CIRCULAR ECONOMY AND MODULARIZATION
Circular economy is an alternative to the traditional linear economy. The main idea is to minimize waste and move away from a culture in which we use and discard, instead maximizing the use of resources by using them for as long as possible and recycling or reusing them when they no longer serve a purpose.
THE CONNECTION
Modularization enables companies to reduce inventory, minimize waste, and simplify the value chain, which reduces costs. In a modular product, individual modules can be replaced, repaired, and reused, reducing resource consumption, and extending the product’s lifespan. Because modularization involves working with a limited number of module variants, each serving a specific purpose and capable of being combined in various ways, it is possible to scale production of individual modules as needed. This reduces raw materials, waste, energy usage, and environmental impact. In this way, modularization supports a circular economy.
NEW OPPORTUNITIES
Companies can reduce their costs with circular economy because resources are used more efficiently and the need for raw materials in product materials is reduced. Since a principle of the circular economy is to reuse materials to the greatest extent possible, companies can create new revenue streams and opportunities for innovation, such as selling the materials or using them in new products. Implementing a circular economy in business can also have favorable effects on image and reputation because sustainability has increasingly become a priority for consumers. Therefore, circular economy also has the potential to attract new customer groups.
