Circular procurement focuses on closing energy and material loops within supply chains. This is achieved by remanufacturing or reusing resources. It creates long-term value by focusing not just on single transactions, but on the relationships between clients and suppliers. The lifecycle of a product throughout the whole value chain is assessed in order to make circular procurement possible.
The Circular Procurement Guide outlines how businesses can redesign their procurement processes for greater ‘circularity’.
The six steps suggested in the guide are as follows:
- Define your circular ambitions.
- Determine your functional needs.
- Formulate your questions and communicate with the market.
- Choose your supplier(s) and award the contract.
- Implement circular usage policies.
- Evaluate success.