Towards circular manufacturing systems implementation: An integrated analysis framework for circular supply chains

Abstract

The transition to circular manufacturing systems (CMS) is crucial for achieving sustainable growth, addressing the environmental concerns and resource scarcity challenges. Shifting towards CMS requires a systemic approach that integrates value proposition models, product design, and supply chains (SCs). Circular supply chains (CSCs) emerge as a core pillar of CMS, incorporating value delivery, use, recovery, and reuse. CSCs are inherently more complex and dynamic than linear SCs requiring a holistic analysis approach to capture their complex and dynamic attributes. This research proposes an integrated analysis framework combining qualitative and quantitative approaches to explore the complexities and dynamics of CSCs and assess their economic, environmental, and technical performance. Through the lens of two different CMS implementation case studies, one in automotive parts remanufacturing and one in white goods manufacturing, this research illustrates the framework's applicability. In the automotive case, centralizing core management activities was found to improve economic performance by 50-54 %. However, the introduction of regional logistics hubs, while economically efficient, led to a 20 % increase in CO₂-equivalent emissions. On the other hand, the white goods case study highlighted the trade-offs in centralizing end-of-life recovery facilities, where financial savings of up to 60 % were offset by increased transportation costs and increased CO₂ emissions. The analysis of CSCs in these two distinct manufacturing sectors underscores the relevance and flexibility of the proposed framework, providing decision-makers with a tool to examine how different CSCs configurations and strategies impact overall performance. This guidance is crucial for developing optimal CSCs design and implementation strategies.