Circular supply chains theoretical gaps and practical barriers: A model to support approaching firms in the era of industry 4.0

Abstract

Unlike linear supply chains, Circular Supply Chains (CSCs) require return flows able to capture additional value and involving different stakeholders. The successful interaction of Circular Economy and Industry 4.0 (I4.0) towards a circular, efficient, and competitive transition of current supply chains is unveiled by both current state of theory and practice. Notwithstanding literature’s multiple attempts to flank supply chains in this complex shift, the several theoretical frameworks proposed by academics are still not fully capable of bridging linear supply chains to their transitions towards circularity due to a lack of systemic, company-specific, and practical approaches. In addition, practical impediments, risks and treats hindering CSCs development are still under-investigated and, therefore, further research is required in this domain. To address these gaps, this paper aims to develop and propose a model able to support companies in approaching the transition towards CSCs, also embedding guidelines and recommendations in the different steps of this path. The model has been conceptualized based on five I4.0-driven CSCs categories recently proposed through a systematization of the knowledge extant in literature (I4.0 enabling technologies, performance tools and indicators, challenges and barriers, business models and strategies, best practices) and on a gap analysis performed in literature to unveil theoretical gaps and practical barriers in the CSC domain. Finally, the model has been refined and validated by ten selected academic experts through an online asynchronous survey, leading to the detection of seven recurrent practical barriers (lack of tax policies and incentives, weak environmental laws and regulations, limited financial resources and support, high investments and implementation costs, lack of coordination and collaboration among the SC members, lack of technological resources and infrastructures, lack of compatibility and integration of technical platforms) as the most critical in the CSC transition. The model, structured in four main phases (conceptualization, design, implementation and measurement) and grounded on the five categories derived from the literature, addresses each of the steps of the CSC transition according to circular strategies and optimal digital technologies. Managerial implications emerge from the systematization and categorization of methods, approaches and warnings operated in the model proposed. The model turns to be capable of enhancing the realization of the entire CSC process in a digital context, acting against the CSC theoretical gaps and practical barriers detected in the gap analysis conducted in this research.