Making a Transition toward more Mature Closed-Loop Supply Chain Management under Deep Uncertainty and Dynamic Complexity: A Methodology

Abstract

This article develops a methodology to empirically study and cope with deep uncertainty and dynamic complexity when the actors in a traditional supply chain make a transition toward more mature closed-loop supply chain (CLSC) management. The methodology addressed calls for innovative research and decision-making approaches in this field. Mature, in this context, refers to moving operationally and mentally away from a stochastic, one-dimensional and static approach to CLSC management, towards an exploratory, multi-dimensional and dynamic approach. To empirically study and cope with deep uncertainty and dynamic complexity in a CLSC context, a conceptual framework and related methodological toolbox are developed, together called the ‘closed-loop integration: collective keystones methodology’ (hereinafter CLICK methodology). The conceptual framework entails six maturity stages, which have been defined based on the well-known capability maturity framework and the concept of double-loop learning. Based on the conceptual framework, methods to equip the toolbox have been systematically identified and evaluated. The study identified 31 potentially appropriate methods, varying from non-participatory methods, to the active engagement of actors and stakeholders, and from analytical methods to evaluation/assessment methods.

Main Dimensions in the Building of the Circular Supply Chain: A Literature Review

“…However, the theoretical concept needs to be translated into reality through strategies and guidelines that allow a more rational productive system to be achieved [44,57]. Six stages of maturity have been established based on a logic sequence of general management activities-problem identification, objective and intervention activities development activities, implementation and operation activities, and monitoring activities [58] (p. 23). Therefore, circular supply chain would be a guide for mapping the necessary key activities, potential challenges, and available resources so that the company can proactively develop individual and organizational tools to achieve its economic, social, and environmental objectives [30].…”

“…Considering the complexity of applying the circular economy approach to the supply chain, the sector requires a deliberate and detailed monitoring system which should be adaptive to technological changes [5,34,101]. The new smart technologies allow the development of new functionalities necessary for productive and management change [58]. Industry 4.0 term is used for the fourth industrial revolution incorporating factors such as the Internet of Things (IoT), augmented reality, additive manufacturing (AM), big data, cloud computing, simulation, industrial automation, and cybersecurity [102].…”

“…The new technologies allow the development of new functionalities necessary for productive and management change [58]. The main role of information and communication technologies is the application of push and saving impacts to optimize the economic processes of production, consumption and circulation.…”

“…As a final point, the environmental dimensions, whose relationship to the circular supply chain has been established in the Proposition 4. Through long-term agreements [15], the establishment of reward systems [58], and the achievement of financial and legal commitments [109], the company can capture value. Because of the need for collaboration between different actors, there is a need to employ a multidisciplinary system in solving problems where actors can be held responsible for others for their tasks and deliveries [83].…”

Towards Rail-Road Online Exchange Platforms in EU-Freight Transportation Markets: An Analysis of Matching Supply and Demand in Multimodal Services

“…Finally, the maturity growth theory [8] was applied to understand the varying levels of performance of practices (as indicated in Figure 1 in terms of the three levels, create, curate, and cultivate) and the challenges for transition to a higher maturity. Distinguishing between different maturity levels is the basis for understanding the process of improvement of online exchanges as suggested by platform theory, although the number of levels assumed in this literature differ from three [22] to six (e.g., [23]). The common assumption in these studies is that actors are collaboratively willing to make such a transition, provided their interests and risks can be balanced through a viable value proposition.…”