circular product design and supply chain network design with reference to three key
logistics and supply chain strategic decision-making problems relevant for the
design and operation of circular businesses.
2 Logistics in the Circular Economy
A supply chain consists of all parties involved, directly or indirectly, in the flow and
transformation of goods and services from the origin of the product through to the
customer. Logistics involves the business activities required to match the consumer
demand for products from businesses with the supply of products. These activities
span throughout product supply chains, from raw material extraction through to final
product delivery. The collection and processing of used products and waste also falls
within the definition of logistics. Logistics does not only involve transport but also
relates to (1) strategically designing a supply chain in terms of the scale and location
decisions, (2) the matching of supply and demand with the resulting networks, and
ultimately (3) the detailed planning of the flow of products through the supply
chains. In other words, logistics deals with getting the right product at the right
place, at the right time, in the right amounts, and of the right quality.
The hierarchy of end-of-life processes (repair, re-use, refurbish, remanufacture,
recycle, waste-to-energy, and landfilling) can be understood from these perspectives.
Firstly, the potential for a product to be re-used, remanufactured, or recycled falls
within the domain of circular product design, and it is essential that circularity is
already considered in this early stage. Secondly, for products that have a significant
use-phase, there is emphasis on optimal use of the product during its life cycle and
possible extension of this life cycle. Maintenance or repair activities can reduce
overall material requirements. Thirdly, all materials in products, whether designed
for prolonged use, remanufacture, or recycling, will eventually be disposed of. The
re-use, remanufacture, and recycling of products simply acts as a buffer, delaying the
point in time when the materials will be unusable. The disposal of materials has
traditionally been the responsibility of local governments, who either disposed of
waste themselves or outsource waste collection and disposal activities to waste
management companies. The end-of-pipe solutions used for disposal include dumping, sanitary landfill, and incineration. Energy in the form of biogas can be harvested
from sanitary landfills. The preferred alternative to landfilling is incineration that
recuperates energy, also referred to as waste-to-energy. As society shifts towards
circularity, especially with longer-lasting products that can be re-used, the quantities
of waste managed by municipalities and waste management companies will
decrease. Finally, logistics determines how the materials required for the product
are brought together, how the product is brought to the consumer, and how used
products are either brought back to the manufacturer or disposed of. These perspectives on the circular economy are also represented by Achterberg et al. (2016) in the
Value Hill, which illustrates the transition from a linear economy to a circular
economy. The Value Hill includes life cycle extension in the use phase, the many
4
A. Beames et al.
logistics and supply chain strategic decision-making problems relevant for the
design and operation of circular businesses.
2 Logistics in the Circular Economy
A supply chain consists of all parties involved, directly or indirectly, in the flow and
transformation of goods and services from the origin of the product through to the
customer. Logistics involves the business activities required to match the consumer
demand for products from businesses with the supply of products. These activities
span throughout product supply chains, from raw material extraction through to final
product delivery. The collection and processing of used products and waste also falls
within the definition of logistics. Logistics does not only involve transport but also
relates to (1) strategically designing a supply chain in terms of the scale and location
decisions, (2) the matching of supply and demand with the resulting networks, and
ultimately (3) the detailed planning of the flow of products through the supply
chains. In other words, logistics deals with getting the right product at the right
place, at the right time, in the right amounts, and of the right quality.
The hierarchy of end-of-life processes (repair, re-use, refurbish, remanufacture,
recycle, waste-to-energy, and landfilling) can be understood from these perspectives.
Firstly, the potential for a product to be re-used, remanufactured, or recycled falls
within the domain of circular product design, and it is essential that circularity is
already considered in this early stage. Secondly, for products that have a significant
use-phase, there is emphasis on optimal use of the product during its life cycle and
possible extension of this life cycle. Maintenance or repair activities can reduce
overall material requirements. Thirdly, all materials in products, whether designed
for prolonged use, remanufacture, or recycling, will eventually be disposed of. The
re-use, remanufacture, and recycling of products simply acts as a buffer, delaying the
point in time when the materials will be unusable. The disposal of materials has
traditionally been the responsibility of local governments, who either disposed of
waste themselves or outsource waste collection and disposal activities to waste
management companies. The end-of-pipe solutions used for disposal include dumping, sanitary landfill, and incineration. Energy in the form of biogas can be harvested
from sanitary landfills. The preferred alternative to landfilling is incineration that
recuperates energy, also referred to as waste-to-energy. As society shifts towards
circularity, especially with longer-lasting products that can be re-used, the quantities
of waste managed by municipalities and waste management companies will
decrease. Finally, logistics determines how the materials required for the product
are brought together, how the product is brought to the consumer, and how used
products are either brought back to the manufacturer or disposed of. These perspectives on the circular economy are also represented by Achterberg et al. (2016) in the
Value Hill, which illustrates the transition from a linear economy to a circular
economy. The Value Hill includes life cycle extension in the use phase, the many
4
A. Beames et al.