Value creation from circular economy-led closed loop supply chains: a case study of fast-moving consumer goods

Mishra, Jyoti; Hopkinson, Peter; Tidridge, Gin

doi:10.1080/09537287.2018.1449245

Cited by 147 publications

(107 citation statements)

References 52 publications

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“…Dependencies from the focal firm on third parties resulted in multiple barriers related to unpredictable quality, timing and quantity of discarded products and materials. Aligning incentives in the supply chain, a fair division of cost and benefits, and exchange of information on availability and quality of waste between actors could be beneficial to overcome these challenges (Rizos et al, 2016;Mishra et al, 2018;Fraccascia and Yazan, 2018).…”

Section: Supply Chain Barriersmentioning

confidence: 99%

“…Mont, 2002;Tukker, 2015;Reim et al, 2015) Moreover, the literature stream on closed loop supply chains (CLSC) provides valuable insights into barriers to organization of closed loops and reverse logistics, which is key for various CBMs that aim to reuse products and materials, such as models based on remanufacturing or recycling (e.g. Souza, 2013;Govindan and Hasanagic, 2018;Mishra et al, 2018;Wei et al, 2015;Shi et al, 2019). However, up to date a systematic and comprehensive conceptualization of the variety of barriers related to the different CBMs is lacking.…”

Section: Introductionmentioning

confidence: 99%

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Exploring barriers to implementing different circular business models

Vermunt

Negro

Verweij

et al. 2019

Journal of Cleaner Production

243

195

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a b s t r a c tEven though much attention has been given to barriers related to implementing circular business models, so far, no studies have focused on how the barriers differ between business models. Ignoring the possibility of such differences could lead to unjustified generalizations about the barriers to implementing circular business models (CBMs). We identified barriers to implementation and compared them for different CBMs by analyzing 43 case studies of CBMs, based on in-depth interviews with 31 Dutch firms. Barriers were analyzed for the following CBMs: circular supplies, resource recovery, product life extension, and the product-as-a-service model. The barriers identified were classified into two broad categories: internal problems related to the firm itself and external barriers related to the firm's environment. This study shows that key challenges were related to the firm's external environment, and that the barriers differed between the four business models studied. Whereas most internal barriers encountered by the product-as-a-service model were to do with organization (for instance, of lease models), the other models reported these barriers less frequently. External supply chain issues were challenging in the resource recovery, product life extension, and circular supplies models, mainly because of great dependence on third parties for the input of discarded products and waste materials. We investigated the strategies firms used to overcome these barriers. From our findings we conclude that to stimulate the development of circular businesses, firms and policy makers should focus on bespoke solutions and strategies for different types of CBMs.

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Section: Supply Chain Barriersmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Exploring barriers to implementing different circular business models

Vermunt

Negro

Verweij

et al. 2019

Journal of Cleaner Production

243

195

View full text Add to dashboard Cite

show abstract

“…So, a circular business model could provide managerial practices for design and implementation of supply chain [29]. There are a wide number of business model archetypes that can be used as a starting point [29,98]. Some studies propose some business models that favor the implementation of circular supply chains.…”

Section: Adaptation Of Logistics and Organizational Managementmentioning

confidence: 99%

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

et al. 2020

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Circular economy is an alternative to the traditional production model and has therefore attracted a great deal of attention from researchers. The change in the production system is accompanied by new logistical needs related both to resources and waste and to the distribution and recovery of products. The circular supply chain involves return processes and the manufacturer intends to capture additional value in the supply chain. In this paper, value chains have been mapped to visualize the links and interactions between the different stages and actors to understand the complexities of these systems and to make informed decisions. For this reason, and based on thorough literature review, the final objective of this work is to achieve a conceptual framework to study circular supply chain, which uses the main theoretical perspectives in strategic management literature. Four dimensions have been identified to support the development of these new supply chains—greater intensity in the relationships established in the supply chain, adaptation of logistics and organizational, disruptive and smart technologies, and a functioning environment. It can be concluded that to develop a new relationship capacity will allow for reaching more frequent, closer relationships with more actors. These relationships will be developed within an adapted organizational and logistical framework that is framed in new business model archetypes. However, dimensions related to the business environment such as sectoral, legislative, and fiscal frameworks must be incorporated.

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“…In last two decades, a closed-loop supply chain (CLSC) is gaining increasing attention from both industry practitioners and academics due to alleged benefits for sustainable development and growing environmental awareness among consumers and environmental regulations [1][2][3][4][5][6][7]. Government organizations play an impressive role in the development of sustainable product manufacturing and re-manufacturing decisions; they can enforce strict legislation, as well as offer support through various subsidy policies.…”

Section: Introductionmentioning

confidence: 99%

“…Equation (1),(2); (4),(5);(7),(8), respectively, one can obtain the profit functions of CLSC members in the absence of a subsidy. The corresponding optimal decisions under the MS and RS games are presented in Lemma 7,8, respectively.…”

mentioning

confidence: 99%

Game-Theoretic Analysis to Examine How Government Subsidy Policies Affect a Closed-Loop Supply Chain Decision

Nielsen

Majumder²,

Saha

2019

Applied Sciences

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The pros and cons of government subsidy policies in a closed-loop supply chain (CLSC) setting on optimal pricing, investment decisions in improving product quality, and used product collection under social welfare (SW) optimization goal have not been examined comprehensively. This study compares the outcomes of three government policies under manufacturer-Stackelberg (MS) and retailer-Stackelberg (RS), namely (i) direct subsidy to the consumer, (ii) subsidy to the manufacturer to stimulate used product collection, and (iii) subsidy to the manufacturer to improve product quality. Results demonstrate that the greening level, used product collection, and SW are always higher under the RS game, but the rate of a subsidy granted by the government is always higher under the MS game. Profits for the CLSC members and SW are always higher if the government provides a subsidy directly to the consumer, but productivity of investment in the perspective of the manufacturer or government are less. In a second policy, the government organizations grant a subsidy to the manufacturer to stimulate used product collection, but it does not necessarily yield the desired outcome compared to others. In a third policy, the manufacturer receives a subsidy on a research and development (R&D) investment, but it yields a sub-optimal greening level. This study reveals that the outcomes of subsidy policies can bring benefit to consumers and add a degree of complication for CLSC members; government organizations need to inspect carefully among attributes, mainly product type, power of CLSC members, and investment efficiency for the manufacturer, before implementing any subsidy policies so that it can lead to an environmentally and economically viable outcome.

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Value creation from circular economy-led closed loop supply chains: a case study of fast-moving consumer goods

Cited by 147 publications

References 52 publications

Exploring barriers to implementing different circular business models

Exploring barriers to implementing different circular business models

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

Game-Theoretic Analysis to Examine How Government Subsidy Policies Affect a Closed-Loop Supply Chain Decision

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