Abstract
The use of production by-products as feedstock offers benefits in terms of circularity, waste reduction, and enhanced local value-add. In this paper, we examine the institutional and supply network collaborations required to shift from global to near-sourcing using by-products of previously unrelated production activities. The case study of straw stubble agri-waste is examined as it exhibits multiple product-process valorisation opportunities, generates social welfare gains for farmers, and addresses a critical societal need of reducing pollution. Drawing on circular economy and supply network configuration literature, the research involved the consideration of local resource availability, product-production process technology options, partnering arrangements, and network governance. The results reveal multiple feedstock product-process conversion scenarios, each representing potential intermediate and end-use products/markets. Two pathways were identified offering industrial-scale valorisation, namely straw-stubble as a feedstock for i) building products and ii) energy purposes. Circular supply network design parameters emerge from cross-case analysis suggesting alignment across feedstock network structure, product-processing pathways, and the configuration of public-private partnerships is necessary. This paper develops supply network configuration design approaches and related partnering models by providing a structured framework for identifying commerically viable by-product driven supply networks that leverage the proximity of non-traditional suppliers exploiting local resources. This research contributes to the design of circular supply networks and partnership configurations for the valorisation of by-products.
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