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

4.1 Technology and data Circular operations run blind without robust data systems. Digital tools shift operations from reactive to predictive. IoT sensors optimize maintenance and recovery, blockchain supports traceability, and analytics balance variable flows. Automation – robotic sorting, 3D scanning – improves speed and quality.But adoption remains uneven. Survey results show that 70-80% of companies plan to use AI for circularity in the future, compared to approximately 30% today. Strong cybersecurity is essential to safeguard data and trust. CASE STUDY 6 GreenPlat – traceability systems to secure recycling GreenPlat, in partnership with Arcos Dorados (McDonald’s largest Latin American franchisee), has built a circular value chain for used cooking oil (UCO) in Brazil that collects and converts UCO into biodiesel. A blockchain-based traceability platform that monitors all collection points has been essential to managing this fragmented, multi- participant value chain. Since its 2021 launch, GreenPlat’s supplier base has grown by 30% and greater scale has increased UCO sales revenue by 16%. The company recycled more than 2.57 million litres of UCO in 2024. 4.2 People and culture Changing mindsets is as important as upgrading skills. Circular initiatives work when company leaders embrace the shift from disposal to repair and reuse. Manufacturing companies need a complete cultural change in which extending product life and giving products a second chance becomes an attractive business opportunity, not something they fear will hurt new product sales. Making circularity part of company strategy requires strong leadership, proper management systems, rewards that encourage the right behaviour and ways to measure success. These include repeat customer revenue, connected products, resource savings, reuse rates and circular income.Changing how people think is essential. Employees often resist change or don’t understand circularity, which creates major obstacles. Training helps build skills for remanufacturing, refurbishment and sorting – activities that traditional supply chains don’t normally do. Companies can either teach existing employees these new skills or hire people who already have circular experience. Without building these capabilities, organizations become too dependent on outside partners and fail to make circularity central to their business. Making circularity part of company strategy requires strong leadership, proper management systems, rewards that encourage the right behaviour and ways to measure success. 23 Circular Transformation of Industries