The circular value network of a building is the set of interrelated activities performed by companies of a specific industry to maintain or increase the social, financial or environmental value of that building and its parts.

Unlike a linear value network, which generally ends when the component is delivered to a customer, a circular value network includes activities that keep components in use as long as possible and preserve their value at their end-of-use. A circular value network can therefore be seen as the backbone of circular business models.

The value network of a building typically includes activities like extracting and converting raw materials into products as well as constructing, managing and maintaining them within the building. Unlike value chains, such networks are characterised by iterative loops and multi-directional exchanges of materials between companies in a circular economy.

Value chain: is the sequence of activities performed to give value to a product. The value chain is characterised by unidirectional flows, while the value network depicts multidirectional flows.

Supply chain: encompasses the same activities as the value chain but is depicted from a different perspective. While the value chain describes what gives value to a product from customers’ expectations, the supply chain focuses on the flow of goods and services towards the end customers.

References

Debacker W. and Manshoven S. (2016) Synthesis of the state-of-the-art BAMB report: Key barriers and opportunities for Materials Passports and Reversible Building Design in the current system. VITO.

Lanng C. (2014) Five things that will help you develop a circular supply chain. Accessed March 2017 via www.cips.org/supply-management/opinion

Staff I. (2003) Value Chain, definition. Accessed March 2017 via www.investopedia.com/terms/v/valuechain.asp

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