Scaling up a circular business model for remanufacturing: A case study of a sustainable value creation strategy for the white goods industry

Abstract

Because of the ever-increasing pressure on producers to adopt environmentally responsible industrial practices, remanufacturing has emerged as a key strategy to address the challenges of resource conservation and waste reduction. In this paper, we address a conspicuous research gap regarding innovative and large-scale circular solutions in the form of remanufacturing systems. We investigate how the private sector can build widespread remanufacturing networks to handle waste from the appliance industry. Starting from a successful case study of a leading Italian distributor of spare parts, our analysis expands their existing business model and inductively develops an original framework for regional remanufacturing. Our resulting model encompasses a centralised hub specialised in high-tech data management and supply-chain logistics, coupled with two tiers of remanufacturing labs and repairers, diffusing triple-bottom-line benefits throughout the local territory. We discuss the generalisability of such a centralised/decentralised model and propose avenues for the policy support of systemic circular innovations.