Circular economy implementation in operations &amp; supply chain management: Building a pathway to business transformation

doi:10.1080/09537287.2023.2280907

Study

Innovation & DesignRecentStrong effect

Circular Economy Implementation: A Three-Stage Pathway to Systemic Business Transformation

Successfully transitioning to a circular economy requires a structured, multi-stage approach that moves beyond incremental improvements to systemic innovation in product design, business models, and supply chain management.

Production Planning & Control · 2023

01

Key Findings

01Circular economy implementation involves a three-stage process: identification, initiation, and implementation.
02Successful CE requires systemic innovation, not just incremental changes, impacting product design, business models, reverse logistics, and enabling conditions.
03There is no single model for CE success; it's a continuous process of identifying value leakage/creation, piloting, evaluating outcomes, and managing risks.
04CE transformation is characterized by architectural change and systemic innovation.

02

Application

Design takeaway

Designers should proactively integrate circular economy principles into their design process, considering the entire product lifecycle and potential for systemic business model innovation.

How to apply

When initiating a new design project, map out the potential for product and material circularity, considering how the product will be returned, refurbished, or recycled, and how this integrates with potential new business models.

Project actions

01Consider the end-of-life of your designed product from the beginning.
02Research different business models that support circularity (e.g., product-as-a-service).
03Investigate how your design could facilitate repair or remanufacturing.

03

Method & Evidence

AimTo understand the challenges and pathways for implementing a circular economy within operations and supply chain management, leading to business transformation.

MethodLongitudinal study with qualitative data collection from interactive events and case studies.

ProcedureCollected rich data from over 1000 senior practitioners through interactive events to identify three stages of CE implementation (identification, initiation, implementation). Analyzed these stages and successful pathways through five industry case studies (Philips, Schweizer Bundesbahn, Renault, Ricoh, and Steelcase). Developed a framework for CE implementation grounded in everyday business practices.

SampleOver 1000 senior practitioners, 5 industry case studies.

ContextOperations and Supply Chain Management, Business Transformation, Circular Economy.

Variables

IV["Stage of CE implementation (Identification, Initiation, Implementation)","Focus on product design, business models, reverse flow management, enabling conditions"]

DV["Successful CE implementation","Business transformation","Value creation and capture"]

CV["Industry sector","Company size","Existing supply chain infrastructure"]

04

Strengths & Limitations

Strengths

+Longitudinal approach provides insight into the process of transformation.
+Rich data from a large number of practitioners and detailed case studies.

Limitations

It can be challenging to fully implement circular economy principles within the scope of a single design project. Focus on demonstrating the *design thinking* for circularity.

Reliability & validity

The study's validity is strengthened by its longitudinal approach and the use of multiple case studies. Reliability is supported by the large sample size of practitioners and the iterative testing of the framework.

Think critically

How can a designer balance the initial costs and complexities of designing for circularity against the long-term economic and environmental benefits?

05

Design Principles

"Design for Circularity: Integrate principles of longevity, repairability, reusability, and recyclability into product and system design from the initial concept phase."

This research highlights that adopting circular economy principles is not merely about waste reduction but a fundamental business transformation. Designers and engineers must consider the entire product lifecycle and its integration into new value creation models, impacting strategic decision-making and innovation efforts.

06

What This Means for Your Design

To make products and businesses more sustainable by reusing and recycling materials, companies need to plan carefully in stages, changing how they design things, how they sell them, and how they get them back.

How to use in your project

1.Use the three stages (identification, initiation, implementation) to structure your design process and justify your choices.
2.Refer to the case studies to illustrate how other companies have approached CE challenges.
3.Discuss how your design contributes to systemic innovation rather than just incremental improvement.

07

Add to My Project

08

Quick Cite

(2023). Circular economy implementation in operations & supply chain management: Building a pathway to business transformation. Production Planning & Control. https://doi.org/10.1080/09537287.2023.2280907 Retrieved from https://designdex.org/study/4ffcbf84-a1ff-4348-8f1f-bebb0f8a416c/circular-economy-implementation-a-three-stage-pathway-to-systemic-business-transformation

Paragraph starter

This research emphasizes that successful circular economy implementation is a complex, multi-stage process requiring systemic innovation. My design project addresses this by [explain how your design fits into one or more stages, e.g., designing for disassembly in the 'identification' phase, or proposing a service model in the 'initiation' phase], aiming to contribute to a more circular value creation pathway.

09

Source

Production Planning & Control

Circular economy implementation in operations & supply chain management: Building a pathway to business transformation

journal · 2023

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Questions about this research

What does the research say about circular economy implementation: a three-stage pathway to systemic business transformation?: Designers should proactively integrate circular economy principles into their design process, considering the entire product lifecycle and potential for systemic business model innovation. Evidence: Production Planning & Control (2023).
Why does "Circular Economy Implementation: A Three-Stage Pathway to Systemic Business Transformation" matter for design?: This research highlights that adopting circular economy principles is not merely about waste reduction but a fundamental business transformation. Designers and engineers must consider the entire product lifecycle and its integration into new value creation models, impacting strategic decision-making and innovation efforts.
How can designers apply this research?: Designers should proactively integrate circular economy principles into their design process, considering the entire product lifecycle and potential for systemic business model innovation.
What were the main findings?: Circular economy implementation involves a three-stage process: identification, initiation, and implementation.. Successful CE requires systemic innovation, not just incremental changes, impacting product design, business models, reverse logistics, and enabling conditions.. There is no single model for CE success; it's a continuous process of identifying value leakage/creation, piloting, evaluating outcomes, and managing risks.. CE transformation is characterized by architectural change and systemic innovation.
What research method was used?: Longitudinal study with qualitative data collection from interactive events and case studies. with Over 1000 senior practitioners, 5 industry case studies..
How strong is the evidence?: Evidence strength is rated Strong effect, based on a 2023 journal from Production Planning & Control.
What should I do differently in my next project?: When initiating a new design project, map out the potential for product and material circularity, considering how the product will be returned, refurbished, or recycled, and how this integrates with potential new business models.
What are the limitations?: The study focuses on senior practitioners' perspectives and may not capture all operational challenges. The identified pathways are illustrative and context-dependent.
Is there evidence that circular economy affects design outcomes?: Companies move through distinct stages to implement a circular economy, requiring holistic changes in how products are designed, business models operate, and supply chains manage returns, rather than just small adjustments. This research highlights that adopting circular economy principles is not merely about waste red Source: Production Planning & Control (2023).
Where does this business transformation research apply?: Operations and Supply Chain Management, Business Transformation, Circular Economy. It sits within innovation & design research on designdex.org.