Enhanced circularity in aftermarkets: logistics tradeoffs

Abstract

PurposeThe purpose of this paper is to identify requirements and tradeoffs on logistics services for enhanced circularity of materials and resources.Design/methodology/approachBased on multiple case study design and abductive reasoning, the study investigates 13 different product categories. The data were analyzed based on theoretical, a priori codes from the literature review. Inductive, emerging codes were added to the coding scheme during the analysis.FindingsRequirements of logistics services to support slowing of resource flows are categorized with respect to initiator, location of the service, single or multiple actors, and transportation of parts, products and people. Moreover, the study identifies new logistics tradeoffs: material and people, knowledge and people, and information and knowledge. Transportation of product, people and parts can be reduced by increasing local knowledge and improve information sharing.Research limitations/implicationsThis review contributes to the understanding of the relationship between logistics services and enhancement of circularity by highlighting requirements on logistics services in the aftermarket supply chain that support slowing of resource flows. To enhance circularity, logistics services must extend the traditional material information flow with the flow of people and knowledge, respectively.Practical implicationsThe categorization provides practitioners and researchers with an overview of requirements and tradeoffs on logistics services to enhance circularity of a particular circular cycle. The implications will provide an opportunity to address environmental impact of transportation and improve the utilization of scarce materials.Social implicationsVariety of tradeoffs in logistics services can enhance slowing and hence circularity of scarce materials.Originality/valueFirst, the authors illustrate how traditional tradeoffs in logistics such as flow of materials, resources and people need to be addressed to enhance circularity through slowing. Second, the authors identify two new tradeoffs in logistics services: knowledge flow and degree of customer involvement.

On the Definition, Assessment, and Enhancement of Circular Economy across Various Industrial Sectors: A Literature Review and Recent Findings

“…While waste management is vital, a CE goes beyond recycling, and waste management companies are expanding their roles upstream into business markets to prevent resources from becoming waste in the first place [99]. Moreover, Gatenholm et al [100] explored logistical flows and trade-offs in aftermarket supply chains to enhance circularity by slowing down resource flows. It identified trade-offs in the aftermarket involving material, people, information, and knowledge, highlighting the need to extend the traditional view of logistics to include the flow of knowledge and people.…”

On the Definition, Assessment and Enhancement of Circular Economy across Various Industrial Sectors: A Literature Review

“…While waste management is vital, a CE goes beyond recycling, and waste management companies are expanding their roles upstream into business markets to prevent resources from becoming waste in the first place [98]. Moreover, Gatenholm et al [99] explored logistical flows and trade-offs in aftermarket supply chains to enhance circularity by slowing down resource flows. It identified trade-offs in the aftermarket involving material, people, information, and knowledge, highlighting the need to extend the traditional view of logistics to include the flow of knowledge and people.…”