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The Circular Economy & Sustainability – Meeting the Challenges of Our Decade
December 20, 2022 Blog


By: Suneel Patil – Solution Architect – Enterprise & Cloud Applications at DXC Technology

The challenges of the 21st century are being defined and solved in the coming decade against the backdrop of a once-in-a-century pandemic, increasing climate change events and rising geopolitical tensions.

No longer is the Board Room solely focused on the top line and bottom line of the company – the green line is emerging as one of the most discussed topics of our generation. Previously confined to the Risk Management department or CFO, organisations are rapidly shifting their culture and purpose centred around Sustainability and ESG. The impact on manufacturers can provide both an opportunity and a challenge as changing business models and processes to record, report and act on ESG initiatives continue to place additional demands on the business.

Digitally Circular

According to Gartner, by 2029, supply chains will be outlawed from producing wastage since it would be deemed unacceptable by customers and many governments.

Further, DXC observes that organisations are adopting zero-waste strategies by extending the value chain beyond a product sale by looking deeper into customer usage and subsequent disposal at a product’s end of life. This is leading to changes in business, product and service models to capture and add further value downstream from the originally produced goods. Let’s explore the strategies DXC proposes for a circular and sustainable economy:

  1. The Concept of a Circular Economy
    Renewable, recycled, or highly recyclable resources are employed in manufacturing in a circular economy. Manufacturers who use products of circularity can save money on raw materials. They may get the materials they need without using precious resources; rather, they use scraps and recyclables from other operations. Thus, waste is a resource rather than a cost. High rates of original-quality material and component recovery will help circularity, according to the World Bank.
  2. Product-as-a-Service (PaaS)
    The customer rents a service for a set period of time but the vendor keeps the physical goods. The born-circular design places more importance on performance than size, increasing both efficiency and lifespan. They are more resilient because they are able to save money on resources and shield themselves from fluctuations in material prices by keeping a tight grip on production. Both legal and financial pressures have been placed on the supplier to switch to more secure waste management practices.
  3. Recuperation of Resources
    The born-circular industry has a vested financial interest in realising the full economic potential of its product. Contractual obligations, refundable deposits, and Product-as-a-Service models are just a few ways that they encourage customers to return things. First-mile logistics, or the process of moving a product from its present user to its next usage cycle via a collecting and value-adding point, is a new facet introduced by the circular economy. Companies that understand how to blend forward and return logistics will be more competitive than those that rely solely on a linear business strategy. The primary goal of its design is to facilitate efficient and effortless material recovery.

In a few years, there’s a possibility that manufacturers won’t be able to compete if they’re not capturing the opportunities that the circular economy can provide. It is not as simple as taking back and processing your waste. Consider if your systems and processes today can support reverse logistics and warehousing of returned/recycled goods. Are your product design and production capabilities geared to support these new business models?

The team at DXC Technology helps manufacturers consider these and more by helping assess and transform your processes and underlying systems to adopt these new systems and processes into core ERP and supporting platforms.

Reach out to DXC today and help your company grow into circularity and sustainability without sacrificing its competitive edge. Click on the link below to find out more.

Find out more about the circular economy and how you can achieve it by checking out this interactive image:


Suneel Patil – Solution Architect – Enterprise & Cloud Applications at DXC Technology

Suneel Madhukar Patil is a Solution Architect for Enterprise & Cloud Applications at DXC Technology. He is a lead proponent for SAP-based Enterprise envisioning and has led multiple engagements in Southeast Asia for process and system assessment, application portfolio rationalization, and implementation roadmap planning. Suneel is responsible for SAP practice setup in Southeast Asia and is a Subject Matter Expert for SAP-based Integrated Business Planning and Consolidation. He has significant experience in Enterprise Planning & Performance Management with Consolidation (Statutory & Management), Business Planning, Strategy Management, Disclosure Management, and Business Intelligence Reporting platforms. Suneel has led multi-cultural teams across various projects in various countries and delivered 17 engagements and 100+ proposals with a 60% win rate. He possesses technical skills in SAP FPSL, S/4 HANA, Real Time Consolidation (RTC), SAP BPC 10.1 on HANA, SAP BPC (NW & MS), SEM-BCS, BOBJ, SSM, Disclosure Management, BI-IP, SEM-BPS, BI, ABAP Programming, Tagetik – Consolidation & Planning, Anaplan, Oracle EPBCS, and FCCS.