The Circular Economy – Sustainability Is One Element at the Core

Last week, I debated Tradeshift’s Christian Lanng in a live Spend Matters webinar as we jointly explored the topic of the circular economy. In our discussion, we spoke at length both about what the circular economy is as well as what it will mean for procurement organizations of the future. (You can also read my past introductions and discussions around the topic here, here, here and here.)

One key element of the circular economy is encouraging sustainability and corporate social responsibility (CSR) through having companies take greater ownership of the end-to-end product lifecycle. Christian talked about this during the webinar but he also shared some thoughts in a Procurement Leaders blog on the topic as well. Here are some of the highlights of his comments on the topic:

“The sharing economy is made up of hundreds of compelling new businesses, including Uber, AirBnB, Lyft, Netflix and Kickstarter, which are transforming how goods and services are concepted, created, procured and sold – in fact, changing the whole distribution model. The trio of Internet ubiquity, cloud computing and mobile broadband makes the sharing economy possible.

We’ve seen major manufacturing companies like Rolls Royce starting transition from manufacturing to managed services in recent years, taking care of product life cycles end-to-end. Today, you don’t buy a Rolls Royce jet engine: you lease it and the British manufacturer will manage the process end-to-end. Again, this will have a net positive impact on the environment.”

I encourage you to read Christian’s full commentary over on Procurement Leaders blog as well as to tune in for the full webinar replay as well.

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