Circular Transformation of Industries The Art of Scaling Circular Supply Chains 2025

Setting clear priorities: products, customers and markets 2 Key takeaways –Choose pilot markets strategically: Launch in regions with supportive regulations, existing infrastructure and strong customer demand before scaling to more challenging markets. –Target receptive customers first: Identify segments most likely to buy circular products and return used items, whether they’re motivated by price, sustainability or convenience. –Start with the right products: Focus on items with high return rates, strong resale value and technical feasibility for repair or remanufacturing – not all products are equally suited to circular models. Varying customer acceptance, product economics and regulatory environments demand careful choices about where to begin circularity. This chapter sets out which product characteristics, customer segments and markets are most suited to circular business models. Smart prioritization sets a clear direction and establishes where to focus resources. Pilots help companies translate strategy into action. Early wins serve as proof points – testing different markets, products, customer segments and business models – before expanding to broader activities. Prioritization isn’t sequential. Companies must consider four dimensions together – geography, customer, product and value – as they tend to interact. This is because the appeal of a circular offering for a specific product depends on the customer segment, its value proposition and the market in which it is sold.Knowing where to begin is the foundation of successful circular supply chains. The World Economic Forum and Bain & Company framework for developing and scaling circular initiatives FIGURE 5 Where to play: priorities Where should I prioritize to drive scale and value?1How to succeed: circular supply chain blueprint What blueprint enables circular supply chain execution at scale?2 Core strategy2.1 Supply chain steps Collection Logistics ...Circular supply chain configuration Assessment of operational capabilitiesBuild a new dedicated supply chainRepeat A/B/C/D for each supply chain stepIntegrate with existing linear supply chain Insource or outsource the new supply chain? BA C How to partner? Partner selection, centralization level, partner incentivization.D How to design the supply chain network? Centralization level, integration level with linear supply chain, investment assessment. Product design for circularityCircular flow planningProcurement and reverse logisticsCustomer engagementTriage and processingReconditioning and distributionInsource Outsource Supporting enablers What foundations are needed for scale? 3 INTERNAL EXTERNAL Tech & data (including AI) People & culture (including governance) Finance & investments Policy & regulationCustomer Geography Circular value proposition Product 2.2 Source: CTI initiative and panel sessions. Circular Transformation of Industries 10