Multi-dimensional Circular Supply Chain Management: A Comparative Review of the State-of-the-art Practices and Research

The circular economy (CE) concept has gained wide attention in practice as well as in academia in recent years. This paper reviews the state-of-the-art practices and research in “circular supply chain management” (CSCM), i.e., the integration of CE thinking into supply chain management (SCM) with the goal of achieving “zero wastes”. The review covers 68 real-life CE implementation cases collected by the Ellen MacArthur Foundation and 124 publications in well-established, high-ranking academic journals in operations and supply chain management. The comparative review shows that CSCM encompasses multiple dimensions, including closed-loop SCM, reverse SCM, remanufacturing SCM, recycling SCM, and industrial symbiosis. A multi-dimensional CSCM (MD-CSCM) framework is developed to synthesize their interrelationships and to categorize academic publications into multiple research themes. Based on the identified research-practice gaps and pressing research needs, this study discusses important directions for future studies to advance supply chain circularity

Distribution Channel Choice and Divisional Conflict in Remanufacturing Operations

We consider a firm consisting of two divisions, one responsible for designing and manufacturing new products and the other responsible for remanufacturing operations. The firm will sell these new and remanufactured products either directly to the consumer (direct selling) or through an independent retailer (indirect selling). Our study demonstrates that a firm’s organizational structure can affect its marketing decisions. Specifically, a decentralized firm with separate manufacturing and remanufacturing divisions can benefit from indirect selling with higher firm profit, supply chain profit, and total consumer demand than direct selling. Moreover, this structure also induces a remanufacturable product design. In contrast, a centralized firm in which the manufacturing and remanufacturing divisions are consolidated is intuitively better off by choosing direct selling than indirect selling. Furthermore, we show that, surprisingly, when the focal firm sells through an independent retailer, a decentralized internal structure can result in higher supply chain profit than a centralized internal structure. We further investigate the case of dual dedicated channels and conclude that, while direct selling of remanufactured products and indirect selling of new products can better induce a remanufacturable product design and higher supply chain profit, it is not in the best interest of the firm in terms of total sales and firm profit

Designing the business models for circular economy : towards the conceptual framework

Switching from the current linear model of economy to a circular one has recently attracted increased attention from major global companies e.g., Google, Unilever, Renault, and policymakers attending the World Economic Forum. The reasons for this are the huge financial, social and environmental benefits. However, the global shift from one model of economy to another also concerns smaller companies on a micro-level. Thus, comprehensive knowledge on designing circular business models is needed to stimulate and foster implementation of the circular economy. Existing business models for the circular economy have limited transferability and there is no comprehensive framework supporting every kind of company in designing a circular business model. This study employs a literature review to identify and classify the circular economy characteristics according to a business model structure. The investigation in the eight sub-domains of research on circular business models was used to redefine the components of the business model canvas in the context of the circular economy. Two new components - the take-back system and adoption factors - have been identified, thereby leading to the conceptualization of an extended framework for the circular business model canvas. Additionally, the triple fit challenge has been recognized as an enabler of the transition towards a circular business model. Some directions for further research have been outlined, as well

Reverse Logistics – Capturing Value in the Extended Supply Chain

Product flows in today’s supply chains do not end once they have reached the customer. Many products lead a second and even third or fourth life after having accomplished their original task at their first customer. Consequently, a product may generate revenues multiple times, rather than a single time. Capturing this value requires a broadening of the supply chain perspective to include new processes, known as ‘reverse logistics’, as well as multiple interrelated usage cycles, linked by specific market interfaces. Coordinating the successive product uses is key to maximizing the value generated. In this chapter, we review the field of reverse logistics. We discuss its opportunities and its challenges and indicate potential ways for companies to master them. We highlight what makes reverse logistics different from ‘conventional’ supply chain processes, but also point out analogies, and explain how both views can be integrated into an extended supply chain concept. We illustrate our discussion with examples of reverse logistics practice at IBM

Closed-loop Supply Chain: A Systematic Review

The extraction of virgin materials from nature depletes existing resources and creates huge waste problems both in the extraction process itself and at the product’s end-of-life. There is a propensity for this waste to be reduced by adopting an effective product-recovery process, which can ensure that future consumption needs are met for the ever-growing population and eventually result in low rates of landfill. A closed-loop supply chain (CLSC) system provides an efficient sustainable production process where the most used products, parts, and other waste materials are recovered to improve material efficiency and ultimately reduce environmental degradation. Over the last few decades, companies have started to advance in their efforts to implement CLSC systems that contribute to value creation and reduce waste. The objective of this thesis is to map and assess the performance of different product-recovery choices (remanufacturing, recycling, and hybrid) in reducing environmental risks and enhancing the end-of-life of used products, parts, and other waste materials. While the concept of CLSC has been adopted by many companies, there remains a lack of knowledge as to how to identify the criteria with which to evaluate what factors are crucial in adopting different product-recovery choices. Therefore, to learn how to close this knowledge gap, a systematic review of the extant literature surrounding three different product-recovery choices (remanufacturing, recycling, and hybrid) was conducted through the lens of transaction cost economics (TCE). Previous studies have provided information by choosing a specific product-recovery option or choosing between different product-recovery options at a given point in time from the companies’ perspectives. This thesis expands upon the critical literature surrounding different product-recovery choices by identifying patterns across industries. Also, this study ascertains the impacts of take-back legislation across industries and across geographical locations with respect to these different product-recovery choices. The results of this study identify distinct characteristics of product-recovery choices and posit how companies might weigh the benefits of remanufacturing and recycling through the integration of CLSC. The findings imply that all relevant intra- and inter-organizational production processes must be channelled to improve the effectiveness and efficiency of CLSC. This thesis contributes to the existing CLSC literature, and fills an important literature gap by exploring industrial patterns with respect to different product-recovery choices; it also highlights important implications for companies seeking to drive their production activities towards being more sustainable

Product-Service development for circular economy and sustainability course

ABSTRACT: This book is an output of the ERASMUS+ KATCH_e project. KATCH_e stands for “Knowledge Alliance on Product-Service Development towards Circular Economy and Sustainability in Higher Education”. This was a 3-year project (2017-2019), aiming to address the challenge of reinforcing skills and competences in Higher Education and within the business community, in the field of product-service development for the circular economy and sustainability, with a particular focus on the construction and furniture sectors.info:eu-repo/semantics/publishedVersio

Re-manufacturing networks for tertiary architectures

This book deals with re-manufacturing, recondition, reuse and repurpose considered as winning strategies for boosting regenerative circular economy in the building sector. It presents many of the outcomes of the research Re-NetTA (Re-manufacturing Networks for Tertiary Architectures). New organisational models and tools for re-manufacturing and re-using short life components coming from tertiary buildings renewal, funded in Italy by Fondazione Cariplo for the period 2019-2021. The field of interest of the book is the building sector, focusing on various categories of tertiary buildings, characterized by short term cycles of use. The book investigates the most promising strategies and organizational models to maintain over time the value of the environmental and economic resources integrated into manufactured products, once they have been removed from buildings, by extending their useful life and their usability with the lower possible consumption of other materials and energy and with the maximum containment of emissions into the environment. The text is articulated into three sections. Part I BACKGROUND introduces the current theoretical background and identifies key strategies about circular economy and re-manufacturing processes within the building sector, focusing on tertiary architectures. It is divided into three chapters. Part II PROMISING MODELS outlines, according to a proposed framework, a set of promising circular organizational models to facilitate re-manufacturing practices and their application to the different categories of the tertiary sectors: exhibition, office and retail. This part also reports the results of active dialogues and roundtables with several categories of operators, adopting a stakeholder perspective. Part III INSIGHTS provides some insights on the issue of re-manufacturing, analyzed from different perspectives with the aim of outlining a comprehensive overview of challenges and opportunities for the application of virtuous circular processes within building sector. Part III is organized in four key topics: A) Design for Re-manufacturing; B) Digital Transformation; C) Environmental Sustainability; D) Stakeholder Management, Regulations & Policies

Transitioning to a circular business model in sustainable fashion companies

The circular economy is a topic of growing interest as it presents an alternative to the current linear model of “take-make-disposal” and is needed to connect the environment and the economic systems. Not only new technologies and collaboration among the supply chain are crucial to achieve the circular economy, but new business models are required to expand the potential and application of circular principles. The fashion industry has an important role in our lives and is responsible for a huge environmental and social impact, what makes it especially interesting for the transition to a circular business model. The objective of this research is to analyze how the adoption of circularity by “born sustainable” fashion companies affect their business model. By identifying and adapting a circular business model framework from the literature to the fashion industry, the aim is to understand how companies from Brazil and Italy implement circular principles in their business models. This study is separated into two papers. The first had the objective of adapting a circular business model framework for fashion apparel manufactures, and experts were interviewed to validate the proposal. The second paper sought to analyze the application of the circular business model framework by four sustainable fashion companies of the aforementioned countries by conducting case studies. Results show that the small sustainable fashion businesses share the concern about the social welfare of the involved in the supply chain and offer garments aiming quality and durability. However, they present different design strategies and differ with respect to the materials used. Besides the design, is part of the implementation of circularity the offer of services such as repair, in which while the ownership is still transferred, increases the interaction with customers. Take-back systems, referring to the collection and management of used garments, are important buy still not widely implemented or utilized, indicating some barriers. Design challenges and high costs due to resources and manual and fairly paid production processes are other common challenges.A economia circular é um tópico de crescente interesse, visto que apresenta uma alternativa ao atual modelo linear de “extrair-produzir-descartar” e é necessária para conectar o meio ambiente e os sistemas econômicos. Não apenas novas tecnologias e colaboração entre a cadeia de suprimentos são cruciais para alcançar uma economia circular, mas novos modelos de negócios são necessários para expandir o potencial e a implementação dos princípios circulares. A indústria da moda tem um papel importante em nossas vidas e é responsável por um enorme impacto ambiental e social, o que a torna especialmente interessante na transição para um modelo de negócios circular. O objetivo desta pesquisa é analisar como a adoção da circularidade por empresas de moda “nascidas sustentáveis” afeta o modelo de negócios. Ao identificar e adaptar um framework de modelo de negócios circular da literatura para a indústria da moda, o objetivo é entender como empresas do Brasil e da Itália implementam princípios circulares em seus modelos de negócios. Este estudo está dividido em dois artigos. O primeiro teve o objetivo de adaptar um framework de modelo de negócios circular para fabricantes de moda, e a proposta foi validada através de entrevistas com especialistas. O segundo artigo procurou analisar a implementação do framework de modelo de negócios circular por quatro empresas de moda sustentável dos países mencionados, através da realização de estudos de caso. Os resultados mostram que pequenas empresas de moda sustentável compartilham a preocupação com o bem-estar social dos participantes da cadeia de suprimentos e oferecem peças e acessórios visando qualidade e durabilidade. No entanto, elas apresentam diferentes estratégias de design e diferem em relação aos materiais utilizados. Além do design, faz parte da implementação da circularidade a oferta de serviços como reparos, onde mesmo com a transferência da propriedade, aumenta a interação da empresa com os clientes. Os sistemas de devolução, referentes à coleta e gerenciamento de roupas e acessórios usados, são importantes embora ainda não amplamente implementados ou utilizados, o que indica algumas barreiras. Desafios de design e altos custos devido a matérias primas, processos de produção manuais e pagamento justo da mão de obra são outros desafios comuns