Logistical Support for the Development of the Circular Economy

Abstract

The aggravation of ecological problems at the global level, as well as the need to solve the economic and social problems of humanity, require the implementation of important economic transformation measures. The circular economy (or closed-loop economy) is a form of production organization related to extending the life cycle of products and minimizing harmful disposal and waste. It is also about sharing, renting, reusing, repairing, refurbishing and recycling existing materials and products as much as possible. As with any type of economic model, the functioning of the circular economy requires a corresponding logistics system. In this context, together with the acceptance of the concept of ecological efficiency and "green" economy in many countries, the new approach of "green logistics" has emerged in international practice. The purpose of this article is to generalize theoretical approaches and to substantiate the conceptual provisions of logistical support for the development of the circular economy in the conditions of global transformations. Methodology. The methodological basis of the study is the scientific work of scientists on the problems of green economy, circular economy, environmental management, waste management, logistics management. The research was conducted using general scientific methods: analysis and synthesis - to summarize the existing conceptual approaches and regulations, scientific developments on the development of the circular economy, greening of logistics systems, green logistics, clarification of terminology; classifications - to systematize theoretical approaches to the definition of "green logistics" proposed by various scientific schools; structural and logical generalization - to determine the key logistics approaches to the development of the circular economy and the principles of green logistics for the implementation of circular business models. Results. In order to present the specific aspects of circular economy logistics, the opinions of researchers from different countries were studied to outline a related synthetic vision. After conducting the study, the current characteristics of the circular economy were identified. Then the current international trends in logistics development were identified. An important trend is the development of "green" logistics. It has been found that many conceptual approaches to the definition of the terms "green" logistics and environmental logistics are generally accepted and have a broader meaning, without taking into account the specifics of the functioning of different areas of economic activity, including the transport sector and logistics activities. Scientific views on the interpretation of the nature and content of the concept of "green" logistics are generalized. It is proposed to consider the concept of "green" logistics as a tool of circular economy. It offers companies a number of advantages and is based on certain principles. As a synergy effect, the massive implementation of the circular economy and green logistics can significantly contribute to solving the socio-economic problems of humanity. Practical implications. The practical significance of this study lies in the fact that the conceptual provisions can be used in practice when developing an organizational and economic mechanism for implementing the concept of green logistics. This mechanism should include such blocks as: management of supplies and purchases of material resources; production of products; warehousing and inventories; logistics flows; risks of logistics activities; logistics service processes; waste recycling; innovation and change. The introduction of the proposed organizational and economic mechanism will reduce the cost of managing the movement of logistics flows and increase the level of environmental safety. This is one of the most important requirements for the implementation of the concept of corporate social responsibility of business in a circular economy. Value/originality. The authors' approach to formulating the category "green logistics" is theoretically substantiated.