Closed loop supply chains and circular economy – the possibilities of interplay

Abstract

Background: The concepts of closed loop supply chain and circular economy are both based on the introduction of circular flow of material goods. Both concepts are becoming increasingly important not only due to the significance of reducing negative environmental impacts, but also due to supply chain disruptions caused by the COVID pandemic and the Russian invasion of Ukraine. The aim of this article is to determine the role of closed loop supply chains in circular economy and to determine the possibilities of interplay regarding practical application of these concepts. Methods: The research method used in this paper is the review of the existing literature. The reviewed literature is related to the areas of closed loop supply chains and circular economy. The study focuses not only on the possibilities of interplay between these two concepts, but also similarities, differences, and related operational concepts, such as slowing or intensifying loops of flows of material goods. Results: The results concern the possibilities of interplay between closed loop supply chains and circular economy and possibilities related with building the closed loop supply chains in circular economy. One of such possibilities is building circular networks consisting of closed loop supply chains. It might include collaboration related to reducing the use, reusing, and recycling of material resources. Conclusions: The main possibility of interplay between closed loop supply chains and circular economy is collaboration between actors of different supply chains aiming at building circular networks. The main research implication is providing a basis for further research related with building closed loop supply chains and circular networks in circular economy. © Wyższa Szkoła Logistyki, Poznań, Polska.