using materials that can be repaired, recycled, or safely biodegraded. For example, Kimberly Clark uses a zero-waste system that allows them to reuse their waste to make toilet paper, paper towels, etc. By doing this, they help the environment by not disposing of waste. Second, companies need to use regenerative practices. For industries like agriculture, regeneration means improving the land instead of depleting it. Companies like CHEP, a Brambles company, reuse their waste by using existing plastic waste to make durable, long-lasting products. Their goal is to eliminate waste and reuse their waste to better the environment as a whole. Third, technology is a game-changer in making supply chains more efficient and sustainable. For instance, blockchain, a type of ledger technology, can track materials to ensure they’re being reused responsibly. Artificial Intelligence can predict where waste will most likely occur and suggest ways to avoid it. Other devices can monitor products and alert companies when they need repairs, keeping items in use longer. Overall, the use of technology can reduce waste and help a company lengthen the life of a product. Lastly, in a regenerative circular supply chain, businesses don’t just sell products—they’re also responsible for getting them back and reusing them when customers are done with them. For example, Dell and HP collect used electronics, refurbish them, and sell them again. Setting up systems for collecting and reusing products is a critical step.
Switching to regenerative circular supply chains is a big change but very beneficial. One of the very obvious wins is reducing pollution, waste, and the need for new materials. Instead of just focusing on sustainability, companies can go beyond these benefits and make the environment a better place by using regenerative practices like planting trees or improving soil. These practices help restore ecosystems and combat climate change. Not only does the environment benefit from these practices, but by using recycled materials and cutting waste, operational costs are reduced, and their operations are more efficient and sustainable. Focusing on circular regeneration does not hurt the business and help the environment; it enhances the business and helps them reduce waste and cut down on unneeded costs. By focusing on the environment, companies minimize waste and maximize profits.
Of course, there are challenges. The biggest one is cost—redesigning products, building new systems, and adopting new technologies can be expensive. However, these challenges aren’t dealbreakers. Technology is getting cheaper, governments are offering money for sustainable practices, and consumers are willing to pay more for eco-friendly products. Businesses that invest now will save money in the long run and stay ahead of competitors while helping the environment.
The next big advancement in supply chain management is regenerative circular supply chains. This approach goes beyond just reducing waste—it actively helps the planet while creating new opportunities for businesses. As the world moves toward sustainability, companies that press forward with this model will lead the way in building a more resilient, sustainable future. By focusing on a regenerative circular supply chain, companies can create systems that meet today’s needs and ensure a better tomorrow.
Student at University of Tennessee Knoxville
Works Cited