One of the first issues that entrepreneurs tend to prioritize in unstable scenarios is cost reduction. But do you agree that cleaning up bills shouldn’t just be an attitude at critical times? Does it make sense to think that the business really prospers as management gets smarter and sees the big picture? And how do you implement this vision in your processes? One of the ways this process can be achieved is through the circular economy.
The circular economy as an alternative for cost reduction
Considering the Circular Economy as a tool for the production process is a way to make better use of available resources, convey concern about the quality of what is offered to the consumer and understand the actions that can harm the profitability of the company in the long run term.
Instead of extracting, producing, using and discarding (often polluting the environment), finding alternatives to compensate for some stage of your process already has a positive impact. Does your company really need virgin raw materials? Have you ever stopped to put the pros and cons of this linear format at the tip of your pencil?
How this process works in Korin
This circular economy process is the case for Korin, which has several products in its portfolio and, consequently, a large number of packages. To reduce the size of the negative impact, Reginaldo’s management sought to compensate them with the support of a certifying entity.
By betting on an initiative that favors the recycling chain, the company ensures the correct disposal of waste and connects with increasingly conscious consumers. Do you remember that people are more concerned with their role and their actions? However, a 2020 study prepared by PWC showed that 43% of those surveyed expect companies to be responsible for the environmental impact caused.
That need is also knocking on your door. The customer yearns for innovative and long-lasting products and, to serve the public, it is necessary to better understand how to adapt to the circular model. More so, how your competitors are moving in this direction.
Smart management is not dependent on large investments – it actually enables you to increase your revenue from operational efficiencies and new business opportunities by reviewing your resources, as you will see throughout the “Present Future” case study.