Connecting reverse logistics with circular economy in the context of Industry 4.0

Abstract

PurposeReverse logistics (RL) has become integral in modern supply chains, with many companies investing in circular economy (CE), a recuperative and effective industrial economy. The traditional linear model triggered many negative environmental consequences such as climate change, ocean pollution, loss of biodiversity and land degradation. The development of RL strategies that support the transition between RL to CE is crucial. The purpose of this paper is to connect RL with CE in the context of Industry 4.0 and develop a hierarchal structure to explore the relationship between RL and CE critical success factors in the context of Industry 4.0.Design/methodology/approachThis study used both qualitative and quantitative approach. Literature review in collaboration with the Delphi method is used to identify and validate critical success factors. Then, the ISM-based model and MICMAC method were used to determine the relationship between CE and RL success factors and its driving and dependence power.FindingsThis study result shows that waste reduction, skilled employees and expert's involvement and top management commitment and support will provide guidelines and paths for implementing CE and RL, leading to the competitiveness of a firm.Practical implicationsThe findings provide managerial insight, particularly useful to third-party logistics companies' managers who are looking to implement RL and CE, to help prioritize where to invest company resources to generate prime difference. Furthermore, this study also identified Industry 4.0 technologies, which would tackle top identified critical success factors within the hierarchical model such as block chain and digital platforms.Originality/valueThis paper contributes to the literature by exploring the connection between RL and CE in the context of Industry 4.0 that determines the critical success factors enabling sustainable inter-firm collaboration.

The role of digital technologies in supporting the implementation of circular economy practices by industrial small and medium enterprises

“…Horizontal and vertical systems integration (HVSYS) can facilitate access to data (Hirota et al, 2022; Trevisan, Zacharias, Castro, & Mascarenhas, 2021), particularly allowing collaboration among different stakeholders (Awan et al, 2022; del Vecchio et al, 2021; Khan, Laalaoui, et al, 2022). This offers great opportunities for recycling activities and the redesign of products and processes (Oyinlola et al, 2022).…”

Reverse Logistics Practices: A Dilemma to Gain Competitive Advantage in Manufacturing Industries of Pakistan with Organization Performance as a Mediator

“…The need for reverse logistics in Pakistan is further amplified by the global shift towards sustainability and the circular economy [13]. Firms in developing countries like Pakistan increasingly recognize that reverse logistics can lead to substantial cost savings, improved customer satisfaction [14], and enhanced corporate image, all of which are crucial for gaining a competitive edge in the global market [15].…”

An extended ISM and MICMAC method under neutrosophic environment

“…The ISM approach is used to create a factor ranking model, while the MICMAC analysis method is used to define the influence of the driving and the dependence between the factors (Khan et al, 2022). The MICMAC algorithm follows these steps (Kaswan and Rathi, 2019;Wang et al, 2018).…”

“…The output of the final reachability matrix of ISM method is inputted to the MICMAC analysis. The ISM approach is used to create a factor ranking model, while the MICMAC analysis method is used to define the influence of the driving and the dependence between the factors (Khan et al. , 2022).…”