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

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How is your circular supply chain currently organized in relation to your linear supply chain?Percents of respondents (%) Current Stage40% 16%31%8%5% Fully integrated Mostly integrated Partially integrated Mostly independent Fully independentMost companies run circular supply chains in hybrid or integrated configurations, with only 5% operating fully independent networksFIGURE 8 Source: Global market survey by Bain & Company and the CTI initiative of 491 executives (July 2025). CASE STUDY 2 Schneider Electric – using existing structures Schneider Electric converted two French production sites into refurbishment hubs and integrated a circular distribution centre into a standard distribution centre. The company adapted tools for order tracking, condition monitoring and demand planning. By 2024, this model operated across 13 sites, recovering 160 tons of equipment. Circular product coverage increased from 6% in 2022 to 38% of Schneider Electric ranges two years later. It kept sorting, testing and refurbishment in-house for expertise, while outsourcing reverse logistics. Partnership strategy: building internal capabilities or working with others Map current capabilities and gaps: Companies must assess operational capabilities across each circular supply chain step, identifying assets, systems and teams that can be repurposed, as well as gaps that need filling. While traditional infrastructure offers a base, circular models often require new workflows, roles and metrics. Strategic priorities guide ownership decisions: After identifying gaps, companies should evaluate whether to address these internally through investment and hiring, or through partnerships. Strategic priorities and cost-benefit analyses should guide choices. It’s crucial to consider where control or product knowledge must remain internal and where speed or scale are critical. Each model offers different benefits. In-house control works for high-value or sensitive processes like diagnostics or remanufacturing, providing more control over quality and customer experience. Outsourcing offers speed, scale and cost-efficiency for labour-intensive or distributed tasks such as collection and basic repairs. Circular Transformation of Industries 18
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