Logistics goes in circles

Circulatory flow management is responsible for recirculation of residual matter and, as a result, for the completion of a product’s life cycle. For this purpose, operating channels that run in the opposite direction of traditional distribution are set up. In the process, residual matter can either be returned to a company as secondary raw materials or be disposed of as waste.

Completing the circle

Society’s expanding awareness of the environment means that product life cycles are increasingly gaining a circulatory nature. In this view of the world, a product is no longer viewed as waste that must be discarded when it reaches the end of its useful life. Increasingly, people are calling for the reuse of products - at least parts of them - in order to conserve natural resources and to reduce the burden placed on the environment.
Circulatory flow management is closely associated with recycling. In consideration of general environmental principles and the goal of reducing the share of material being discarded, it can also be defined as recycling. Once end users are finished with a product, it is returned, and then disassembled or shredded by a recycling company. After being reconditioned or recycled, the parts are returned to the economic cycle as components or secondary raw materials [1].
The task of circulatory flow management is to complete residual-matter loops. Depending on the type of intermediaries in use and the system, single-stage and multi-stage redistribution channels, residual-matter cycles and disposal channels are created [2].

Redistribution channel

Redistribution channels are identical to distribution channels for target products. Only the direction of the flow is different. The source of the residue stream corresponds to the destination of the target product stream.
A single-stage redistribution channel, in which the end customer returns residual matter directly to the manufacturer, is one option if the residual matter is relatively single line and large amounts of it can be returned. In addition, it must be possible for the end customer to make regular deliveries to the manufacturer in a disposal cycle. In multi-stage redistribution channels, retailers and wholesalers are used as intermediaries. This is the case for the return of empty bottles in standard-sized cases [3].

Residual cycle

Residual cycles are designed to ensure the reusability of secondary raw materials. As a result, the residual matter will be recycled in any case. For instance, the manufacturer of the used or worn-out products himself can recycle the residual matter. Or other companies can recycle it. In this process, disposal-logistics specialists can perform the tasks of warehousing, transport, handling, collection and separation, packing and order processing Order processing .
In single-stage residual-matter cycles, residual matter is channeled directly from the company where it is created to the site of its further use. This is a suitable option for residual matter that does not have to be reprocessed before its reuse. In multi-stage residual-matter cycles, the residual-matter stream is disrupted by someone like a recycling company. The reuse can then be initiated by the manufacturer or by another company [3].

Disposal channel

Disposal channels manage the residue stream between the residue producer and the facilities that are responsible for the orderly disposal of wastes, e.g., incineration plants or landfills.
The single-stage disposal channel is suitable for all residual matter that is created in large amounts and does not have to be separated for disposal. Multi-stage disposal channels are necessary when residual matter has to be collected for long-distance transport, analyzed or specially processed [3].

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References

[1] Management kreislauforientierter Entsorgungskonzepte | Ivisic 2002
[2] Umweltschutz und Entsorgungslogistik | Stölzle 1993
[3] Logistiksysteme | Pfohl 2004