(BSOM046)-Managing Operations and the Supply Chain: Exploring the Circular Economy Model at Philips

Assignment 2 – Managing Operations and the
Supply Chain
Module: AS2 BSOM046-SUMAI 17/18 - Managing Operations and the Supply Chain
Local tutor: Mr. Gadekar Ashish
Prepared by: Kingsley Seetharamdoo
Submitted on: 14th February 2018
Scholar ID: 18417731
School: Amity Global Business School, Mauritius
Word count: 2537 words
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Table of contents
1. Description of the organisation.................................................................................3
2. Theoretical aspect.................................................................................................................3
3. Main drivers of the circular economy...............................................................................3-4
4. Importance of circular model...............................................................................................4
5. Environmental benefits........................................................................................................4
6. Social benefits......................................................................................................................5
7. Economic benefits...........................................................................................5
8. The role of circular supply chain in supporting the circular economy.............................5-6
9. Driving forces of the circular supply chain..........................................................................6
10. Practical aspect..................................................................................................................6-7
11. Benefits.............................................................................................................................7-8
12. Reference list...................................................................................................................9-10
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1. Description of the organisation
This report shows how Philips have used the model of circular economy by developing LED
lights and various healthcare products. The report also states the benefit of the circular
economy and the various advantages of applying it. Philips have known to adopt circular
lightning in order to achieve instant savings and minimize the carbon footprint. The circular
lightning also means that the products are designed in a fully sustainable way. The lightning
process can also be reused and improved where all the supplies and tools can be returned for
the purpose of recycling and purposing. The benefits of the circular economy are the creation
of new green industries and jobs, less pollution that enters the life support system of the earth
and avoidance of any kind of damage in the environment. Therefore, it can be said that the
circular economy is the future where the model is based on the reduction of the extraction of
the raw materials.
2. Theoretical aspect
The circular economy is a kind of economic system which aims at minimizing wastes along
with making most of the resources. In case of the circular system, the waste, emission,
resource input and also the leakage of energy are reduced by being sluggish, closing and by
lowering energy and the product loops (Lieder and Rashid 2016). The circular economy
known to focus on certain areas such as design thinking, product life extension, recycling and
system thinking. The circular model known to build on economic, natural as well as social
capital. The circular economy is created on the basis of three principles which are scheming
out pollution and waste, maintaining materials and products that are utilised and recreating
the natural process. In accordance to circular economy, the economic activities are known to
create and rebuild the overall health of the process. The notion of circular economy has been
known to recognize the significance associated with the economy which requires functioning
efficiently at all the scales. Transition to the circular economy will need a systematic shift
that is built on long term resilience, generating business as well as economic opportunities
and providing environmental as well as societal benefits. The circular economy is the
economic process where the services and products are identified to be traded in closing cycles
or loops. The main aim of the circular economy is establishing a process that permits for
longer life, most favourable reuse, remanufacturing and restoration as well as product
recycling.
3. Key drivers of the circular economy
The key drivers of the circular economy are alteration of the production chains and
consumption trends. The present regulatory system is known to be sectorial and comprises of
one-sided orientation of risk which is known to hamper any kind of new opportunities.
Therefore, there is a need for the policies which will work for the issues. One of the major
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