REVERSE FLOW MANAGEMENT IN A CIRCULAR ECONOMY

Abstract

The study is devoted to the relationship between reverse material flow management and the concept of a circular economy. It describes the ways to use reverse streams to further recover, reuse or recycle products and their components. The use of reverse flows to close the value chain of the product has been studied. The latest research in the field of circular economy and the place of reverse flows in this concept were analyzed, the common and distinctive features of these concepts are given. The urgency of implementing circular business models at the enterprise to increase resource efficiency, lower the production costs, increase the level of environmental and social responsibility and avoid harmful effects on the environment is emphasized. The scheme of functioning of return flows in the conditions of circular economy is given, the basic categories of return flows and the corresponding circular decisions are characterized, examples of products and business models within each category of return flows are given. The step-by-step process of reverse flow management is illustrated, taking into account the peculiarities of the implementation of circular business models. The importance of involving the consumer in the return of products and their components at the end of their service life, as well as the development of a loyal return policy is substantiated based on the international company experience. Potential barriers to reverse flow management in a circular economy have been identified, and strategic challenges for managers in reverse logistics design, sustainable product design for future recovery, and reverse flow management infrastructure are described. Ways to optimize reverse logistics to improve resource efficiency of production and reduce the cost of primary raw materials are identified. The importance of cloud technologies and automation in the process of reverse flow management is emphasized, the key advantages of using these technologies in reverse logistics are given. Conclusions on the effective combination of reverse flow management and implementation of circular economy models are formed.