Alexis Asks: A Circular Economy in the Midst of ‘Prime Days’
Alexis Asks: A Circular Economy in the Midst of 'Prime Days' Supply and Demand Chain Executive
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We all care about the environment, that’s not a new concept.
Amazon’s Prime Day— well that’s much closer in the timeline. Back in 2015, the e-commerce brand launched its first successful annual sale that boasts member-exclusive deals on virtually any product you can think of. These deal days have continued and today, post-COVID-19, retailers are turning to e-commerce sales for strategy and profit more than ever before.
The Circular Economy: A Viable Solution for Online Retailers
Enter the circular economy. By reimagining the traditional linear model of production and consumption, the circular economy presents a viable solution for online retailers to reduce waste, enhance environmental stewardship, and increase profits simultaneously. The TLDR: The circular economy means more money, less waste, better world. Sylvia Ng, CEO at ReturnBear, says the circular economy makes the most use of existing infrastructure and products to serve more e-commerce volume.
The Need for Circular Solutions in Retail
“The shift towards online purchasing, increasing consumer experience expectations, and the proliferation of small, fast-growing DTC brands have created a large but fragmented retail landscape with significant demand for outsourced, nimble infrastructure,” explains Ng. “Retailers need to implement circular solutions, and if they don’t, they risk alienating their consumers who are increasingly demanding products to purchase.”
Challenges and Opportunities during Peak Seasons
Peak seasons are the peak. For supply chains, they’re the tip top of pushing the envelope on volume, warehousing, shipping capacity and human, and technology enhanced, workforces. Consumers are asking for the most from logistics, expecting two-day and one-day turnarounds in a bout of average shopping. During promotions, many supply chains struggle already, without the consideration of circularity.
“The supply chain isn’t designed to handle single day sales of this nature, and for retailers this means unmanageable returns. In general, warehouses can’t prioritize returns— they have orders to fulfill. While it can be difficult to manage returns when it comes to a sudden increase in demand, these peak seasons also present opportunities for retailers. We need to build with peak seasons in mind, build extra flexibility in the system to make it elastic and tap into partner ecosystems to leverage specialized, outsourced help,” says Ng.
The Importance of Returned Inventory in the Circular Economy
With return rates being 20-30% for many retailers, getting returned inventory back into stock for resale is very important for the circular economy. We need products to stop going to landfill, Ng explains, and selling them a second or third time should always be the objective. The circular economy presents a compelling opportunity for online retailers to simultaneously reduce waste, enhance sustainability, and increase profits. By integrating sustainable design principles and forging collaborative partnerships, the e-commerce space can transform supply chains into circular systems that expand on peak seasons like Prime Day, rather than creating more waste. Embracing the circular economy is not only an ethical imperative but also a pathway to long-term success and resiliency as the wave of online shoppers grows and our environment becomes paramount.
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 12: Responsible Consumption and Production | Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling, and reuse | Indicator 12.5.1: National recycling rate, tons of material recycled |
| SDG 8: Decent Work and Economic Growth | Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation | Indicator 8.3.1: Average hourly earnings of female and male employees, by occupation, age group, and persons with disabilities |
| SDG 9: Industry, Innovation, and Infrastructure | Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes | Indicator 9.4.1: CO2 emission per unit of value added |
1. Which SDGs are addressed or connected to the issues highlighted in the article?
SDG 12: Responsible Consumption and Production
The article discusses the circular economy as a solution for online retailers to reduce waste and enhance environmental stewardship while increasing profits. This aligns with the goal of responsible consumption and production.
SDG 8: Decent Work and Economic Growth
The article mentions the need for retailers to implement circular solutions to meet consumer demands and avoid alienating their customers. This relates to the target of promoting development-oriented policies that support job creation, entrepreneurship, and innovation.
SDG 9: Industry, Innovation, and Infrastructure
The article highlights the need for retailers to build extra flexibility in their supply chain systems and tap into partner ecosystems to leverage specialized, outsourced help. This connects to the target of upgrading infrastructure and retrofitting industries to make them sustainable and adopting clean technologies.
2. What specific targets under those SDGs can be identified based on the article’s content?
Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling, and reuse
The article emphasizes the importance of getting returned inventory back into stock for resale instead of sending it to landfill. This aligns with the target of reducing waste generation through recycling and reuse.
Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation
The article mentions the need for retailers to implement circular solutions to meet consumer demands and avoid alienating their customers. This relates to the target of promoting policies that support job creation, entrepreneurship, and innovation.
Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes
The article highlights the need for retailers to build extra flexibility in their supply chain systems and tap into partner ecosystems to leverage specialized, outsourced help. This connects to the target of upgrading infrastructure and adopting sustainable technologies.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
The article does not explicitly mention any indicators related to the identified targets. However, potential indicators that can be used to measure progress towards these targets include:
– Indicator 12.5.1: National recycling rate, tons of material recycled: This indicator can measure the progress in reducing waste generation through recycling and reuse.
– Indicator 8.3.1: Average hourly earnings of female and male employees, by occupation, age group, and persons with disabilities: This indicator can measure the progress in promoting decent job creation and supporting productive activities.
– Indicator 9.4.1: CO2 emission per unit of value added: This indicator can measure the progress in upgrading infrastructure and adopting clean technologies.
These indicators can provide quantitative data to assess the effectiveness of circular solutions in reducing waste, promoting job creation, and improving sustainability in the retail industry.
4. SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 12: Responsible Consumption and Production | Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling, and reuse | Indicator 12.5.1: National recycling rate, tons of material recycled |
| SDG 8: Decent Work and Economic Growth | Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation | Indicator 8.3.1: Average hourly earnings of female and male employees, by occupation, age group, and persons with disabilities |
| SDG 9: Industry, Innovation, and Infrastructure | Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes | Indicator 9.4.1: CO2 emission per unit of value added |
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: sdcexec.com
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