Implications of circularity for supply chain management a multi-tier supply chain perspective

Paper in proceeding, 2024

The purpose of this study is to explore how introduction of circularity in the multi-tier supply chain (SC), such as remanufacturing, repurposing, or reusing, impacts the supply chain management (SCM). We analyze several cases within a 3-Tier SC network of electronic components to an automotive OEM. The cases are circular flows introduced by the different actors along the multi-tier chain. A combination of interviews, site visits, and secondary data from the firms are used on each case. These data are inductively analyzed to explore the implications for SCM. We found circularity having been introduced in all the three tiers of the chain. The analysis reveals how these firms saw such circular initiatives beneficial to deal with supply shortages, or lowering development costs, and how they had to manage costs, data sharing, logistics flows, relationships and dependencies, when these circular flows were introduced in the multi-tier supply chain. The study implies a need for readjustment of SCM in the introduction of return flows and circularity. The results of the study will decrease the uncertainties in introduction of circularity in their SCs, and show the applicability of the concept. The paper is among the first to explore the applicability and implications of circularity with a multi-tier SC perspective.