Circular economy (CE) practices are increasingly adopted in industrial supply chains to reduce waste, extend material life cycles, and strengthen environmental, social, and governance (ESG) performance. This study examines the implementation of CE principles within the drilling supply chain of PT Drilling Services Pertamina through the repurposing of used work overall uniforms into functional products and corporate merchandise. Using Material Flow Analysis (MFA) and reverse logistics mapping, the research evaluates waste reduction potential, material recovery efficiency, and operational feasibility. Findings indicate that structured reverse flows, supplier engagement, and local micro‑enterprise partnerships significantly reduce textile waste while enhancing ESG outcomes and supply chain sustainability. The study contributes to managerial understanding of CE adoption in resource‑intensive industries and offers a scalable model for green supply chain transformation.

Keywords

Circular economy; reverse logistics; material flow analysis; textile upcycling; supply chain sustainability