circuly x Posti to Enable Circular Business Models in the Nordics

At circuly, we're thrilled to announce our new cooperation with Posti, a leading name in delivery and fulfillment in the Nordics. Posti has developed a circular logistics solution for businesses in the Nordics and is collaborating with circuly to provide an end-to-end solution to companies in the Nordics for developing a circular business model. 

• Posti provides a solution for reverse logistics and end-to-end fulfillment for circular business models.
  
• circuly provides the digital infrastructure for launching, managing and scaling day-to-day operations associated with the circular business model.

This collaboration marks a significant step towards transforming linear business models into circular and sustainable forward thinkers.

About Posti

Posti stands as a pillar of logistics excellence across Finland, Sweden, Norway, Estonia, Latvia, and Lithuania. 

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With a legacy dating back to 1638, Posti offers a comprehensive range of services including parcels, freight, postal, warehouse, fulfillment, and logistics. Owned by the State of Finland, Posti’s extensive expertise and infrastructure make them an ideal partner for advancing circular logistics.

About circuly

circuly is a pioneer in subscription and rental solutions for consumer durable products. Based in Germany, our software is designed from the ground up to enable manufacturers and retailers to launch, manage, and scale their product-as-a-service models. 

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Whether it's electronics, furniture, bikes, or fitness equipment, circuly provides a robust platform that facilitates scaling day-to-day operations associated with circular business models, making them profitable and future-proof. Our software seamlessly integrates with the existing ecosystem, offering a comprehensive solution that supports both the operational and customer-facing aspects of subscription management.

About the Cooperation

The cooperation between circuly and Posti is set to redefine how Nordic companies approach circular business models. circuly’s advanced subscription management infrastructure works in tandem with Posti’s circular logistics expertise to close the loop on circularity. 

This collaboration combines our strengths: circuly’s powerful subscription management and Posti’s end-to-end logistics, including fulfillment, warehousing, repair, and refurbishment.

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Addressing the Challenges

Transitioning to a circular economy presents several challenges. Many companies are unsure how to adapt their logistics to a circular model, as traditional systems are typically designed for linear processes. 

“Traditional eCommerce solutions are not made for operating a circular business model” - says circuly’s Co-Founder & CTO, Nick Huijs. 

The consumer journey and product lifecycle in a circular model are distinct, requiring flexibility for plan adjustments, payment changes, and subscription management. The journey of a product in a circular business model doesn't end at delivery but instead begins there. In as-a-service models products can come back, they may need repairing and even some refurbishment before they can be pushed into another rental cycle. However these are operations our traditional processes are not designed for. 

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Here are few challenges that the strategic cooperation between circuly and Posti aims to address: 

#1 Returns: a necessary evil in eCommerce and "as-a-service" business models

In subscription models, products will inevitably return, whether due to the end of a rental period or a need for replacement. Managing these returns can be overwhelming without a well-established system. The process of handling, inspecting, and processing returned products requires efficient infrastructure to prevent bottlenecks and ensure a smooth customer experience.

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#2 Repairs - Multiple users & prolonged use leads to frequent repairs

Products in subscription models are used by multiple customers over time, which inevitably leads to wear and tear. This frequent need for repairs adds a layer of complexity to logistics. Without a dedicated system to manage repair requests and track the condition of each product, companies may face significant challenges in maintaining operational efficiency and ensuring product quality.

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#3 Refurbishment - Extending product lifecycle means getting your hands dirty

Extending a product’s lifecycle through refurbishment involves more than just repairs; it requires specialised expertise and often an entirely new process. Refurbishing products to meet quality standards before reintroducing them into circulation is resource-intensive. Many companies find it challenging to scale these processes due to a lack of infrastructure and expertise, hindering their ability to effectively implement a circular business model.

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#4 Day-to-Day Operations - Managing Subscription Models

Running a subscription model involves managing a wide array of daily operations, from adjusting plans and handling payments to addressing customer requests. Traditional systems often fall short in providing the flexibility needed for these tasks, leading to inefficiencies and operational headaches. The absence of an integrated solution means companies may struggle to keep up with the dynamic demands of subscription management, affecting overall customer satisfaction and business performance.

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#5 Scaling Complexities

As subscription businesses grow, scaling operations can become increasingly complex. Managing a larger volume of subscribers introduces challenges such as handling increased customer service requests, processing a higher number of transactions, and maintaining accurate inventory levels. Without scalable systems in place, businesses may find it difficult to keep pace with growth, leading to potential service disruptions and customer dissatisfaction.

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The Solution

Our cooperation offers a revolutionary solution. circuly’s subscription management system delivers an e-commerce-like consumer experience with advanced automation and flexibility, making circular business models scalable and practical. 

Posti complements this with their circular logistics capabilities, handling everything from initial fulfillment to repair and refurbishment. Their expertise ensures that products are effectively managed throughout their lifecycle, making the transition to circularity both feasible and efficient.

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The Benefit

The shift towards circular business models is driven by increasing consumer and regulatory pressure. By adopting a product-as-a-service model, companies can meet sustainability goals, generate recurring revenue, extend product lifecycles, and enhance customer relationships. This cooperation provides the tools and expertise needed to make these transitions smoothly.

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Expertise

• Posti: Specialises in end-to-end fulfillment and reverse logistics for electronics, furniture, baby products, and fashion in the Nordics.
• Circuly: Offers comprehensive subscription management infrastructure for physical products globally.

Together, circuly and Posti are paving the way for a more sustainable future, empowering companies to embrace circularity and thrive in a changing market.