The development and adoption of the concept of circular economy in the last two decades have been remarkable. However, despite its widespread adoption, little progress has been made regarding its measurement, especially in manufacturing SMEs. This paper, therefore, proposes a Circularity Measurement Toolkit (CMT) which enables the assessment of the degree of circularity in manufacturing SMEs. A conceptual CMT framework, which provided the basis for the proposed tool and that defined the different types of circular practices and a classification or levels of circularity was developed from an extensive literature reviewed. To ensure the structure's accuracy of the proposed CMT in terms of requirements to be measured, the monitoring process and actions involved, the tool was verified through a Delphi-study. Furthermore, its practicality was validated through a case study approach in a manufacturing SME. This paper contributes by filling a gap in the CE measurement field through the proposal of the CMT. Besides providing an evaluation of the degree of circularity in the practices of manufacturing SMEs, companies can also employ the proposed CMT to identify corrective actions or future efforts for the adoption of CE practices.
The concept of circular economy (CE) has proven its worth due to the scarcity of natural resources and huge amounts of wastage which impacts the environment. Thus, the adoption of the CE concept in the supply chain becomes critical. However, due to the complex nature of processes/activities in the circular supply chain (CSC), managing risk has become a priority to avoid disruption. In current literature, no discussion has been conducted on how to analyse the risks in the context of CSC. Therefore, to fill this literature gap, this study concentrates on identifying and analysing the risks to promote effective circular initiatives in supply chains in the context of the manufacturing industry, thus minimising the negative environmental impact. A total of 31 risks were identified through an extensive literature review and discussions with experts. A grey‐based decision‐making trial and evaluation laboratory (DEMATEL) method is applied by incorporating the experts' knowledge to compute prominence and cause/effect scores to develop an interrelationship map. Finally, a vulnerability matrix for risk categories is developed using the average of prominence and cause/effect scores of risks. The results show that transparent process is the most prominent risk and branding is the least significant risk. By using the average prominence and cause/effect score, a risk category, namely, financial risk, is identified as most vulnerable to CSC. These findings will help industry managers not only to prepare business strategies in the adoption of CE initiatives in supply chains by eliminating risks but also in minimising negative environmental impact.
The adoption/utilisation of Lean, Agile and Green (LAG) practices in both the manufacturing and service sector is rising. However, there yet remain a research gap to precisely evaluate the relationship between LAG practices and business competitiveness (e.g, achieving reduction in cost, lead time and environmental recyclable waste). This research aims to explore this relationship, specifically in fast-moving consumer goods (FMCG) businesses. The hypothesised relationships are tested with data collected from 96 FMCG companies. Structural Equation Modelling is applied to evaluate different channels of achieving business competitiveness through the adoption of Lean, Agile and Green. The findings suggest that competitive outcomes vary with the adoption of LAG practices in specific product life cycle stages. This implies that awareness of the product life cycle concept is essential. A combination of LAG practices for the sole purpose of reducing environmental waste is negatively related to environmental waste reduction. LAG practices are more efficiently adopted when the adopters are equipped with expert knowledge on the paradigms and their individual practices. This research has approached the attainment of competitiveness in the FMCG businesses by analysing management efforts that improve cost performance, lead time and environmental sustainability aspects of business operations. The research has also considered the product life cycle stages in analysing the impacts of management efforts. AbstractThe adoption/utilisation of Lean, Agile and Green (LAG) practices in both the manufacturing and service sector is rising. However, there yet remain a research gap to precisely evaluate the relationship between LAG practices and business competitiveness (e.g, achieving reduction in cost, lead time and environmental recyclable waste). This research aims to explore this relationship, specifically in fast-moving consumer goods (FMCG) businesses. The hypothesised relationships are tested with data collected from 96 FMCG companies. Structural Equation Modelling is applied to evaluate different channels of achieving business competitiveness through the adoption of Lean, Agile and Green. The findings suggest that competitive outcomes vary with the adoption of LAG practices in specific product life cycle stages. This implies that awareness of the product life cycle concept is essential. A combination of LAG practices for the sole purpose of reducing environmental waste is negatively related to environmental waste reduction. LAG practices are more efficiently adopted when the adopters are equipped with expert knowledge on the paradigms and their individual practices. This research has approached the attainment of competitiveness in the FMCG businesses by analysing management efforts that improve cost performance, lead time and environmental sustainability aspects of business operations. The research has also considered the product life cycle stages in analysing the impacts of management efforts.
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