Building a data‐driven circular supply chain hierarchical structure: Resource recovery implementation drives circular business strategy

Abstract

The circular supply chain has recently received more attention as a relevant solution to effectively tackle environmental issues while simultaneously achieving resource recovery and circular business strategy benefits. This study builds a hierarchical circular supply chain structure from big data including qualitative and quantitative information. This study uses data-driven analysis to clarify circular supply chain trends and opportunities in practice. A valid hierarchical circular supply chain structure is composed of a big dataset. However, the attributes of the hierarchical circular supply chain structure must be explored to identify the opportunities and challenges of the circular supply chain. A combination of data-driven content and cluster analysis, including the fuzzy Delphi method, fuzzy decision-making trials, evaluation laboratories, and the entropy weight method, is utilized to address this gap. The study analyzes a set of five attributes from the literature, and 23 criteria are validated. The results show that resource recovery implementation, Industry 4.0 and digitalization, and reverse supply chain practice pertain to the causal group, while circular business strategy and life cycle sustainability assessment are included in the effect group. The conclusive criteria comprise material efficiency, waste-to-energy, machine learning, e-waste, plastic recycling, and artificial intelligence. K E Y W O R D S circular business strategy, circular supply chain, data-driven analysis, Industry 4.0 and digitalization, resource recovery, reverse supply chain 1 | INTRODUCTION Resource paucity, biodiversity inadequacy, climate change, and other forms of environmental adversity underscore the need for firms to use fewer resources and identify cleaner production techniques. In this context, attention to the circular supply chain (CSC) concept is intensifying (Rweyendela & Kombe, 2021). The CSC concept offers sustainable advantages by separating value formation from resource usage, leading to lower resource consumption and higher economic value acquisition from waste flows (Bressanelli et al., 2021;Tseng, Tran, et al., 2021). Numerous studies have employed CSC principles to enhance resource efficiency by expanding the lifetime usage of a resource via a resource recovery procedure and improving the number of resources consumed along with the waste created (Krishnan et al., 2020;Munir et al., 2021). However, CSC initiation still involves an array of difficulties and complexities such as the diversification of the performance metrics of various opportunities and challenges in Abbreviations: CSC, circular supply chain; FDM, fuzzy Delphi method; FDEMATEL, fuzzy decision-making trial and evaluation laboratory; EWM, entropy weight method.

Strategic planning oriented to circular business models: A decision framework to promote sustainable development

“…In that regard, circular business strategies are known to promote circular supply chains (Babu et al, 2021), since they encourage companies to address environmental effects and resource scarcity (Goffetti et al, 2022) and lead to long‐term economic benefits (Tura et al, 2019). Nonetheless, for circular business strategies and thus circular supply chains to be realized, overcoming challenges and designing novel or improving existing practices, a change in management vision and strategy is needed (Tseng et al, 2022). This is addressed by the SPDF‐CBM by sensitizing top management about CE (Stage A), defining an envisioned CE status for the company (Stage B), and having them identify the gap to reach that vision (Stage 3).…”

“…The SPDF-CBM model was inspired by the need to identify paths for greater BM circularity, seeking to help overcome the concerns of linear BMs, which have been characterized by excessive resource consumption. However, in order to effectively narrow, slow, or close resource loops, companies need to make circular actions part of their strategic decisions and practices (Tseng et al, 2022).…”

Actions and approaches for enabling Industry 5.0‐driven sustainable industrial transformation: A strategy roadmap

“…Sustainable value network reformation (SVR) entails developing digital supply networks that are more modular, decentralized, and adaptive (Maddikunta et al, 2022). Under SVR, modularization involves addressing the ever‐increasing complexity of contemporary supply chains by transforming their linear designs into more circular and dynamic designs (Tseng et al, 2022). Modularization uses modern technologies to digitalize supply chain notes (e.g., production facilities or distribution channels) and transfer them into reconfigurable modules to develop interconnected dynamic supply networks that create new business models and profit tools (Ghobakhloo, Iranmanesh, et al, 2021).…”

Sustaining circular economy practices in supply chains during a global disruption

“…Kayikci et al (2021) also agreed that digitalized CE practices, such as an SCSC model, can help to achieve SDGs, also investigating the enablers of SCSC. Similarly, Tseng et al (2022) highlighted the value of industry 4.0 and digitalization, while constructing a hierarchical circular supply chain (CSC) framework based on data-driven analysis comprising qualitative and quantitative information. Considering the importance of technologies for implementing CE, Gupta and Singh (2021) (Agarwal et al, 2022).…”