Playing a role in the circular economy can make a massive difference, to a retailer’s profits, its brand and the wider world. Learn how you can reach your sustainability targets with bespoke software development.
Waste = Food. This idea lies at the heart of a design concept outlined by architect William McDonough and chemist Michael Braungart in their 2002 book, Cradle to Cradle. Remaking the Way We Make Things. The model illustrates how systems can be designed to ensure that waste is not an end product but a resource that feeds back into the cycle, mimicking natural ecosystems where everything has a purpose and nothing goes to waste.
Today, this idea of a ‘circular economy’ has been adopted by retailers as part of their sustainability efforts to minimise the use of energy and resources, whilst increasing accountability and social responsibility. You may well have seen the results in action, in-store. Clothing retailer H+M for example, launched its Garment Collecting programme in 2013, allowing customers to take unwanted clothing and textiles to their store and get a voucher to use towards their next purchase in return. IKEA offers a similar service for its products.
Regenerative business
Behind the scenes, circular economy software and solutions have also been implemented by retailers to improve product lifecycle management and supply chain sustainability. Thanks to systems like these, the circular economy is now an entrenched part of many organisations’ operations. But there’s a newer buzzphrase that’s gaining traction as a sustainability goal: regenerative business.
In a 2015 paper, John Fuller, founder of the Capital Institute, devised the Regenerative Economics framework. Its eight principles aim to address flaws in economic theories that entrench environmental damage and social inequality. By mimicking processes found in the natural world, the paper outlines an approach that maximises stakeholder wellbeing for the long term via resilience, fairness and sustainability.
Change at every level
Becoming a regenerative retail business means making changes at every level. The examples of H+M and IKEA demonstrate how involving consumers can make a positive difference and raise awareness of the importance of sustainability practices. However, it’s the underlying mechanics of a retailer – the software and systems powering processes – that must be addressed, upgraded or overhauled in order to spur real change and which will allow a retailer to meet its sustainability goals.
How can you get started? We’ve outlined a few examples of business systems which can be implemented via bespoke software development. Taking a tailored approach means platforms can be designed and deployed to meet the needs of a retailer, its workforce and its customers – with benefits for all.
Circular design software
Circular design software is an overarching term for tools that help designers, engineers and businesses create products and systems that align with circular economy principles. These promote reuse, minimise waste of resources and are created for longevity, recyclability and sustainability.
Lifecycle assessment systems, for instance, evaluate environmental impacts throughout a product’s life cycle. They might assess the effect of a project or product lifecycle by measuring or projecting the effects on things like biodiversity or air and water quality. This software is able to run predictions on potential impacts and create reports to inform better decision making.
Product traceability platforms
Product traceability platforms will track different elements of a product, such as history, authenticity, ownership and sustainability. A luxury fashion retailer, for instance, might add digital codes to its clothing to ensure authenticity and reduce instances of counterfeiting. A food retailer, meanwhile, might use product traceability platforms to ensure freshness of food and coordinate any product recalls.
In addition to having insight into a retailer’s operations, this software also needs to tap into compliance and regulations of any territories in which an organisation does business, to ensure compliance with environmental standards and legislation.
These systems are often integrated with thousands of IoT tracking devices. RFID (Radio Frequency Identification) tags, for instance, can be added to products or materials , enabling real-time data to be sent to a product traceability platform. QR codes may also be used to identify orders and products when they are scanned at checkpoints.
Supply chain traceability software
Rather than focussing on individual products, supply chain traceability software tracks the entire supply chain, from the sourcing and movement of raw materials and components, to manufacturing processes, transportation, distribution and sales.
This type of software is dependent on collaboration between stakeholders across the supply chain, as data must be shared between these parties to ensure visibility and transparency of operations. Blockchain can be integrated into supply chain systems for tamper-proof records of different stages of the product lifecycle. Transactions – such as the acquisition of raw materials, different stages of the production process, shipping, or a product’s arrival at a warehouse – can be time-stamped and stored on a digital ledger. This prevents data from being altered or deleted, minimising fraud, unethical practices and inaccurate information.
Greater visibility of the product lifecycle and supply chains can help retailers identify areas of improvement, driving efficiencies (such as speeding up processes at customs), reducing waste and ensuring ESG goals are met. Implementing bespoke circular economy software can also foster brand loyalty – customers get a more transparent view of what they’re buying and its impact. This is of increasing importance to today’s climate-conscience consumer. PwC’s 2024 Voice of the Consumer Survey, for instance, found that almost nine-in-ten consumers are experiencing the impact of climate change in their daily lives and are prioritising consumption that integrates sustainability-focused practice.
Becoming a regenerative business and playing a role in the circular economy can make a massive difference, to a retailer’s profits, its brand and the wider world. But it needn’t mean making a massive investment that causes massive disruption. Bespoke software development means solutions are tailored to the needs and budgets of businesses. Want to find out how? Get in touch with our team today.