As a Supply Chain Manager, everybody is expecting you to perform miracles and save your company. You are expected to come up with some great programs. Would one of the Top Ten SCM Innovations make your CEO happy? Let's try instead and give you some simpler ideas.
Manufacturers can create value, cut costs, and reduce exposure to rapidly changing commodity prices by improving their resource productivity. This means using fewer resources for each unit of output. SCM managers are looking for opportunities beyond their own operations. Collaboration with suppliers and customers can keep used products, components, and materials in circulation. Hence the term "Supply Circle".

Economic growth in emerging markets is creating a huge demand for resources. Energy, water, minerals and steel contribute to higher commodity prices. It might not be temporary either. This puts a pressure on profits. Companies must learn to better utilize resources. Companies are exploring business models utilizing "Supply Circles".

Let's start out with recycling and returns. The Global Supply Chain Forum considers "returns" as one of the eight key processes that make up the core of Supply Chain Management. Parts suppliers can refurbish and re-manufacturer. Manufacturers can reuse parts. Retailers can reuse products. End users can repair and maintain (remember, replacement parts and repairs are a profit center too).

Optimize market by collecting: (1) Explore new recovery techniques; (2) Develop markets for recovered materials. A great example of this is happening right now in a remote section of the Adirondack Mountains called Tahawus. Iron deposits were first found here in 1826, but because of the remote location and impurities of titanium dioxide, the mine closed. In 1940 a new mine opened for the purpose of obtaining the titanium dioxide. A rail line was brought in from North Creek in 1944. Forty million tons of titanium were extracted at the National Lead Industries' mines before operations ceased in 1989. Tailings (leftovers) from the operation can be used to extract rare earth elements and there are millions of tons of tailings left from decades of mining since World War II. A revitalized railroad will take these mining remnants out of the Adirondacks to companies where the tailings can be refined into rare earths used by high-tech and manufacturing companies.

How do we do it? In upstream production we can optimize by rethinking resource ownership and developing sources of supply via return markets and collecting. In downstream production we can optimize by facilitating return of materials. If there is no dominant owner, we can exercise our influence. We can consider new business models like lease rather than sell