The circular supply chain: a paradigm shift towards sustainable resource

Abstract

In light of recent studies, we find that the circular economy has become a key component in corporate strategies to promote environmental sustainability. In this regard, corporations are increasingly adopting the circular economy perspective to review their supply chain management practices in a sustainable manner. This paradigm shift suggests the need for a circular approach to supply chain management, moving from simple efficiency and waste reduction to a philosophy that promotes product redesign, reuse and transformation. The circular supply chain approach involves a number of interlinked elements, including product design for circularity, reverse logistics, remanufacturing (re-manufacturing), recycling and waste management. These components are integrated at different stages of the supply chain with the aim of maximising resource recovery and minimising environmental impact. Particular emphasis is placed on supply chain collaboration, which is considered one of the key drivers of the circular economy and circular supply chains. The analysis of the circular supply chain management concept highlights five dimensions of circular supply chain management: closed-loop supply chain management, reverse supply chain management, remanufacturing supply chain management, recycling supply chain management and industrial symbiosis.