Supply Chain to Supply Circle I CIO Talk Network

Why It Matters

Circular supply‑chain models align cost reduction with ESG goals, turning sustainability into a competitive advantage and reshaping supplier relationships across industries.

Key Takeaways

• Define "supply circle" as closed-loop material reuse and recycling.
• Profitability and sustainability are both drivers; cost savings enable circularity.
• Industry adoption varies; mature sectors like printing lead, others lag.
• Technology—real-time logistics and IT systems—optimizes circular supply chains.
• Collaboration across partners essential to shift from squeezing margins to shared profit.

Summary

The CIO Talk Radio episode introduced the emerging concept of a "supply circle," a closed‑loop model where raw materials, components and packaging are reclaimed, re‑processed, and fed back into production. Hosts Rick Blasin and Brian Ball explored how this paradigm extends traditional supply‑chain thinking toward sustainability and cost efficiency.

Key insights included a practical definition of the supply circle, the dual motivation of profit and environmental stewardship, and real‑world examples such as Xerox cartridge refilling, steel scrap recycling, and emerging tire‑recycling initiatives. The discussion highlighted that while some industries already embed circular practices, others remain in a sandbox phase, waiting for economic or regulatory triggers.

Notable remarks underscored the role of technology: real‑time logistics, directed put‑away, and advanced modeling enable firms to minimize empty miles, optimize warehouse moves, and embed recyclability into product design. Brian cited the food sector’s long‑standing efficiency measures—full‑truck loads, net‑weight packaging—as precursors to today’s ESG‑driven strategies.

The panel concluded that widespread adoption hinges on cross‑partner collaboration, shifting from margin‑squeezing to shared value creation. Companies that integrate circularity into design, procurement and IT can achieve competitive advantage, lower carbon footprints, and meet growing stakeholder expectations.

Original Description

In the new global economy, how can manufacturers create value, cut costs, and reduce their exposure to volatile commodity price swings that squeeze profits? Perhaps by collaborating with suppliers and customers to extend the lifecycle of products, components, and materials while rethinking their business model to retain ownership of recoverable materials and then recycling them back into use. This suggests a supply circle rather than a supply chain. While it looks great as a hypothesis, is this concept practical? Just how do you pull such strategies off? And just where, around this supply circle, can IT intervene or be leveraged to make it happen?

In this CIO Talk Network conversation, Rick D. Blasgen, President and CEO of the Council of Supply Chain Management Professionals (CSCMP), and Bryan Ball, Vice President and Principal Analyst for Supply Chain Management at Aberdeen Group, join host Sanjog Aul to explore what it takes to move from a traditional supply chain to a circular model.

They discuss how to:

Design supply circles that are both profitable and sustainable

Build real collaboration across suppliers, manufacturers, and customers

Use IT to create visibility, reduce waste, and eliminate empty miles

Deal with volatility in commodities, energy, and global regulations

Rethink the role of the CIO and IT in supply chain innovation

Chapters:

00:00 Introduction and guest intros

01:29 What is a "supply circle"

03:37 Profit, PR, and sustainability drivers

05:18 Existing examples of recycling and circular practices

06:13 Is this mainstream or still experimental

08:35 Sustainability, corporate directives, and industry differences

10:08 Logistics and why it was green before green was cool

12:14 Role of IT in routing, backhauls, and warehouse efficiency

15:16 Collaboration, intent, and helping partners win

18:23 Real world collaboration examples in auto and retail

21:22 Why supply chain is invisible to most consumers

23:39 Doing more with less and driving out inefficiency

24:33 Sharing value, gain sharing, and incentive models

27:35 Boundaries between buying, sales, and supply chain teams

29:31 Volatility, hedging, and protecting against shocks

30:26 Globalization, China labor, energy, and trade challenges

32:41 How supply chain and IT leaders partner in practice

37:29 IT leadership, deployment models, and big data

41:42 Industries that benefit most from circular models

43:47 Global standards, education, and talent

46:40 Final advice for CIOs and IT leaders

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