Eco-nomics

Explaining the Circular Economy

The way we’ve produced, consumed, and discarded since the industrial revolution is for the most part, totally unsustainable. The evidence can be seen everywhere, from warming temperatures and waning fish stocks to the destruction of rainforests and depletion of fossil fuel supplies. The green transition we must all attempt is one which can seem, on the face of it, to require a lot from us with little reward to our bottom line, the staff we employ or even, have any tangible, measurable effect.


Though I’m not going to claim that implementing the circular model of production will solve all the issues business’ face today, considering its implications is certainly a good place to start. The circular model emphasises the need to collectively move away from the current model of production, one which requires we produce, consume, and discard without a thought for the end-of-life cycle of our products. Under its recommendations, we must rethink this linearity and instead subscribe to a circularity. We can think of this as committing ourselves to a total mindset change. We must recognise our environmental responsibility and account for the true impact of a good we produce. These considerations don’t just extend to our production lines, but to our supply chains too. Though in theory, this all sounds reasonable, how might a move towards the circular economy actually look?


The Circular Economy is best understood with reference to its 3 core principles- of waste elimination, product circulation and nature regeneration. Where productions models today sometimes even incentivise planned obsolescence, future models must eliminate waste, as in the face of growing global populations and insufficient waste management systems, recycling alone cannot possibly account for the increase in waste production forecasted if we don’t make a change. To put this into perspective, at our current rate, by 2040, the volume of plastic in the market will have doubled, the flow of plastic waste into the ocean will have tripled and ocean plastic stock will have quadrupled to 600,000,000. Some even suggest that by 2050, there could be more plastic in our oceans than fish. To prevent this, products instead must be circulated through the economy multiple times, and designed for durability, with reuse in mind.


Above this, it’s important we make an effort to undo some of the damage that’s already been inflicted on our planet, by regenerating nature through rewilding our towns, cities, and countryside’s, and protecting our oceans. This will not only increase biodiversity, preserving our natural world, but in creating carbon sinks and shoring up our ecological systems, we’re supporting the green transition itself.


The circular model of production has the potential to not only positively impact the environment and reduce emissions, but also carries with it important considerations for business, creating jobs and improving the resilience of supply chains. Whether its consumer pressure or moral conviction that leads you to consider switches to become more sustainable, perhaps the circular economy holds the answers for you. Often times, its not the tools that people lack to make sustainable choices, but instead the mindset that they approach problems with. So considering this, perhaps the circular economy sounds quite attractive to you, and you’re wondering what real steps can you take in order to make this future a reality?


At Sensize, we’re committed to supporting your green transition by providing you with feasible solutions to your supply chain problems. By investing in reusable packaging, you’re actively supporting the transition to the circular economy and designing out waste from your supply chains. Whatsmore, by ensuring your packaging is accounted for, through use of our tracking technology, we can enable you to cut overheads associated with missing packaging or lost shipments. With the use of our technology, you can ensure your packaging is cycled through your supply chain thousands of times, ensuring your investment in the circular economy does not only benefit the environment, but your business too.


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November 12, 2025
At the end of the Second World War, American military planners left millions of standardized pallets in Australia. They were bought for a steal by a little-known firm called Brambles. The company set about renting them to manufacturers, growers and retailers who, until then, relied on flimsy one-way pallets. Customers appreciated the higher quality and the convenience of Brambles collecting empties. Reuse proved cheaper than disposal, enabling Brambles to offer a better product at lower cost while turning a tidy profit. The model flourished. Brambles became a giant, running a pool of hundreds of millions of pallets. Many other pooling companies were founded in their wake. Today, billions of reusable containers, from grocery crates to roll cages to boxes for car engines, circle the globe. Prospects for further growth are strong: the fleet of reusable containers remains far smaller than the 100s of billions of cardboard boxes used annually. Environmental goals and regulations such as the EU’s Packaging and Packaging Waste Regulation (PPWR) provide further tailwinds. Yet reality often falls short. Reuse is cheaper only if containers are recovered quickly and redeployed many times. A lost container is a costly one. In open supply chains, losses and delays are routine. Why containers go astray Modern supply chains, whether retail, automotive or electronics, span sites owned by several firms, each with their own IT systems. These systems can track operations locally but are blind to what happens upstream or downstream. Once a container leaves one site, visibility can be lost. This is not only a problem for container management. Firms hunger for information on the whereabouts and condition of goods in transit. Separate company data silos make it very difficult to obtain. Too often, reusable containers are treated as an unwelcome compliance cost, the price of ESG pledges and regulatory diktats. What if, instead, they became a source of profit and competitive advantage? Containers as a digital platform Factories, farms, warehouses and stores may be run by different firms, but they share one thing: a common pool of reusable containers. Crates and pallets circulate through every corner of the supply chain. Once fitted with sensors, they cease to be passive carriers and become roving data collectors, capturing information across organizational boundaries. In doing so, they could dissolve silos and form the backbone of a new layer of digital infrastructure. The promise is clear: a supply chain made visible, predictable and efficient. To achieve it, trackers must meet daunting requirements: cheap enough to ride on low-value containers, smart enough to work everywhere without bespoke infrastructure, and durable enough to last the five to ten years of a container’s life. Meeting those demands would turn an old logistics workhorse into the foundation of tomorrow’s digital supply chain. The Sensize Tracking System Sensize has designed its tracking system around these constraints. It relies on two innovations: Parent/Child networking Cellular connectivity is ubiquitous and requires no fixed infrastructure. But cellular trackers are too costly to fit to every low-value container. Bluetooth trackers are far cheaper, but their short range (around 50 m) limits them to individual sites. Sensize combines the two. Most containers are fitted with low-cost Bluetooth Child sensors. A small fraction carries cellular Parent sensors. These parents collect data from nearby children and upload it via the mobile network. Because the parents travel with the fleet, coverage extends across the supply chain without the need for fixed infrastructure. Collaborative networking Supply chain sites hold many container types, such as crates, pallets and roll cages, often from multiple suppliers. If firms are using Sensize’s system, they can share the load –a parent tracker on a crate can collect data from a child tracker on a pallet, and vice versa. Data is uploaded, decrypted and delivered to the relevant supplier. Costs are effectively pooled, producing broader coverage than any one organization could manage alone. When assets become insights What began in the 1940s as a practical way to reuse military surplus has become one of the most important building blocks of modern logistics. Brambles worked out how to turn leftover wood into profit, while saving customers money. Digitized containers repeat the trick, although now the profit comes from data rather than wood. In an era of regulatory pressure and fragile supply chains, firms that grasp the opportunity and transform their boxes and pallets into roving sensors will not only cut losses but also gain visibility into flows of goods that competitors still struggle to find. What was once seen as a compliance burden may yet become the backbone of a profitable digital platform economy.
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By Paul Lane March 27, 2025
Over the past decade, the automotive industry has been looking for improved end-to-end transparency across the supply chain. Take BMW AG for instance. In 2025, their Chairman of the Board of Management, Oliver Zipse, s aid in a statement: “We have learned in recent years how vulnerable and susceptible to disruption they can be. Take a guess: How many parts do you think our plants worldwide need to be supplied with every day? The answer is: 36 million. The right quantities have to be in the right place, at the right time, in the best quality.” These 36 million parts are placed in boxes which travel around the world, often getting lost, misused or insufficiently managed along the way. Plus, for this number of parts, there is a need for thousands or, sometimes, millions of containers. As the demand to take parts monitoring even more seriously increases, a comprehensive solution is required by businesses across all sectors. The market has become increasingly aware of the importance of identifying blind spots and understanding inefficiencies, with businesses using this knowledge to optimize their supply chains and improve their results. Whether it’s for suppliers monitoring their products or manufacturers tracking inbound equipment, comprehensive, near real-time visibility across their operations is invaluable in getting to the bottom of these issues and finding a solution. Industry data found that 45% of automotive manufacturers expressed concerns about the lack of transparency in inbound supply chains. Active GPS tracking of the reusable packaging used within the industry allows automotive businesses to receive quick and precise data on the location, condition and status of automotive equipment and parts, allowing for loss reduction, improved inventory management and complete regulatory compliance. Keep reading for a detailed look at the benefits of asset tracking for automotive assets.
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