Short answer
When designing for circularity, consider how your company can influence or control the post-consumer phase of the product to maximize its lifespan and resource value.
- Field
- Resource Management
- Source
- Journal of Industrial Ecology (2020)
- Method
- Embedded Case Study
- Evidence
- Strong effect
Firms that vertically integrate their operations are better positioned to implement robust circular service operations like repair and remanufacturing, leading to more closed-loop systems and improved product design feedback. This resource management research insight is drawn from a 2020 study published in Journal of Industrial Ecology. Using Embedded case study, researchers explored how this design variable affects real-world outcomes. The key design takeaway: When designing for circularity, consider how your company can influence or control the post-consumer phase of the product to maximize its lifespan and resource value.
Vertical Integration Boosts Circularity in Product Lifecycles
Firms that vertically integrate their operations are better positioned to implement robust circular service operations like repair and remanufacturing, leading to more closed-loop systems and improved product design feedback.
Journal of Industrial Ecology · 2020
Key Findings
- 01Firms pursuing 'slowing' strategies (repair, reuse, remanufacturing) tend to have higher vertical integration than those pursuing 'closing' strategies (recycling).
- 02Higher vertical integration enables greater loop closure and facilitates better feedback into product design.
- 03A distinction was made between independent and autonomous third-party loop operators.
Application
Design takeaway
When designing for circularity, consider how your company can influence or control the post-consumer phase of the product to maximize its lifespan and resource value.
How to apply
Evaluate your product's potential for repair, reuse, and remanufacturing. Consider how your company's current or future supply chain structure supports these circular activities.
Project actions
- 01When researching a product, consider who controls its repair and end-of-life processes.
- 02Think about how a company could gain more control over these processes to make it more circular.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Provides a clear typology of circular value creation architectures.
- +Empirically grounded in a relevant industry case study.
Limitations
The specific industry studied (smartphones) might not perfectly represent all product types.
Reliability & validity
The embedded case study method provides rich, contextual data, but generalizability may be limited. The typology offers a framework for future quantitative research to assess reliability and validity across more cases.
Think critically
To what extent can a company achieve circularity without significant vertical integration, relying instead on strong partnerships and contractual agreements?
Design Principles
"Maximize product lifecycle value through strategic control of reverse logistics and service operations."
Understanding how to structure value chains is crucial for designing products with extended lifecycles. This research highlights that the degree of control over the supply chain directly impacts the effectiveness of circular strategies, influencing resource efficiency and waste reduction.
What This Means for Your Design
If a company wants to make its products last longer by fixing them or reusing parts, it's usually better if that company controls more of the steps involved, from making the product to taking it back and fixing it.
How to use in your project
- 1.Reference this study when discussing the business models or supply chain strategies that support circular design in your design project.
Add to My Project
Quick Cite
Paragraph starter
The research by Hansen and Revellio (2020) suggests that a company's level of vertical integration significantly impacts its ability to implement effective circular economy strategies. Specifically, higher control over the value chain, such as through direct management of repair and remanufacturing processes, enables more robust product lifecycle management and greater potential for resource recovery and design feedback, which is a key consideration for developing sustainable design solutions.
Source
Journal of Industrial Ecology
Circular value creation architectures: Make, ally, buy, or laissez‐faire
journal · 2020
View sourceQuestions About This Research
- What does the research say about vertical integration boosts circularity in product lifecycles?
- When designing for circularity, consider how your company can influence or control the post-consumer phase of the product to maximize its lifespan and resource value. Evidence: Journal of Industrial Ecology (2020).
- Why does "Vertical Integration Boosts Circularity in Product Lifecycles" matter for design?
- Understanding how to structure value chains is crucial for designing products with extended lifecycles. This research highlights that the degree of control over the supply chain directly impacts the effectiveness of circular strategies, influencing resource efficiency and waste reduction.
- How can designers apply this research?
- When designing for circularity, consider how your company can influence or control the post-consumer phase of the product to maximize its lifespan and resource value.
- What were the main findings?
- Firms pursuing 'slowing' strategies (repair, reuse, remanufacturing) tend to have higher vertical integration than those pursuing 'closing' strategies (recycling).. Higher vertical integration enables greater loop closure and facilitates better feedback into product design.. A distinction was made between independent and autonomous third-party loop operators.
- What research method was used?
- Embedded Case Study.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2020 journal from Journal of Industrial Ecology.
- What should I do differently in my next project?
- Evaluate your product's potential for repair, reuse, and remanufacturing. Consider how your company's current or future supply chain structure supports these circular activities.
- What are the limitations?
- The study focused on the smartphone industry, and findings may vary across different product categories and markets.