Enablers and barriers in building the circular supply chain through remanufacturing - Grey DEMATEL approach

Abstract

Circular supply chains (CSCs) are one of the cornerstones of the circular economy (CE), as closing the material loop helps to recover value and improve resource-efficiency. The purpose of the study is to identify the main enablers and barriers in the transition from a linear supply chain to a circular supply chain through remanufacturing. We focus on electrical and electronic equipment (EEE), as, according to the European Commission guidelines, this sector has a high potential for circularity and is therefore one of the priority areas for a CSC implementation. Despite the high potential of remanufacturing to retain value in a supply chain, most CSC studies are centred on recycling. To fill this gap, we investigate the impact of six groups of factors related to legislation, collection system (take-back), technology, economics, products, and customers. As previous studies have shown interrelationships between factor categories, we employ a flexible multi-criteria grey DEMATEL (Decision Experimentation and Evaluation Laboratory) to effectively identify key enablers and barriers. The novelty of this exploratory research results from the focus on remanufacturing, which is under-represented in the context of CSC research, and the provision of actionable decision support to prioritise interrelated factors, with a particular focus on those that are enablers and barriers, through the application of a Grey DEMATEL. The results identify 12 enablers, among which the most influential are the introduction of ‘Right to Repair’, the application of a new service-based business model of EEE producers, and the increasing demand for secondary materials that provide an impulse to a more circular approach. The results reveal seven barriers, the most influential of which are the financial and organisational business requirements to initiate remanufacturing and the low availability of qualified staff. This research has practical implications, as it provides flexible and effective decision-making support for the transition from industry-dominant recycling to more circular value retention practices such as remanufacturing.