Circular Supply Chain Management and Circular Economy: A conceptual model
DOI:
https://doi.org/10.21834/ebpj.v7iSI7.3762Keywords:
Circular, Closed-Loop, Open-Loop, Sustainability, Supply ChainAbstract
This study develops a circular supply chain management model. The review shows how CSCM promotes green supply chain management and sustainability by extending its sustainable dimension beyond the original producer. Closed-loop and open-loop supply chains are CSCM components. Using contingency theory and transaction cost theory, the CSCM model proposes that product circularity in closed-loop and open-loop supply chains affects a company's circular economy performance. This model explains CSCM's popularity in current literature, which supports the circular economy.
References
Ahi, P., & Searcy, C. (2015). Assessing sustainability in the supply chain: A triple bottom line approach. Applied Mathematical Modelling, 39(10), 2882-2896.
Basiri, A. H., Shemshadi, A., & Tarokh, M. J. (2011). A Closed-Loop Logistics Model for Green Supply Chain Management. International Journal of Applied Logistics, 2(3), 1–15.
Batista, L., Gong, Y., Pereira, S., Jia, F., & Bittar, A. (2018). Circular supply chains in emerging economies – a comparative study of packaging recovery ecosystems in China and Brazil. International Journal of Production Research, 57(23), 7248-7268.
Buyong, S. Z., Syed Marzuki, S. Z., Junid, J., & Abdul Kadir, M. A. B. (2021). Eco Business Practices Among Malaysian Green Technology Companies Towards Expected Business Benefits. Environment-Behaviour Proceedings Journal, 6(17), 25-32.
Cooper-Ordoñez R.E., Altimiras-Martin A., Filho W.L. (2019) Environmental Friendly Products and Sustainable Development. In: Leal Filho W. (eds) Encyclopedia of Sustainability in Higher Education. Springer, Cham. https://doi.org/10.1007/978-3-319-63951-2_131-1
European Parliament (2015). Circular economy: definition, importance and benefits. News European Parliament. Retrieved from https://www.europarl.europa.eu/news/en/headlines/economy/20151201STO05603/circular-economy-definition-importance-and-benefits
Farooque, M. Zhang, A., Thürer, M., Qu, T., & Huisingh, D. (2019). Circular Supply Chain Management: A Definition and Structured Literature Review. Journal of Cleaner Production, 228, 882-900.
Fleischmann, M., Bloemhof-Ruwaard, J. M., Dekker, R., van der Laan, E., van Nunen, J. A. E. E., & Van Wassenhove, L. N. (1997). Quantitative models for reverse logistics: A review. European Journal of Operational Research, 103(1), 1–17.
Fleischmann, M., Krikke, H. R., Dekker, R., & Flapper, S. D. P. (2000). A characterisation of logistics networks for product recovery. Omega, 28(6), 653-666.
Georgiadis, P., & Besiou, M. (2009). Environmental Strategies for Electrical and Electronic Equipment Supply Chains: Which to Choose? Sustainability, 1(3), 722-733.
Geyer, R., & Jackson, T. (2004). Supply loops and their constraints: The industrial ecology of recycling and reuse. California Management Review, 46(2), 55-73.
Guide Jr., V. D. R., & Van Wassenhove, L. N. (2001). Managing product returns for remanufacturing. Production and Operations Management, 10(2), 142-155.
Gurtu, A., Searcy, C., & Jaber, M. Y. (2015). An analysis of keywords used in the literature on green supply chain management. Management Research Review, 38(2), 166-194.
Hervani, A. A., Helms, M. M., & Sarkis, J. (2005). Performance measurement for green supply chain management. Benchmarking: An International Journal, 12(4), 330-353.
Jasni, N. S., Yusoff, H., & Wibowo, P. (2021). Internal Business Factors for Business Sustainability: A Realistic View from Sustainability Managers. Environment-Behaviour Proceedings Journal, 6(18), 3-8.
Kalmykova, Y., Sadagopan, M., & Rosado, L. (2018). Circular economy – From review of theories and practices to development of implementation tools. Resources, Conservation and Recycling, 135, 190-201.
Kenné, J. –P. & Dejax, P., & Gharbi, A. (2012). Production planning of a hybrid manufacturing–remanufacturing system under uncertainty within a closed-loop supply chain. International Journal of Production Economics, 135(1), 81-93.
Kortmann, S., & Piller, F. (2016). Open Business Models and Closed-Loop Value Chains: Redefining the Firm-Consumer Relationship. California Management Review, 58(3), 88-108.
Krikke, H., Le Blanc, I., & Van de Velde, S. (2004). Product modularity and the design of closed-loop supply chains. California Management Review, 46(2), 23–39.
Krikke, H., Hofenk, D., & Wang, Y. (2013). Revealing an invisible giant: A comprehensive survey into return practices within original (closed loop) supply chains. Resources, Conservation and Recycling, 73(2013), 239–250.
Kopicki, R. J., Legg, L. L., & Novak, K. E. (1993). Reuse and recycling: reverse logistics opportunities. Annual Conference Proceedings, Council of Logistics Management, pp. 29-36.
Kumar, S., & Malegeant, P. (2006). Strategic alliance in a closed-loop supply chain, a case of manufacturer and eco-non-profit organisation. Technovation, 26(10), 1127–1135.
Mangla, S. K., Luthra, S., Mishra, N., Singh, A., Rana, N. P., Dora, M., & Dwivedi, Y. (2018). Barriers to effective circular supply chain management in a developing country context. Production Planning & Control, 29(6), 551-569.
OECD (2020). Building back better: A sustainable, resilient recovery after COVID-19. OECD Policy Responses to Coronavirus (COVID-19). Retrieved from https://www.oecd.org/coronavirus/policy-responses/building-back-better-a-sustainable-resilient-recovery-after-covid-19-52b869f5/
Östlin, J., Sundin, E., & Björkman, M. (2008). Importance of Closed Loop Supply Chain Relationships for Product Remanufacturing. International Journal of Production Economics, 115(2), 336-348.
Prahinski, C., & Kocabasoglu, C. (2006). Empirical research opportunities in reverse supply chains. Omega, 34(6), 519–532.
Rao, P., & Holt, D. (2005). Do green supply chains lead to competitiveness and economic performance? International Journal of Operations & Production Management, 25(9), 898–916.
Russell, C. L. (2005). An Overview of the Integrative Research Review. Progress in Transplantation, 15(1), 8-13.
Saibani, N. (2010). Performance Measurement for Reverse and Closed-loop Supply Chains. Unpublished Thesis, University of Nottingham.
Shaharudin, M.R. (2021). The Role of Transport in Reverse Distribution Chains. The Open Transportation Journal, 15(1), 256-259.
Shaharudin, M. R., Tan, K. C., Kannan, V., & Zailani, S. (2019). The mediating effects of product returns on the relationship between green capabilities and closed-loop supply chain adoption. Journal of Cleaner Production, 211, 233–246.
Shaharudin, M. R., Govindan, K., Zailani, S., Tan, K. C., & Iranmanesh, M. (2017). Product return management: Linking product returns, closed-loop supply chain activities and the effectiveness of the reverse supply chains. Journal of Cleaner Production, 149, 1144-1156.
Shaharudin, M. R., Zailani, S., & Tan, K. C., 2014. Barriers to product returns and recovery management in a developing country: investigation using multiple methods. Journal of Cleaner Production, 96, 220-232.
Soufani, K., & Loch, C. (2021). Circular Supply Chains Are More Sustainable. Why Are They So Rare? Harvard Business Review. Retrieved from https://hbr.org/2021/06/circular-supply-chains-are-more-sustainable-why-are-they-so-rare.
Stewart, R., Niero, M., Murdock, K., & Olsen, S. I. (2018). Exploring the Implementation of a Circular Economy Strategy: The Case of a Closed-loop Supply of Aluminum Beverage. Procedia CIRP. 69(1). 810-815.
Stock, J. R. (1998). Development and implementation of reverse logistics programs. Oak Brook, IL: Council of Logistics Management.
Snyder H. (2019). Literature review as a research methodology: An overview and guidelines, Journal of Business Research, 104, 333-339.
Talbot, S., Lefebvre, É., & Lefebvre, L.-A. (2007). Closed-loop supply chain activities and derived benefits in manufacturing SMEs. Journal of Manufacturing Technology Management, 18(6), 627–658.
Torraco, R. J. (2005). Writing integrative literature reviews: Guidelines and examples. Human Resource Development Review, 4(3), 356-367.
UN (2019). The Sustainable Development Agenda. Retrived from https://www.un.org/sustainabledevelopment/development-agenda/
Vachon, S., Klassen, R. D., & Johnson, P. F. (2001). Customers as green suppliers: Managing the complexity of the reverse supply chain. In Sarkis, J. (Ed.) Greener Manufacturing and Operations: From Design to Delivery and Back (pp. 136–149). Sheffield: Greenleaf Publishing.
Yatim (2018). Circular economy for sustainable development. The New Straits Times. Retrieved from https://www.nst.com.my/opinion/columnists/2018/02/332848/circular-economy-sustainable-development
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 Mohd Rizaimy Shaharudin, Ahmad Rais Mohamad Mokhtar, Preecha Wararatchai, Rafeah Legino
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.