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Management

Closed loop system

The closed loop system is a sustainable theme in business. This is because it facilitates the sustainable management of raw materials and energy as it makes possible to recycle the used material as new raw materials. The rising costs of raw materials and energy to businesses has necessitated the move towards closed loop systems. This is because it will contribute to the reduction of operating cost whilst minimizing the adverse impacts on the environment. As clients become conscious about sustainability, businesses will be forced to consider this system in order to gain a competitive advantage. Other advantages of a closed loop system include its ability to reduce the amount of water used and the waste material that are generated in every step of production. According to this system, human activities influence the biosphere; therefore, they should be conducted in such a way that limited raw materials undergo exploitation in the environment as well as releasing limited wastes. The lack of transfer of material between the inside and outside of a closed system enhances this. This system enhances the relationship between humans and the biosphere because wastes from the manufacture of a product are bio-composed back to the greater biosphere. In the end, the environmental burden by humans will decline. In the future, business activity should be viewed as a sustainable activity in which all consumer products get manufactured, utilized, and recycled or bio-composed off in a closed loop system. This will result in a world devoid of either industrial or domestic waste. Dangerous wastes will also be guided through the lifecycle without endangering the biosphere. This will necessitate a change in consumer attitude, product design, and will require cooperation between all stakeholders in the value chain. The end result will be a resourceful reverse logistics.