The concept of circular economy is gaining traction as people become more conscious of their environmental impact. Businesses have a critical role to play in transitioning to a circular economy by reducing waste, using resources more efficiently, and designing products that can be reused, repaired, or recycled. If you are a buyer looking to integrate circular economy principles into your procurement process, here are some tips to help you add circular economy to your RFQ and a sample specification and evaluation model.

What is Circular economy?

Circular economy is an economic model that aims to reduce waste and promote sustainability by keeping resources in use for as long as possible. It is based on the idea that the traditional linear economic model of “take, make, use, and dispose” is not sustainable in the long term and creates a significant negative impact on the environment.

In a circular economy, the focus is on designing products that can be reused, repaired, or recycled, as well as using resources more efficiently. This requires a shift away from the traditional “ownership” model of consumption, towards more collaborative and sharing-based models, such as product leasing, sharing platforms, and product-service systems.

Circular economy also emphasizes the importance of reducing waste and pollution throughout the entire lifecycle of a product, including the extraction of raw materials, the production process, the distribution and consumption of the product, and its eventual disposal or recycling. This involves the use of sustainable and renewable energy sources, as well as the adoption of cleaner production methods and the development of closed-loop supply chains.

The benefits of circular economy are numerous and significant, including reduced resource consumption, lower greenhouse gas emissions, improved resource security, job creation, and increased economic growth. It is also seen as a crucial element in achieving the goals of sustainable development, including poverty reduction, social equity, and environmental protection.

Overall, circular economy represents a paradigm shift in the way we think about economic growth and sustainability, and it is a vital approach to creating a more sustainable and resilient future for both people and the planet.

Specify your requirements for recycled content

One way to encourage suppliers to incorporate circular economy principles into their products is to specify the minimum amount of recycled content that is required. For example, if you are looking for packaging materials, you could request that the supplier use a minimum of 50% recycled content. This not only promotes the use of recycled materials but also creates a market for recycled products, driving demand for recycled materials.

Include requirements for product durability and repairability

Products that are designed to last longer and can be easily repaired have a longer lifespan and reduce the need for new products. When sending RFQs, specify your requirements for product durability and repairability. For example, you could request that electronics have a minimum expected lifespan of five years and can be easily repaired with commonly available parts.

Request that suppliers provide a take-back program

A take-back program allows products to be returned to the supplier at the end of their useful life for recycling or disposal. This helps ensure that products are recycled or disposed of properly, reducing waste and the environmental impact of the product. When sending RFQs, request that suppliers provide a take-back program for their products.

Encourage the use of renewable energy

The use of renewable energy reduces the environmental impact of production processes and supports the transition to a circular economy. When sending RFQs, request that suppliers use renewable energy sources for their production processes. This could include using solar or wind energy to power factories or using biofuels instead of fossil fuels for transportation.

Consider the environmental impact of transportation

Transportation of goods is a significant source of greenhouse gas emissions. When sending RFQs, consider the environmental impact of transportation and request that suppliers use the most environmentally friendly mode of transportation available. For example, if the supplier is located nearby, you could request that they deliver the goods by bike or electric vehicle instead of a traditional delivery truck.

Example of a specification supporting Circular economy 

Specifications (office furniture):

in order to add circular economy to your RFQ, please find an inspirational example below.

Material Use:

• Recycled Content: All furniture must contain a minimum of 30% recycled material, preferably post-consumer. Please specify the percentage and source of recycled materials used in your products.
• Sustainable Materials: Use of renewable or sustainably sourced materials is encouraged. Certification from recognized bodies (e.g., FSC for wood) must be included.

Design for Longevity and Durability:

• Products should be designed for a minimum lifespan of 10 years. Provide details on design elements that ensure durability and longevity.
• Include information on any design awards or recognitions related to sustainability or innovation.

Modularity and Adaptability:

• Furniture must be modular, allowing for easy repair, refurbishment, and adaptability to different configurations. Details on modularity aspects should be provided.
• Components should be easily replaceable. Provide a list of components along with information on how they can be individually replaced or upgraded.

End-of-Life Strategy:

• Take-back Program: Outline your take-back or recycling program for products at the end of their life cycle.
• Product Stewardship: Describe any initiatives or programs that support product recovery, reuse, or recycling. Explain any additional efforts or initiatives that support the circular economy, such as reverse logistics, leasing models, or refurbishment services.

Certifications and Compliance:

• Include all relevant environmental and sustainability certifications (e.g., Cradle to Cradle, Blue Angel, Green Seal).
• Detail compliance with international environmental standards and regulations.

Innovation in Circular Economy:

• Highlight any innovative practices or technologies used in the manufacturing process that contribute to circular economy objectives.

Add circular economy to your RFQ – evaluation model

in order to add circular economy to your RFQ, please find an inspirational example of an offer evaluation model for office furniture that aligns with circular economy specifications and involves defining criteria that reflect the sustainability and practicality of the products offered. This model will help you systematically assess and compare the proposals received in response to your RFQ. Here’s a structured approach to building this evaluation model:

1. Evaluation Criteria Definition

First, break down the requirements into specific, measurable criteria that reflect both the RFQ and your sustainability goals. Assign points or weightings to each criterion based on its importance to your organization’s objectives.

Criteria Categories:

• Material Sourcing and Content (25%)
  • Percentage of recycled materials
  • Use of renewable or sustainably sourced materials
• Design and Durability (20%)
  • Modularity and adaptability for repair or reconfiguration
  • Demonstrated durability and lifespan
• End-of-Life Management (15%)
  • Take-back programs
  • Recyclability and ease of disassembly
• Certifications and Compliance (15%)
  • Environmental certifications (e.g., Cradle to Cradle, FSC)
  • Compliance with relevant sustainability standards
  • CO2 free electricity used during operations.
• Innovation and Additional Features (10%)
  • Innovative practices in manufacturing
  • Additional features supporting circular economy (e.g., leasing models, repair services)
• Cost Effectiveness (15%)
  • Overall cost relative to the lifecycle and sustainability benefits

2. Scoring System

Develop a scoring system where each proposal can be rated against the criteria. This can be a numerical system (e.g., 1-10) where higher scores reflect better alignment with the specified requirements.

3. Weighted Scoring

Apply the predetermined weightings to the scores for each criterion to calculate a total score for each proposal. This weighted scoring system ensures that the most important factors have the greatest impact on the final decision.

4. Vendor Presentations and Samples

Consider requiring vendors to present their products and provide samples or detailed case studies. This step can help clarify how well their offerings meet the specified criteria and can affect the final scores.

5. Review and Adjustment

Allow room for adjustment in the scoring based on team reviews and discussions. Sometimes, practical insights during vendor presentations or additional information provided by the suppliers can influence the initial assessments.

6. Final Selection

The vendor with the highest total score, indicating the best overall alignment with your circular economy specifications and value for money, should be selected.

    

This model ensures a balanced approach to evaluating offers, prioritizing sustainability while considering practical and economic aspects.

Conclusion – add circular economy to your RFQ

In conclusion, integrating circular economy principles into your procurement process can help reduce waste and support the transition to a more sustainable economy. By specifying requirements for recycled content, product durability and repairability, take-back programs, renewable energy, and environmentally friendly transportation, you can send RFQs that encourage suppliers to incorporate circular economy principles into their products and processes.

Learn more from Dr Aurora Dawn Benton on how to add circular economy to your RFQ.

Note: Illustration to the blogpost “Add circular economy to your RFQ” was created with DALL-E on April 21, 2024.

Information in Swedish about Learn How to Source’s courses can be found at Utbildning Inköp.