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

Assessment of operational capabilities 2.22.1 Supply chain steps Collection Logistics ...Circular supply chain configuration Build 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.Insource Outsource Product design for circularityCircular flow planningProcurement and reverse logisticsCustomer engagementTriage and processingReconditioning and distribution Internal maturity level (illustrative): Low HighCircular supply chain framework – how to succeed FIGURE 7 Source: CTI initiative and panel sessions. 3.2 Key design decisions Supply chain structure: integration, separation or hybrid? While circular and linear supply chains share functions such as logistics and warehousing, critical differences emerge at scale. Circular operations like return forecasting and product condition assessment require distinct capabilities. Many companies find that traditional models cannot simply stretch to accommodate reverse flows. Integrating circular and linear operations such as shared logistics, warehousing and IT systems improves visibility and streamlines management, improving coordination and reducing duplication. In the 2025 survey, 56% of companies reported mostly or fully integrated circular and linear supply chains. Integration was particularly prevalent in consumer tech and machinery – over 70% – where operational compatibility is higher. Separation, meanwhile, allows organizations to meet circularity demands without disrupting traditional operations. Dedicated infrastructure and workflows enhance focus and reduce friction, providing flexibility to test and scale circular models. Hybrid models can offer the best of both worlds: Most circular leaders use hybrid models, selectively integrating or separating supply chain elements. For example, logistics and collection may be shared, while sorting and remanufacturing use dedicated set-ups. Hybrid configurations offer flexibility and efficiency where needed. Circular Transformation of Industries 17