The Crucial Role of Appraisers in Cultivating a Circular Economy

Spotlighting four key ways appraisers can lead the charge towards a sustainable future by reshaping supply chains, redefining value, and fostering collaboration to be covered in ASA’s upcoming ME188 There’s Cash in that Trash. The Appraisers’ Role in Creating the Circular Economy webinar.

By C.J. Nord, C.M.P, CSCP

In the quest for sustainable development, the concept of a circular economy has emerged as a beacon of hope, offering a path to reduce waste, conserve resources, and mitigate environmental degradation. At the heart of this transition lies the indispensable role of appraisers, whose expertise is pivotal in reshaping the economic landscape towards circularity. Here, we delve into the multifaceted contributions of appraisers in fostering a circular economy and elucidate how they can leverage their skills to drive transformative change.

1. Recognizing the Appraiser’s Role in Building a Circular Economy:

Appraisers serve as linchpins in the transition to a circular economy by virtue of their unique skill set and knowledge base. They play a pivotal role in assessing the value of assets, including tangible goods, materials, and resources, thereby influencing consumption patterns and investment decisions. By recognizing the inherent value in underutilized or discarded assets, appraisers contribute to the ethos of reuse, refurbishment, and recycling, essential pillars of the circular economy paradigm.

2. Differentiating Between Linear and Circular Supply Chains:

In a linear supply chain, products follow a linear trajectory from extraction to disposal, resulting in a linear flow of resources and a significant generation of waste. Conversely, a circular supply chain emphasizes closed-loop systems, where products are designed for longevity, reuse, and eventual recycling. Appraisers play a pivotal role in facilitating this transition by evaluating the potential for resource recovery and identifying opportunities for remanufacturing and repurposing. By delineating the economic viability of circular supply chain initiatives, appraisers incentivize businesses to embrace sustainable practices and minimize their environmental footprint.

3. Utilizing Knowledge of the Secondary Market to Build a Resource for the Future:

Appraisers possess a deep understanding of the secondary market, where surplus or obsolete assets find new life through resale or redistribution. This expertise positions them as custodians of valuable resources that might otherwise be relegated to landfills. By tapping into the secondary market, appraisers create a reservoir of materials and components that can be reintegrated into the production cycle, thus conserving energy and reducing the need for virgin resources. Moreover, by appraising the economic potential of secondary market transactions, appraisers foster a vibrant ecosystem of circular exchanges, where value is derived from the efficient allocation of existing resources.

4. Leveraging New Knowledge to Expand Client Base:

Armed with insights into circular supply chains and the economics of resource recovery, appraisers are well-equipped to expand their client base to include supply chain professionals. By offering their expertise in assessing the value of circular assets and optimizing resource utilization, appraisers become indispensable partners in supply chain optimization efforts. Whether it’s identifying cost-saving opportunities through material reuse or quantifying the environmental benefits of circular practices, appraisers add tangible value to supply chain operations. By forging strategic alliances with supply chain professionals, appraisers not only broaden their market reach but also catalyze the adoption of circular principles across diverse industries.

In conclusion, appraisers wield significant influence in catalyzing the transition to a circular economy. Their role extends beyond mere valuation to encompass advocacy, innovation, and collaboration with stakeholders across the supply chain. By harnessing their expertise and leveraging emerging opportunities, appraisers can spearhead a transformative shift towards a more sustainable and resilient economic paradigm.

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Looking for a deeper dive into this topic? Register for ASA’s ME188 There’s Cash in that Trash. The Appraisers’ Role in Creating the Circular Economy webinar, May 29, 2024 from 1:00-2:30 PM ET, presented by C.J. Nord, C.M.P, CSCP.

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About the Author

C.J. Nord, C.M.P, CSCP, founder of Supply Chains for Good has over 25 years of distinguished leadership in the manufacturing sector, C.J. Nord is recognized for her supply chain acumen, visionary thinking, and steadfast commitment to ethical standards. Throughout her career, C.J. has collaborated with government and private entities to avert major disruptions to the supply chain, and to support public safety. In 2019, C.J.’s personal battle with cancer fueled her drive to make a broader impact, leading her to establish Supply Chains for Good. Through this innovative platform, she leverages supply chain methodologies to tackle pressing societal issues, driving legislative changes, and fostering impactful initiatives. Notably, C.J. is the architect behind the Supply Chains for Good Civic Academy and the pioneering “There’s Cash in that Trash” Profit-Driven Circularity workshop. In addition, C.J. offers comprehensive services encompassing training, consulting, appraisal, and advocacy. Widely acknowledged for her expertise, C.J. Nord has been featured in esteemed publications including the Los Angeles Times Business section and The Wall Street Journal. Yet, despite her numerous accomplishments her dog remains unimpressed.