Journal of Circular Economy

An applied scholarly journal on circular economy

Volume 2, Issue 1

February 2025

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Circular Supply Chain Management: Bridging Business Innovation and Sustainability Through Best Practices

Kapil Khanna, Swee Kuik, Joowon Ban

Abstract

The current linear economic system is unsustainable due to its dependence on the uncontrolled exploitation of diminishing natural resources. The integration of business innovation and supply chain management (SCM) has brought about the redesign of business processes through the implementation of a closed-loop approach. The Circular Economy (CE) offers a sustainable solution to improve business opportunities by ‘closing the loop’ and following the principles of rejuvenation and reuse inspired by nature. Presently, numerous studies have attempted to establish the concept of SCM by integrating CE principles, which are commonly denoted as circular SCM. With this study, we try and provide a more definite approach, as to what truly makes a SC circular. While many scholars have recognized the challenges of transitioning to CE, there is still a lack of consensus on business best practices that can facilitate companies in embracing CE across the supply chain. Hence, this paper conducts a thorough literature review to scrutinize the SCM practices utilized for CE and how they differ from other SCM models. It then identifies the obstacles and recommends best practices that can enhance a company's ability to incorporate CE principles toward business innovation and supply chain performance. Further, the paper proposes future research in the field of using technologies such as the Internet of Things (IoT) and blockchain, as business innovation tools for supply chain management towards CE adoption.

Keywords

Business Innovation · Challenges · Circular Economy · Circular Supply Chain · Supply Chain Management · Technology · Best Practices · Blockchain

How to cite this article?

Khanna, K., Kuik, S., Ban, J. (2025). Circular Supply Chain Management: Bridging Business Innovation and Sustainability Through Best Practices. Journal of Circular Economy, 3(1). https://doi.org/10.55845/VLHS2148

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