Published on : Sep 11, 2015
There are many companies dealing in consumer goods that have adopted the “circular economy”
approach in their respective businesses. This approach is also known as the closed loop principle wherein consumers can recycle and in a way also reuse the things that they do not use anymore. Companies such as Starbucks, PepsiCo, and Unilever are adopting similar innovative ways in order to control the consumption of natural resources and prevent the overexploitation of the same.
In this technique, the resources that are utilized for manufacturing the finished goods are again used in the production of newer products that are of the same utility and the same value. An ideal example would be Levi’s, a clothes manufacturing company which has successfully employed the principle of circular economy. The main rationale of this company is to do away with the waste culture, and thus facilitate creative and practical ways of extending the sturdiness of jeans, reprocess them, and recover the fibers by converting them into raw materials that will be used again for manufacturing Levi’s products.
There are numerous durable goods manufacturing firms also that have adopted the circular economy approach. Dell is one such example of a company that implemented this principle in many of its businesses and now the company uses the used goods from its consumers in order to reprocess the plastics and apply them in the manufacturing process of newer goods. Caterpillar is another good example.
This company established a special remanufacturing division that brings together huge lots of refurbished components and parts in the market place each year. Rolls Royce re-produces marine engines which are again sold by the company to companies such as Thames Clippers. Companies such as the latter utilizes these refurbished engines in order to fuel its water taxis which cruise visitors and tourists on London’s Thames River.