A Methodological Framework for Analysis and Theorization of Circular Supply Chain at the System Context Level

Abstract

Circular Economy concept (CE) revolves aims enhancing resource efficiency through product lifecycle in technical or biological cycles. The former aims to enhance resource efficiency through waste reduction, recycling, reuse, reducing material consumption, and so on. While in the latter, biodegradable materials are returned to earth through processes like composting. There is a lack of comprehensive theorization of CE concept, when focus is supply chain management/value regeneration at technical cycle. Such a lack and consequently a generic understanding can hinder realizing the full potential of CE. This research aims to propose a theorization of CE in the technical cycle through a supply chain management lens. To this end, the systems engineering approach and life cycle assessment (LCA) are integrated to analyse and theorize the circular supply chain/value regeneration. This paper proposed the novel perspective of supply chain as a system of systems (SoS), which allows identifying the enablers, players, and interactions that influence the realization of CE by implementing its known R-strategies. This paper suggested modification of the existing functional unit definition in LCA method such that the proposed definition takes into account the dynamic/evolving boundary of a supply chain when integrating the R-strategies. Moreover, this paper proposed the 'CE system context' for the supply chain SoS. The proposed structured approach allows the development of the Supply chain SoS within its CE context (Supply Chain SoS-CE context). Certain measures are introduced to assess the effectiveness of integrating R-strategies assuring they contribute to CE realization while network theory concepts are used to assess the criticality of various players in Supply Chain SoS-CE context. A roadmap for development of 'Supply Chain SoS-CE context' is introduced in the light of Industry 4.0.