The circular economy can be a bit tough to follow. With so many trends and practices, many surplus companies don’t know what they are looking for and how they should work on these practices.
To begin with, do you understand what the circular economy is about?
Many assume what it is and don’t really take the time to learn about the process or, at least, the concept.
The circular economy is about using things again and again instead of throwing them away. It helps protect the environment by reducing waste and saving resources. All thanks to how items are repurposed and moved away from landfills.
One important part of the circular economy is asset recovery, which is all about finding ways to reuse, repair, or recycle products and materials. This is in place of letting them become trash.
To know if asset recovery is working well, companies use circular economy metrics. These are simple ways to measure how much waste is avoided, how many materials are reused, and how much value is saved.
In other words, if the efforts are worthwhile and actually providing the results.
Coastal Surplus Solutions works with all types of metrics and circular economy practices. Hence, we are able to share our knowledge and offer great results for your business.
If you are also looking for surplus sourcing partners and make your life easier, we are also here for you.
What Are Circular Economy Metrics?
Focusing on the idea of what the circular economy is, its metrics are more about keeping track of how well a company is following the practices.
In specific, how the surplus business (but it can also be any other business) is working on keeping materials and products in use.
Since it is all about repurposing items, you have to make sure that they are actually being moved away from landfills.
Metrics measure this and even the smallest details, like the efficiency or recycling rate of the items and products.
In our case, we choose the metrics we work with and how every part of the circular economy system is implemented.
However, overall metrics include:
- Reuse rate regarding how much material is being reused or not.
- Recycling rate for the new products or specific options.
- Waste reduction, such as moving items away from landfills.
- Resource efficiency in how the materials are used to make products instead of finding everything new and generating waste.
- Cost savings through the entire surplus practice.
Why Are Circular Economy Metrics Important?
Measuring these numbers helps companies understand their impact on the environment and find ways to improve.
You don’t know whether you are helping or not? In 2025, it is unacceptable with the options around metrics. But how do they work in specific?
For example, if a company buys a surplus pallet for $15.000 and spends $1.500 on shipping and marketing, it needs to keep track of this.
Tracking how much of that inventory is reused or recycled shows how well they are reducing waste and saving money. Is this surplus business even working? If you aren’t reducing waste, then you aren’t doing it right.
These metrics also help businesses meet rules and laws about waste and pollution. Plus, they show customers and investors that the company cares about the planet.
How to Use the Metrics in Asset Recovery
Focusing on the task at hand, you have a wide variety of options:
- Track Inventory Flow. You can keep records of how much surplus material is reused, repaired, or recycled.
- Set Goals. Decide on targets like increasing reuse by 20% or cutting waste by half.
- Use Technology. Tools like barcodes, sensors, and software can help monitor assets easily.
- Report Results. Share progress with employees, customers, and regulators to build trust.
- Improve Continuously. Use data to find problems and make better decisions over time.
Feel free to contact us and work on the best practices and help the environment while generating profits.
As mentioned by the Green Living Blog, working on eco-friendly practices already helps reduce costs by 25%. Hence, if you are unsure because of how it all works, rest assured that investing time in it is worth the time.
