Toward a sustainable future: integrating circular economy in the digitally advanced supply chain

Abstract

Purpose

Stringent environmental regulations and the need for a robust supply chain (SC) network have necessitated organizations to adopt circular economy (CE) practices. With proven impact of CE practices on SC activities, digital technologies are prompting organizations to digitalize SC networks. Yet, the correlation between SC digitalization and CE practices has been less examined. This study aims to identify and evaluate, the critical success factors (CSFs) necessitating SC digitalization and strategies helping in SC digitalization.

Design/methodology/approach

An extensive literature review was performed to identify CSFs and strategies for SC 4.0 (SC4.0), and for finalization, experts’ input was obtained with the Delphi approach. An integrated Fermatean fuzzy set – analytic hierarchy process – decision-making trial and evaluation laboratory – combined compromise solution technique was used to evaluate CSFs and strategies.

Findings

Smart work environment, performance monitoring and data reliability and relevance were identified as the top three important CSFs for SC digitalization. Enhancement of analytical capability, data-driven process optimization and development of an integrated digital platform were identified as potential SC4.0 transition strategies.

Practical implications

This study helps SC practitioners better understand the CSFs and strategies for the SC4.0 transition. Furthermore, this study explores the integration of CE principles within these digital strategies, emphasizing how sustainability practices can be embedded in the SC4.0 framework to foster a more resilient and environmentally conscious electronics SC in India.

Originality/value

To the best of the authors’ knowledge, this work is the first to analyze CSFs for SC4.0 in the Indian electronics industry.

Citation

Karuppiah, K., Virmani, N. and Sindhwani, R. (2024), "Toward a sustainable future: integrating circular economy in the digitally advanced supply chain", Journal of Business & Industrial Marketing, Vol. 39 No. 12, pp. 2605-2619. https://doi.org/10.1108/JBIM-12-2023-0742