Supply Chain Configurations in the Circular Economy: A Systematic Literature Review

Abstract

Abstract:As the circular economy (CE) gains traction in literature and practice, several academic communities are opening up spaces that move away from the CE as a pure engineering concept. This systematic literature review (n = 77) analyses and discusses the fragmented body of knowledge on the meso-level of supply chains (SCs): (a) to find common ground that underpins the current implementation of the CE on this level; and (b) to identify drivers, inhibitors, and enablers from which CE SC configurations emerge. The review finds that there remain differences in CE definitions that result from claimed antecedents and scopes, resulting in distinct research streams. On the meso-level, eco-industrial parks, environmental SCs, and closed-loop SCs each face significant challenges. The latter potentially offers the largest environmental benefits but engenders radical changes for business models and exposes SCs to more risk. We firstly argue for moving away from using a prescriptive set of practices as definitions for the CE towards a set of overarching goals to allow for the inclusion of future practices and techniques. Secondly, we highlight that research going beyond the meso-level to consider the wider social and institutional environment is needed to solve current challenges.

Exploring How Usage-Focused Business Models Enable Circular Economy through Digital Technologies

“…So far, the most prominent definition of CE has been provided by the Ellen MacArthur Foundation [3], who defines CE as a "system restorative and regenerative by design, which aims to maintain products, components and materials at their highest utility and value" [2,25,[27][28][29]. The CE concept has its roots in other schools of thought, such as industrial ecology, industrial symbiosis, blue economy, Product-Service System, cradle-to-cradle, and biomimicry [2,27,29,30]. However, the body of knowledge regarding CE is still in its infancy [4].…”

Static and Dynamic Pricing Strategies in a Closed-Loop Supply Chain with Reference Quality Effects

“…Approximately 1.3 billion tons of solid waste was generated in cities worldwide in 2017. It is estimated that by 2025, the annual amount of solid waste will be about two times greater than the amount in 2017 [1,2]. Meanwhile, the circular economy, replacing the "take, make, consume, and dispose" patterns with closed-loops of material flows by combining a number of different processes including maintenance, repair, reusing, refurbishing, remanufacturing, and recycling, has created much more concern in the academic world and in practice [2,3].…”

The Effect of Introducing Upgraded Remanufacturing Strategy on OEM’s Decision

“…Increasing resource scarcity, which leads to rising resource prices and price volatility, has a negative impact on firms and supply chain [24]. Thus, the interdisciplinary research on supply chains and sustainability, namely sustainable supply chain, has received extensive attention [25].…”

“…Centobelli et al [28] identify a taxonomy that is used by logistics service providers to achieve their environmental sustainability strategies from the perspectives of green aims, green practices and technological tools. Masi et al [24] show that the circular economy creates synergies between environmental and economic development goals and reshapes competitive priorities for firms and supply chains. As an OEM manufacturing strategy, sustainable supply chain must be integrated into the overall corporate strategy and has a profound impact on corporate performance [29].…”