Supply chains in circular business models: processes and performance objectives

Circular business models formulate sustainable business strategies. To evaluate sustainable business strategies, it is necessary to be able to measure the actual performance of all processes of a supply chain in a circular business model. To measure the actual performance it is required to define what performance objectives are being pursued for all processes of a supply chain in a circular business model. There is a common understanding in literature that a supply chain in a circular business model differs from a supply chain in a linear business model. However, studies on what processes and what performance objectives conceptualize a supply chain in a circular business model are currently not available. A systematic literature review is conducted to conceptualize the processes and performance objectives of a supply chain in a circular business model. The study indicates that a supply chain in a circular business model consists of eight processes: (1) Plan (2) Source (3) Make (4) Deliver (5) Use (6) Return (7) Recover (8) Enable. Several processes need to be supplemented with subprocesses to enable planning of use and recovery, delivery of maintenance products and the return of end-of-use products. Furthermore, several processes need to shift their focus towards matching availability of resources (materials, water, energy) with the requirements of the supply chain, sourcing materials that minimize waste and enable returns and recovery after end-of-use, resource efficient production, sustainable packaging, waste disposal, buy-back and take back programs. The performance objectives can be classified into performance objectives for the circular economy, performance objectives that focus on the Triple Bottom Line and performance objectives that characterize a supply chain in a circular business model.