A new holistic view on circular value chains

| McKinsey Direct

It’s easy to think of “circular value chains” as mainly for retailers: most people experience it only when they ship returns to online vendors. But it is much more than a matter of exchanging a pair of jeans for a better fit. And while there are marked differences between industries, across B2C and B2B sectors, it has become a critical piece of circularity enabling circular practices from remanufacturing of used engines to reuse of old computer parts.

With consumers increasingly appreciating and valuing circular companies, more businesses are now investing in circular value chains to save on costs by reusing products and resources, leveraging circularity as a valuable strategic differentiator. By anticipating the expected regulatory push towards circularity, the private sector could occur higher costs upfront but could generate savings and new revenue streams over the long term.

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