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A circular supply chain at scale: Retex from Manutan and Orange
Webinar speakers :
Alexandra SAMYN
Jean-Claude CAQUELOT
Anaïs LEBLANC
Implementing a circular Supply Chain on an industrial scale is a major challenge for companies. In a fascinating webinar, Manutan and Orange shared their experience of this transformation, which relies among other things on the right organization, optimized logistics sizing and solid partnerships. A structured approach to sourcing and the adoption of traceability tools are also key success factors. Let's dive into the world of refurbished goods with these two players committed to the circular economy.
How does the circular economy team fit in with a traditional, well-established business?
The circular economy is based on a different organization from the traditional supply chain. Initially, a dedicated team is needed to initiate this transition and test new practices without disrupting existing operations. The aim, however, is to gradually integrate these innovations into the traditional organization. To achieve this, equipment is centralized at national level to optimize skills management and control risks.
"The target is to be absorbed by the "classic" orga, but first you have to innovate on your own."
Alexandra Samyn
Over time, once they have reached maturity, circular processes should become a natural part of the supply chain, guaranteeing their lasting, effective adoption.
Sourcing is a key success factor for refurbished products
The Circular Economy has turned the S&OP approach on its head by integrating the constraints of access to product sources, as well as anticipating production volumes and capacities.
Manutan has developed a structured approach known as the road map of reconditioning, in order to guarantee quality sourcing, but make no mistake, a high-potential source is not necessarily furniture in very good condition. Value recovery potential is one of the 4 decision-making axes of the road map, and the decision is made on the basis of information provided by the Group's sourcing manager. This dedicated person will check potential collections in the field, in order to select sources as far upstream as possible.
Strong collaboration with various players (eco-organizations, brokers, customers) is also essential to ensure the sustainability of supplies. The aim is to access homogeneous batches in large quantities.
Logistics network sizing and multi-locality
Orange's logistics strategy is based on a hybrid organization:
2/3 of stock is kept locally to simplify logistics and sort equipment by condition.
A centralized reconditioning hub in France enables precise diagnosis of used equipment.
Multi-locality is managed at national level to guarantee centralized expertise and optimize logistics.
This approach optimizes flow management while guaranteeing efficient reconditioning. The "test & learn" approach is essential for adjusting these processes in line with feedback from the field.
Partnership and value sharing in the circular economy
Orange has set up a long-term partnership model based on several pillars:
Transparent pricing.
A feedback loop for continuous process improvement.
Strategic outsourcing to compensate for the lack of in-house skills.
A "pay-per-use" approach that enables investment in innovation and research.
This sharing of value enables us to build lasting relationships that benefit all our stakeholders.
Implementing a circular supply chain requires high-performance tools, particularly in terms of traceability and flow management. Rigorous inventory management and tracking of equipment by serial number are essential to ensure quality and profitability. Digitizing the circular supply chain is therefore a key factor in scaling up.
To find out more and discover the details of these strategies, the replay of the event is available to members.
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