Abstract
Imagine a system where materials and products do not end up as waste but instead circulate back into the economy, creating new value, reducing reliance on virgin resources, and minimizing waste. This is the promise of a circular economy. However, transitioning to a circular economy is fraught with challenges. By “closing the loop” of materials and products, we can reduce dependence on resources, transforming what is often treated as waste in the linear economy into valuable inputs for future production. Yet, many organizations are still entrenched in linear thinking, lack knowledge in circular economy, and/or operate within frameworks not designed for circularity. So, how can businesses make this ambitious vision of circular transition a reality?
This dissertation dives deep into the implementation of a circular economy, focusing on the crucial role of circular supply chains. Unlike traditional closed-loop supply chains, which often rely on chance, this research proposes an intentional approach to designing circular supply chains. It challenges the notion that closing the loop is merely about managing returns and reverse logistics. Instead, it takes a holistic view that integrates forward and reverse resource flows through strategic planning and innovation. For businesses, neglecting this integration often leads to failures in ensuring quality, quantity, and timing of product returns, which are crucial for circular value propositions.
The dissertation uses a mixed-method research design, including case studies, modeling and simulations within the manufacturing industry to explore the operational challenges of implementing a circular economy. It introduces qualitative and quantitative frameworks for designing and implementing circular supply chains, focusing on circular value propositions, network design, location-allocation, and recovery strategies. The research also emphasizes the need for enhanced decision- making tools that consider the interdependencies among circular value propositions, product design, supply chain configuration, and enabling technologies.
This research provides theoretical and practical guidance for accelerating the transition to a circular economy. It is not just about “closing the loop”—it is about doing so “by design and intention” ensuring that our economy remains viable, sustainable, and resilient for generations to come.