When I used to talk to clients about circular economy principles in theory, one thought always struck my mind:
“Who is actually doing this here in Western Australia?”
While coordinating a Department of Treasury and Finance (WA) green procurement thought-leadership event, I found one by accident. Enter Loop Upcycling, and what started as a simple outreach turned into one of the most eye-opening lessons of my procurement career.
What are the silent costs of not recycling fabrics?
The Procurement Coach reminds organisations to look beyond the purchase price of textiles like uniforms, corporate wear and linen, and look for the “silent costs,” such as:
- Warehouse space for obsolete stock
- Management time to handle and track
- Disposal fees when it finally leaves
- Environmental and reputational risk if it ends up in landfill
One WA-based organisation going through a rebrand found itself with 1.5 tonnes of perfectly wearable uniforms that could no longer be used. Another organisation in the health sector was paying to store surgical textiles that couldn’t be easily or responsibly disposed of. The kicker was, none of this showed up on the original purchase order – but it did show up in their budgets.
That’s when the work of Frank from Loop Upcycling becomes ever so relevant.
Loop Upcycling: Circular textiles in action, right here in WA
Loop Upcycling is a Western Australian business specialising in textile recovery, upcycling and closed-loop solutions. They take end-of-life uniforms and workwear, separate out components like plastic reflective strips from high-vis gear, recover usable fibres and turn them into new products.
Instead of sitting in a warehouse or going to landfill, textiles are given a new life, thereby reducing waste and costs.
I invited founder Frank from Loop Upcycling to speak to around 80 public sector procurement professionals. His passion was instantly apparent, and he wasn’t just promoting his business – he was challenging government to lead on waste diversion and circular procurement.
After his presentation, I visited Loop Upcycling’s Perth warehouse. I saw pallets of uniforms being stripped, sorted and transformed and it clicked instantly – this wasn’t theory, it was sustainable procurement and circular economy principles in action.
What is the missing piece of Total Cost of Ownership?
The Procurement Coach finds that the Total Cost of Ownership includes:
- Upfront purchase price and logistics
- Ongoing storage and maintenance
- End-of-life disposal and environmental impact
- Ongoing reputational risk
A simple shift in conversation about value, risk and specification when dealing with high volume categories like textiles can be monumental to the bottom line. It can shine a light on whether you have budgeted for end-of-life disposal or whether you have considered a supplier who offers take-back, upcycling or reuse programs.
How can procurement teams factor in upcycling costs?
The Procurement Coach recommends government teams factor in the following when you’re buying uniforms or textiles:
- Map the full lifecycle cost, including disposal
- Ask suppliers about circular solutions
- Build end-of-life responsibilities and incentives into contracts
- Treat textile waste as a resource, not an afterthought
If you’d like to explore how the total cost of ownership and circular procurement can reshape your strategies, reduce waste and protect your budgets, get in touch.