The manufacturing industry in Victoria is taking giant strides towards solving the challenge of waste by collaborating with the Department of Management at the Monash Business School. In doing so, it is envisaged that there will be the development and implementation of sustainable strategies using circular economy principles that will waste little or no resources. Research by Monash University shows businesses that adopt the practice of the circular economy have reduced manufacturing waste by up to 65%.
The Waste Issue in Victoria’s Manufacturing Industry
Australia produces 13 million tonnes of manufacturing waste annually, of which 39% is derived from Victoria. Southeast Melbourne produces approximately 500,000 tonnes of manufacturing waste yearly. These astounding figures further confirm the dire need for waste reduction strategies at industry levels.
Addressing these issues, the manufacturing industry in Victoria has come in partnership with Monash Business School to enhance resource efficiency, reduce waste, and the environmental impacts that come with production and consumption activities. This partnership was part of a wider project that has been led by the University’s Professor Amrik Sohal for three years in an attempt to support the switch to a circular economy across diverse industries.
Key Research Findings and Industry Involvement
In this project, manufacturers from plastics, textiles, general engineering, and food, in addition to representations of industry associations and local government, partnered with the Monash research team. In so doing, working in collaboration with the manufacturers, options and opportunities for transition to the CE were developed along with capacity building in the industry for sustainable behavior.
In the study, the researchers interviewed 25 businesses that were already practicing CE and determined what strategies are successful for wider application. It emerged that businesses could cut down on a lot of waste while increasing resource efficiency by applying circular practices.
One of the leading success stories of this study is Jardan, an Australian furniture company. Jardan reduced manufacturing waste by 65% after embedding the strategies of CE. The company achieved this by procuring more than 75% of its materials from local suppliers, designing its products for longevity, and reducing energy use by 17%. Indeed, this is a practical example of how businesses can benefit tangibly from embracing the concept of the circular economy.
Manufacturers’ Circular Economy Recommendations
Several recommendations are given by the researchers of Monash University to integrate a circular economic model into the operational activities of businesses. Specifically:
Incorporate Circularity in Product Design: it is at the product design phase that alternative or recycled materials should be applied. Because sustainable materials will already be used at the front end, it will mean the business has contributed less waste and made the product more accessible to be recycled upon the end of its life.
Think Systemically: Manufacturing firms will need to circularize the whole value chain. This is about the design of supply chains where resources are reused and recycled instead of going into a landfill. In this way, circular supply chains are more sustainable and contribute towards an overall reduction in the waste footprint of a firm.
Ensure Financial Viability: The financial models that would need to support the practices of CE should be viable for businesses to implement these practices. The companies should make sure that the circular strategies lead to cost savings and long-term profitability.
Be Transparent: Companies should be forthright and transparent about their efforts in CE. It tills confidence with customers, employees, and suppliers and ensures accountability regarding the implementation of circular practices.
Value Communication: Stakeholders being able to visualize value will be one of the main successes in the adopting of the CE practice. The values of the CEpractice-cost savings, waste reduction, sustainability-need to be communicated down the line by the firms to make sure that everyone understands their importance in the process.
Network: The key to success with CE practices involves networking. Businesses should be connected with organizations that have in place successful CE strategies so that best practices and others’ experiences are shared.
Shifting Mindsets and Changing Behaviour to Circular Economy
Once the businesses understood the economic benefits, then they became more willing to adopt the CE practices. Workshops and seminars conducted by the Monash research team have helped explain these economic benefits to participants. Indeed, a survey at the end of the workshop showed how such an attitude and behavioral change of business can contribute to speeding up the circle economy in manufacturing.
As this would be a step likely to affect not just Victoria, but even the manufacturing industry in Australia as a whole, for a considerable time to come, any enterprise that learns the economic and environmental dividends from the adoption of CE practices will help bring about a drastic reduction in waste and enhanced sustainability in the industry.
The Way Ahead
A collaboration by Victoria’s manufacturing sector and Monash Business School opens ways toward making the future of the industry more sustainable and resource-efficient. It can be very assisting for the manufacturers to reduce waste to a minimum, cut costs, and consequently minimize environmental footprint by taking into consideration the guiding principles of the circular economy.
The recommendations of Monash University, therefore, point the way in which businesses could make the transition to circular economy practices. Embedding circularity into product design, reimagining supply chains, financial viability, and taking to collaboration will enable a business to move toward a sustainable manufacturing model.
With continued partnership, it is envisioned that there will be more businesses embracing the circular economy and, therefore, huge reduction in wastes manufactured across Victoria and beyond.
Source:
Circular Economy Strategies for Waste Reduction by Monash University Research
Credits: This video is the courtesy of Monash Business School and the Department of Management, who provided the research in collaboration with Victoria’s manufacturing sector.