Topic 3 Steps for the establishment of a circular value network

The best collaborations – and the best results – can come from moving away from traditional transactional supply chain relationships, towards a shared vision and mutual opportunities to achieve sustainable, long-term goals.

∙Establish a clear leadership to guide the process and to involve the organization to create support.

∙Create shared values to inspire innovation and build trust.

Mapping the key stakeholders and the subsequent material and financial flows allows identification of closed loops that deliver the greatest value, giving the business case added strength and weight.

  • Map your value chain to better understand the whole value chain and the identification of win-win situations regarding environmental, economic and social benefits (i.e., material, financial, commercial and contractual issues) to achieve long term sustainability goals.
  • Identify stakeholder groups with aligned interests that can contribute to realize that value.
  • Prioritize and involve stakeholders that create value.

Transforming a value chain involves commitment from a wide range of stakeholders. It is essential that (a) thorough stakeholder communications and engagement plan are in place from the outset. The number and complexity of stakeholders increases in circular approach, in comparison to a linear approach, therefore defining clear responsibilities and roles within a co-creative process is essential.

  • Establish and agree on these responsibilities and commitments at early stages to avoid misunderstandings and other potential issues.
  • Establish non-traditional contracting mechanisms.
  • Establish incentive schemes for collaboration.
  • Establish materials and data tracking mechanisms.

Understanding the motivations and communications needs of each stakeholder enables the creation of a strong and compelling narrative for each audience, strengthening commitments and relationships.

  • Define a communication plan with clear and concise messages to explain and guarantee the understanding of measurable benefits of the collaboration for all partners, beyond agreed responsibilities and commitments.
  • Adapt the messages to different stakeholder groups.
  • Establish open communication channels to facilitate coordination, transparency and trust.