Supply chain management is at the heart of the circular economy

With the world’s population rising and consumers’ demands starting to exceed available resources, the manufacturing sector puts more and more emphasis on sustainability. However, the backbone of sustainable manufacturing of products consists of a stable and efficient supply chain.  Material supplier and supply chain solutions provider – thyssenkrupp Materials UK, helps manufacturers make their products more sustainable by supporting their supply chains in the most flexible and sustainable ways, including designing out waste and reducing the environmental impact of their products.

The term circular economy is becoming more frequently used by manufacturers and means reusing and recycling products as much as possible, leading to less waste and a better environment. Manufacturing companies have played a significant role in improving standards of living worldwide, and thyssenkrupp Materials UK is proud to support the supply chains amongst various industries – from aerospace and defence to automotive, medical, construction and catering. The business has also officially committed to becoming carbon neutral by 2030 as part of the holding company – thyssenkrupp Materials Services and supported this claim by introducing projects such as waste management, energy monitoring and efficiency improvements, and adoption of renewable energy resources throughout its sites in the UK.

As an expert in material supply and supply chain management, thyssenkrupp Materials UK can play an integral part in reducing material use, redesigning materials, products, and services to be less resource intensive, and recapturing “waste” as a resource to manufacture new materials and products. Billy Kingsbury, CEO at thyssenkrupp Materials UK, explains: “We, as a business, seek to reduce and eliminate different types of waste through engaging our customers on designing products for longevity and recycling, and optimising the production processes. We also remain focused on improving all kinds of packaging, material waste and logistics footprint.”

Metal, such as steel, can be recycled repeatedly, and when it is recycled, it saves significant amounts of primary raw materials, energy, and CO2. Under a circular economy, materials are not discarded after they are used but brought back into the economy through a variety of means. At thyssenkrupp Materials UK, the teams help manufacturers rethink how they design, produce, and ship products – away from the old way of the linear economy (take, make, waste) to a more regenerative process. This approach has been tried in different contexts, mainly involving aluminium special extrusion products for construction and architecture customers. By aggregating the demand of other industries, such as aerospace, thyssenkrupp Materials UK also supports the global supply chains, and helps manufacturers overcome the challenge of having little influence as just one customer buying from a supplier.

“Collaboration is essential for operating sustainably and creating a circular economy,” says Billy Kingsbury. “We work closely with our customers and suppliers to create a partnership where we all become more efficient and sustainable. We are developing a shared view within the supply chain of the direction and the action needed to create change and achieve our sustainability targets. Businesses, as we know, are often complex, and this is where we can support: working out how to bring everything together – from material selection and supply to final delivery.”

However, to achieve tangible results, thyssenkrupp Materials UK has invested in developing digital tools that can be customised based on the customers’ or projects’ requirements. The digital tools provide real-time data on the material and product traceability, quality management and efficiency. This has allowed the business to create a paperless factory for its fabrication capability and ensure on-time delivery with full batch traceability and quality measurements recorded on a tablet and visible to customers via a digital portal. The company further foresees digitalisation as the means of achieving sustainability and is planning on launching a carbon footprint calculator tool next year to increase visibility along the entire supply chain.

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