A Guiding Framework for Hyperconnected Circular Supply Chain Implementation

Abstract

This paper addresses the critical need to incorporate Circular Economy principles into supply chain management for decoupling economic growth and resource consumption. Circular supply chains, characterized by their restorative and regenerative nature, inherently introduce operational complexities. Concurrently, hyperconnectivity is evolving as a pervasive reality, defined by the extensive and intricate interconnectedness among actors across multiple layers. Specifically, we investigate the potential of the Physical Internet, a hyperconnected global logistics system, to facilitate the implementation of circular supply chains. Our approach includes a systematic literature review to map the current landscape and the development of a novel conceptual framework. This framework, merging the Physical Internet and circular supply chain concepts, identifies ten interrelated characteristics from various aspects such as product design, production, logistics, supply chain asset utilization, product usage, recovery, performance monitoring, material and energy exchange, as well as technology and business model innovation. Additionally, we introduce a four-stage maturity model to evaluate and improve companies' circular supply chain practices systematically. Its practical application is illustrated through two cases in automobile and sport garment industry respectively. This study is among the first to explore the integration of hyperconnectivity in logistics management into implementing circular supply chains. It lays a theoretical foundation and suggests actionable strategies.