Closed-loop production systems—A sustainable supply chain approach

Abstract

Closed-loop production systems strive for sustainability by improving economic and environmental goals simultaneously. We note that many negative environmental impacts, such as waste, energy consumption, transport processes and packaging, can be avoided if companies establish closed-loop production systems. In this contribution we outline the concept of sustainable supply chain networks (SSCN) as a suitable means of designing closed-loop production systems. The implementation of SSCN allows the process links between the companies in a supply chain to close, which facilitates the transformation from a flow economy into a circular economy. A circular economy improves sustainability and ultimately leads to improvements in economic and environmental performance.