Abstract
PurposeCircular economy (CE) initiatives are taking hold across both developed and developing nations. Central to these initiatives is the reconfiguration of core supply chain management (SCM) processes that underlie current production and consumption patterns. This conceptual article provides a detailed discussion of how supply chain processes can support the successful implementation of CE. The article highlights areas of convergence in hopes of sparking collaboration among scholars and practitioners in SCM, CE, and related fields.Design/methodology/approachThis article adopts a theory extension approach to conceptual development that uses CE as a “method” for exploring core processes within the domain of SCM. The article offers a discussion of the ways in which the five principles of CE (closing, slowing, intensifying, narrowing, dematerialising loops) intersect with eight core SCM processes (customer relationship management, supplier relationship management, customer service management, demand management, order fulfilment, manufacturing flow management, product development and commercialization, returns management).FindingsThis article identifies specific ways in which core SCM processes can support the transition from traditional linear approaches to production and consumption to a more circular approach. This paper results in a conceptual framework and research agenda for researchers and practitioners working to adapt current supply chain processes to support the implementation of CE.Originality/valueThis article highlights key areas of convergence among scholars and practitioners through a systematic extension of CE principles into the domain of SCM. In so doing, the paper lays out a potential agenda for collaboration among these groups.
Highlights
Human activity is pushing Earth towards a series of “tipping points”, with the potential to trigger dramatic changes in the environmental conditions that support modern society (Barnosky et al, 2012; Heikkurinen, 2018)
Central to circular economy (CE) initiatives is a reconfiguration of core supply chain processes that underlie production and consumption patterns
Few studies have systematically investigated the intersection between core supply chain processes and CE
Summary
Human activity is pushing Earth towards a series of “tipping points”, with the potential to trigger dramatic changes in the environmental conditions that support modern society (Barnosky et al, 2012; Heikkurinen, 2018). Transitioning current production patterns to a functioning CE requires overcoming technological, financial and institutional barriers (Mathews and Tan, 2011; Russo et al, 2019a, b) These challenges are faced by supply chain managers on an almost daily basis, in ways that are not always systematic, consistent or motivated by a CE orientation. CLSCM focuses on the return, disposition, and value recapture of post-sale products (Guide and Van Wassenhove, 2009) Each of these approaches provide important insights, they lack a coherent set of organizing principles that can overcome their differences. Adopting a CE perspective–with its five principles of closing, slowing, intensifying, narrowing and dematerializing material and energy loops, as defined in Table 1 – might allow researchers and managers to incorporate insights from GSCM, SSCM and CLSCM within a systematic framework that can help guide the rethinking of current modes of economic activity.
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