Circular Economy as the key to sustainability
The manufacturing industry's answer to sustainability is the circular economy along its own value chain. The experience of TMG Consultants confirms that the fastest and most effective way to a more sustainable and yet economical enterprise is based on the foundation of the Circular Economy.
A professionally designed entry into the Circular Economy offers manufacturing companies a real opportunity to derive sustainable economic benefits from consistent ecological action. To achieve this, it is necessary to consider the model over the entire product life cycle and as part of a holistic transformation. We are happy to assist you in this transformation.
With the experience from numerous consulting projects as well as expert knowledge, TMG Consultants supports its clients in five essential areas on the way to the Circular Economy:
- Circular products
- Procurement of recycled raw materials
- Reverse Logistics
- Circular economy in production
- Digitalization of the Circular Economy

PRODUCT DESIGN
Circular economy requires products that can be reclyled
- How must products be designed in order to survive in a circular economic model?
- What conflicts of objectives arise with the current orientation of product design?
- What adjustments does this require in product development and product strategy?
- What success criteria must be considered in product development?
- In which areas do companies need to build up competence?
Product design has a key function in a circular economic model. After all, too many products are still designed in such a way that they simply cannot be reused, repaired or at least "embellished", or can only be used as a one-off product anyway. In terms of basic design alone, these products do not meet the requirements that must be met when entering a circular economy.
The special importance of product design for a functioning "Circular Economy" is also expressed in the fact that up to 80 percent of the environmental impact of products is already predetermined at the beginning of the lifecycle – by the design.
TMG Consultants helps the manufacturing industry to the right approach for the development of circular products. In doing so, the design of a new product remains a question of economic efficiency, taking into account the different requirements.


Procurement
Procurement as an essential basis for circular products
- What contribution can procurement make in the context of the circular economy?
- How sensible is it to make greater use of recycled materials in the future?
- What are the particularities of secondary raw materials and recyclable materials?
- How can suppliers be found in the short term who have suitable recyclates in their range and can be considered as partners?
- How can artificial intelligence be used to find the right suppliers?
Irrespective of the current explosive situation and the supply difficulties with certain raw materials, we believe it makes sense to fundamentally consider in which products recycled raw materials could already be used today. According to the EU Commission's targets, the quota of recycled materials should be able to cover more than 25% of current raw material requirements by 2030.
Furthermore, the use of sustainable and recyclable materials and raw materials is an effective measure to both counteract the risk of increasing shortages of important raw materials and reduce dependence on suppliers in remote, politically unstable regions.
How the search for a supplier of recyclates or other sustainable inputs can be carried out today with the help of artificial intelligence is demonstrated by 7Q1 – a tool used by TMG Consultants to easily and quickly identify suitable suppliers. With the help of 7Q1 and the use of AI in conjunction with Big Data, manufacturing companies will be able to identify suppliers quickly, inexpensively and objectified worldwide, virtually "at the push of a button".
Reverse Logistics
Basic prerequisite for remanufacturing processes – efficient reverse logistics
- Why is reverse logistics so important in the Circular Economy?
- What distinguishes it from normal logistics?
- What are the success factors to consider when setting up reverse logistics?
- Which types of reverse logistics are suitable for which circular economy model?
- How can optimal reverse logistics be set up?
A Circular Economy is only as good as its reverse logistics. This is because return logistics is an elementary prerequisite before the actual remanufacturing process can begin. Without it, the cycle cannot be closed.
Return logistics is fundamentally different from classic distribution logistics. The main challenge here is that control is no longer "direct" from a central point to a large number of recipients. Quite the opposite: in reverse logistics, the user decides when products are returned to the cycle.
Consequently, companies considering the move to a circular economy must also address the question of how to set up and implement reverse logistics that function as efficiently as possible. The key to success – and in our view the decisive point – is that the topic of reverse logistics cannot be treated as a marginal issue. If a company consciously decides to actively enter the Circular Economy, those responsible should also put "Reverse Logistics" on the agenda and anchor it organizationally in the company according to its importance.


Operations
Production processes as the key to a successful circular economy
- What is the role of production in the context of the circular economy?
- What possibilities and concepts are there for "production" to design and establish closed material cycles?
- Which strategic questions do companies have to answer in order to approach the circular economy in a well-founded manner?
- What prerequisites must be created to make the circular economy possible?
- What stumbling blocks and success factors need to be taken into account?
Production plays a key role in the circular economy model. Since an average of 40 to 50 percent of total costs in manufacturing companies is spent on production materials, substantial cost savings can be achieved through professional recycling of these materials.
In order to design and establish a closed material cycle in production, manufacturing companies have various options at their disposal:
- Recycling / reuse
- Remanufacturing / remanufacturing
- Refurbishment / Product overhaul
TMG Consultants works out a clear strategy with its customers in advance and plans or optimizes the processes based on this strategy. Together with the manufacturing industry, we advise on key questions: Are the refurbishment / production processes efficient? Is the cost of reprocessing commensurate with the benefits?
Digitization
Digitization as an enabler for a successful circular economy model
- What is the role of digitalization in the Circular Economy?
- Which challenges of the Circular Economy require a stronger focus on digital solutions?
- What potential does digitization offer manufacturing companies on their way to the Circular Economy?
- Which digital solutions are suitable as enablers for the Circular Economy and which use cases are conceivable?
- What added value does a specially adapted PLM deliver in a circular economy model?
In a circular economy, digitization has the primary task of creating transparency with regard to the specific status of products and ensuring their traceability throughout the entire life cycle, right up to final return.
Many companies do not know what happens to their products once they have been brought to market: How do customers use the product? How intensive is this use? What is the quality of the product during and what is the quality of the product at the end of its life cycle? What about the quality of some specific components at the end of their life cycle? These and many others can be answered today in many cases supported by digital solutions. Digitalization is thus making a fundamental contribution to enabling companies to gain more information about their product from reused or remanufactured products, recycled materials, and even particularly extended useful lives, and thus to reap sustainable economic benefits.
With our experience, we help companies to collect and evaluate the relevant data. Based on internal IT systems, we create solutions to bundle and link all product-related data. Digitalization thus becomes a lever that is largely responsible for the efficiency of the entire cycle.
