What is a key feature of a closed-loop supply chain?

A key feature of a closed-loop supply chain is the reuse and recycling of products. This system is designed to maintain the lifecycle of a product beyond its initial use phase. In a closed-loop supply chain, materials are continually repurposed and returned to the production process, minimizing waste and promoting sustainability. This approach not only reduces the need for raw materials but also lessens the environmental impact of manufacturing and disposal.

The emphasis on reuse and recycling supports a circular economy, where products are designed with the intention of being repurposed. This model contrasts sharply with a linear flow of materials, where products are created, used, and then discarded without consideration for their end-of-life applications. The focus on closing the loop on materials fosters innovation in product design and resource management, leading to environmental benefits and cost savings over time.