Developing a Framework for Closed-Loop Supply Chain and Its Impact on Sustainability in the Petrochemicals Industry

Abstract

Companies rely on formulating, implementing, and monitoring strategies in social, environmental and economic aspects to ensure that they achieve their goals and keep abreast of developments related to sustainability requirements. Therefore, our study develops a system to integrate the closed-loop supply chain approach in the petrochemical sector. The research follows the quantitative-based approach by collecting data through a questionnaire directed to employees in the supply chain departments, including 230 questionnaires that were collected. Correlation and structural equation models (SEM) were used. This technique consists of multiple regression analysis and factor analysis and analyses the structural relationship between the underlying structures and the measured variables. The results indicated a significant relationship between the supply chains that have a loop from the following perspectives: economic motivations, customer awareness, environmental legislation, and sustainability. By increasing financial reasons, customer awareness and environmental legislation, sustainability will increase as they all move in the same direction. Therefore, the overall effect of a closed-loop supply chain is positive and significant.

A bi-objective model for designing a green closed-loop supply chain network in a petroleum complex considering transportation constraints: A case study

“…First, this approach adds value by reducing costs or increasing revenue in times of increased competition. Second, to encourage better environmental monitoring, the closed-loop supply chain addresses environmental concerns raised by an increasing number of different stakeholder groups such as customers, consumers, and the general public (2). In summary, the CLSC is basically a win-win approach, as it can actually save a business money as well as reduce waste and environmental pollution.…”

Managing the Material Flow in Textile and Clothing Closed-loop Supply Chain with Product, Material, and Energy Recoveries: A Conceptual Framework

“…For the last decade, reverse logistics (RL) and closed-loop supply chain (CLSC) have attracted many researchers as the two concepts aim to reduce post-consumer wastes, conserve resources, and extend the life cycle of products. The motivation for RL mainly comes from three main aspects: environmental legislation, customer awareness, and economic motivation [1]. RL practice enables the creation of a sustainable supply chain by reducing the use of natural resources and consuming less energy and pure raw materials [2].…”