Optimize Material Flows in a Circular Economy - an example based on the automotive industry

With the growing significance of resource management, companies must gather more information and gain a comprehensive overview of their material flows. This paper conducts a Material Flow Analysis, comparing the benefits of a Top-Down and Bottom-Up approach. Such an analysis enables companies to better comprehend the materials they use, their quantity, and the associated waste streams. Moreover, it enables the inclusion of sustainability metrics like carbon footprint and recycling content. To better understand how Material Flow Analysis can be used to optimize material flows in a circular economy and support progress towards sustainability goals these metrics can be presented using a Sankey diagram to uncover any potential concerns or critical areas. While a top-down analysis can assist company management in addressing new policies and tackling large-scale issues such as reducing a material's, department's, product's, or customer's carbon footprint, a bottom-up analysis is necessary to analyze production steps in greater detail to identify any areas where improvements may be necessary or integrated. Additionally, the text introduces a Material Circularity Index that utilizes Bill of Material information to evaluate the circularity of a company's products. This index can be applied to both existing and new products, aiding in the improvement of current products and ensuring the introduction of circular products into the market.