customer. The supply chain is open because the product leaves the initial supply
chain once it reaches the customer. At the end of the product’s use-phase, it is then
collected and either re-used, remanufactured, recycled, or disposed of via a different
supply chain to the supply chain which delivered the product in the first place. If the
supply chain also includes the collection of the used products, then it is referred to as
a closed-loop supply chain.
From a logistics perspective, CE can be seen as the integrated management of
forward and reverse flows of products in a supply chain. In the quantitative operations and supply chain management literature, a large body of knowledge on how to
operationalize closed-loop supply chains (CLSCs) already exists. CE literature,
mostly from Industrial Ecology-based journals, prescribes sets of principles predominantly focused on the design and material composition of products. Less
emphasis is placed on supply chain network design. Bocken et al. (2016) do however
describe three design principles that could underpin the circular products supply
chain network design, namely, (1) slowing, (2) narrowing, and (3) closing (material)
loops. Figures 1.3 and 1.4 illustrate the three principles. Figure 1.3 is of the
traditional linear economy product, which is manufactured, delivered to the consumer and disposed of when the product reaches its end-of-life. The product is also
replaced multiple times. From a logistics perspective, this product supply chain can
be referred to as open loop. Figure 1.4, depicts a circular product supply chain or in
logistics terms, a closed loop supply chain. The circular product lasts longer and
therefore does not need to be replaced. The transport of the product has a smaller
impact on the environment because it is constructed out of lighter (as well as more
environmentally friendly) materials. Finally, the circular product is returned to the
manufacture at its end-of-life, for refurbishing, remanufacturing, or recycling.
Fig. 1.3 Linear economy product life cycle from manufacture, through use to disposal
Fig. 1.4 Circular network design principles to reduce resource use (adapted from Bocken et al.
2016). Circular products last longer and therefore need to be replaced less often. Circular products
are made from materials, which have less of a burden on the environment. Finally, circular products
are returned to the manufacturer as opposed to being disposed of
6
A. Beames et al.
chain once it reaches the customer. At the end of the product’s use-phase, it is then
collected and either re-used, remanufactured, recycled, or disposed of via a different
supply chain to the supply chain which delivered the product in the first place. If the
supply chain also includes the collection of the used products, then it is referred to as
a closed-loop supply chain.
From a logistics perspective, CE can be seen as the integrated management of
forward and reverse flows of products in a supply chain. In the quantitative operations and supply chain management literature, a large body of knowledge on how to
operationalize closed-loop supply chains (CLSCs) already exists. CE literature,
mostly from Industrial Ecology-based journals, prescribes sets of principles predominantly focused on the design and material composition of products. Less
emphasis is placed on supply chain network design. Bocken et al. (2016) do however
describe three design principles that could underpin the circular products supply
chain network design, namely, (1) slowing, (2) narrowing, and (3) closing (material)
loops. Figures 1.3 and 1.4 illustrate the three principles. Figure 1.3 is of the
traditional linear economy product, which is manufactured, delivered to the consumer and disposed of when the product reaches its end-of-life. The product is also
replaced multiple times. From a logistics perspective, this product supply chain can
be referred to as open loop. Figure 1.4, depicts a circular product supply chain or in
logistics terms, a closed loop supply chain. The circular product lasts longer and
therefore does not need to be replaced. The transport of the product has a smaller
impact on the environment because it is constructed out of lighter (as well as more
environmentally friendly) materials. Finally, the circular product is returned to the
manufacture at its end-of-life, for refurbishing, remanufacturing, or recycling.
Fig. 1.3 Linear economy product life cycle from manufacture, through use to disposal
Fig. 1.4 Circular network design principles to reduce resource use (adapted from Bocken et al.
2016). Circular products last longer and therefore need to be replaced less often. Circular products
are made from materials, which have less of a burden on the environment. Finally, circular products
are returned to the manufacturer as opposed to being disposed of
6
A. Beames et al.