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Article
Publication date: 7 June 2013

Natural resource scarcity and the closed‐loop supply chain: a resource‐advantage view

John E. Bell, Diane A. Mollenkopf and Hannah J. Stolze

This research aims to provide a theoretical framework for exploring how firms can respond to the growing threat of natural resource scarcity. Specifically, the role of…

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Abstract

Purpose

This research aims to provide a theoretical framework for exploring how firms can respond to the growing threat of natural resource scarcity. Specifically, the role of closed‐loop supply chain management is examined as a means for creating resource advantages that can lead to marketplace competitive advantages.

Design/methodology/approach

The research extends previous theoretical research, integrating natural resource scarcity and closed‐loop supply chain management for the first time. Resource‐advantage theory is employed as the theoretical lens for the research model and propositions.

Findings

The findings deepen understanding of the forces that create natural resource scarcity conditions in the supply chain, and highlight the need for higher order closed‐loop capabilities that have the ability to mitigate natural resource scarcity.

Research limitations/implications

The theoretical model and six research propositions suggest relationships between natural resource scarcity, closed‐loop capabilities, and firm level performance that need to be tested empirically. Future research opportunities and methodologies are suggested.

Practical implications

Growing natural resource scarcity is already having a major impact on many firms and industries; therefore, this research has significant managerial implications due to supply risks and potential disruptions caused by insufficient natural resources in current and future supply chains.

Originality/value

This paper seeks to increase discussion about natural resource scarcity and bring it into focus as a relevant supply chain topic related to closed‐loop supply chain capabilities and the internal firm level resources needed to ensure performance in a changing world.

Details

International Journal of Physical Distribution & Logistics Management, vol. 43 no. 5/6
Type: Research Article
DOI: https://doi.org/10.1108/IJPDLM-03-2012-0092
ISSN: 0960-0035

Keywords

  • Natural resource scarcity
  • Closed‐loop supply chain
  • Resource advantage
  • Supply chain management
  • Supply chain risk
  • Resource management
  • Natural resources

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Article
Publication date: 13 March 2009

Leveraging closed‐loop orientation and leadership for environmental sustainability

C. Clifford Defee, Terry Esper and Diane Mollenkopf

The paper's aim is to develop a closed‐loop supply chain orientation as a strategic alternative available to supply chain organizations seeking competitive advantage in a…

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Abstract

Purpose

The paper's aim is to develop a closed‐loop supply chain orientation as a strategic alternative available to supply chain organizations seeking competitive advantage in a setting that puts a premium on socially responsible decisions.

Design/methodology/approach

The literature describing the concepts of supply chain orientation and supply chain leadership is used to develop a framework for achieving a competitive advantage.

Findings

Creating a closed‐loop supply chain orientation may be facilitated when the supply chain leader demonstrates a transformational leadership style, and when socially important environmental issues are present.

Research limitations/implications

The paper presents a synthesis of previously unconnected concepts in a conceptual framework that sets a stage for future research in this area.

Practical implications

The paper highlights the strategic importance of developing a closed‐loop supply chain orientation in the presence of environmental factors, and a supply chain leadership style that may enhance the transformation to such an orientation.

Originality/value

The paper extends the strategic concept of supply chain orientation to include forward and reverse flows in a holistic, closed‐loop view of the supply chain.

Details

Supply Chain Management: An International Journal, vol. 14 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/13598540910941957
ISSN: 1359-8546

Keywords

  • Supply chain management
  • Environmental management
  • Corporate social responsibility

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Article
Publication date: 13 June 2016

Dynamic development and execution of closed-loop supply chains: a natural resource-based view

Joe Miemczyk, Mickey Howard and Thomas E. Johnsen

This paper aims to reflect on recent closed-loop supply chain (CLSC) practices using a natural resource-based view (NRBV) and dynamic capabilities (DC) perspective.

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Abstract

Purpose

This paper aims to reflect on recent closed-loop supply chain (CLSC) practices using a natural resource-based view (NRBV) and dynamic capabilities (DC) perspective.

Design/methodology/approach

Two empirical case studies of CLSC exemplars are used to discuss the theoretical relevance of these views.

Findings

The paper shows how strategic resources help companies in two sectors achieve successful CLSC designs. Strategic supply chain collaboration is an important success factor but also presents a number of challenges. The NRBV is used to explain the importance of new resources in technology, knowledge and relationships and stresses the role of DCs to constantly address changes in the business environment to renew these strategic resources.

Research limitations/implications

This research elaborates on NRBV theory related to CLSCs and reinforces the inclusion of DCs. It specifies the application of NRBV in the context of textiles and carpet manufacture and highlights the inherent conflicts in seeking value while moving towards sustainable development.

Practical implications

Investments in technical and operational resources are required to create CLSCs. Pure closed-loop applications are impractical, requiring relationships with multiple external partners to obtain supply and demand for recycled products.

Social implications

CLSCs may provide opportunities for social enterprises or third sector organizations collaborating with manufacturers.

Originality/value

This paper provides insights into the constituent resources needed for successful CLSCs. It also helps move CLSC research from a tactical logistics problem to a problem of strategic resources and relational capabilities: what we term “dynamic supply chain execution”. This paper develops a framework for transitioning towards CLSCs, underlining the importance of co-development and forging new relationships through commitment to supply chain redesign, co-evolution with customers and suppliers and control of supply chain activities.

Details

Supply Chain Management: An International Journal, vol. 21 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/SCM-12-2014-0405
ISSN: 1359-8546

Keywords

  • Dynamic capabilities
  • Resource based view
  • Sustainable supply chains
  • Closed loop supply chains

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Book part
Publication date: 11 September 2020

Use of Maximal Covering Location Problem to Design a Closed Loop Supply Chain Network Under Product Substitution

Murtadha Aldoukhi and Surendra M. Gupta

This chapter proposes a multiobjective model to design a Closed Loop Supply Chain (CLSC) network. The first objective is to minimize the total cost of the network, while…

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Abstract

This chapter proposes a multiobjective model to design a Closed Loop Supply Chain (CLSC) network. The first objective is to minimize the total cost of the network, while the second objective is to minimize the carbon emission resulting from production, transportation, and disposal processes using carbon cap and carbon tax regularity policies. In the third objective, we maximize the service level of retailers by using maximum covering location as a measure of service level. To model the proposed problem, a physical programming approach is developed. This work contributes to the literature in designing an optimum CLSC network considering the service level objective and product substitution.

Details

Applications of Management Science
Type: Book
DOI: https://doi.org/10.1108/S0276-897620200000020005
ISBN: 978-1-83867-001-6

Keywords

  • Network design
  • maximum covering location problem
  • physical programming
  • product substitution
  • downward policy
  • closed loop supply chain

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Article
Publication date: 4 June 2018

Developing closed loop supply chains for environmental sustainability: Insights from a UK clothing case study

Alison Ashby

Forward and reverse supply chains form a “closed loop” when managed in a coordinated way and this “cradle to cradle” responsibility has strong relevance to addressing…

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Abstract

Purpose

Forward and reverse supply chains form a “closed loop” when managed in a coordinated way and this “cradle to cradle” responsibility has strong relevance to addressing environmental sustainability in global supply chains. The extensive outsourcing of manufacturing has created highly fragmented supply chains, which is strongly evidenced within the UK clothing industry, and it presents major environmental challenges, particularly around waste and resource use. The purpose of this paper is to investigate how a closed loop supply chain (CLSC) can be successfully developed to address environmental sustainability.

Design/methodology/approach

The natural resource-based view (NRBV) acknowledges the importance of a firm’s tangible and intangible resources, as well as socially complex relationships, and provides three path-dependent strategies for achieving environmentally based competitive advantage. Via an in-depth case study of the UK-based clothing firm, the NRBV is employed as a framework for understanding the processes that a focal firm needs to engage in to develop a CLSC, and the contribution that is made by its resources and supplier relationships.

Findings

The findings illustrate the key importance of strategic resources and shared vision and principles between the focal firm and its suppliers, in order to progress from a more reactive pollution prevention strategy to a fully embedded CLSC response to environmental sustainability. The case study highlights the need to extend the current CLSC model to integrate the design function and end customer; the design function ensures that appropriate environmental practices can be implemented, and customers represent a key stakeholder as they enable the reverse flows required to maximise value and minimise waste.

Originality/value

The NRBV and its three path-dependent strategies are an established framework for understanding environmentally based competitive advantage, but has not previously been explicitly employed to investigate CLSCs. This research, therefore, provides valuable insight into the applicability of this model in the supply chain field, and the key role of tangible and intangible resources and socially complex supplier relationships in developing and achieving a CLSC.

Details

Journal of Manufacturing Technology Management, vol. 29 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/JMTM-12-2016-0175
ISSN: 1741-038X

Keywords

  • Sustainable production
  • Environmental sustainability
  • Environment
  • Closed loop supply chains
  • Green operations
  • Buyer-supplier relationships
  • Natural resource-based view of the firm (NRBV)
  • Supplier relationships

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Article
Publication date: 14 August 2017

Embedding risk in closed-loop supply chain network design: Case of a hospital furniture manufacturer

Surya Prakash, Gunjan Soni and Ajay Pal Singh Rathore

The purpose of this paper is to assist a manufacturing firm in designing the closed-loop supply chain network under risks that are affecting its supply quality and…

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Abstract

Purpose

The purpose of this paper is to assist a manufacturing firm in designing the closed-loop supply chain network under risks that are affecting its supply quality and logistics operations. The modeling approach adopted aims at the embedding supply chain risks in a closed-loop supply chain (CLSC) network design process and suggests optimal supply chain configuration and risk mitigation strategies.

Design/methodology/approach

The method proposes a closed-loop supply chain network and identifies the network parameter and variables required for closing the loop. Mixed-integer-linear-programming-based mathematical modeling approach is used to formulate the research problem. The solutions and test results are obtained from CPLEX solver.

Findings

The outcomes of the proposed model were demonstrated through a case study conducted in an Indian hospital furniture manufacturing firm. The modern supply chain is mapped to make it closed loop, and potential risks in its supply chain are identified. The supply chain network of the firm is redesigned through embedding risk in the modeling process. It was found that companies can be in great profit if they follow closed-loop practices and simultaneously keep a check on risks as well. The cost of making the supply chain risk averse was found to be insignificant.

Practical implications

Although the study was conducted in a practical case situation, the obtained results are not indiscriminate to the other circumstances. However, the approach followed and proposed methodology can be applied to many industries once a firm decides to redesign its supply chain for closing its loop or model under risks.

Originality/value

By using the identified CLSC parameters and applying the proposed network design methodology, a firm can design/redesign their supply chain network to counter the risk and accordingly come up with planned mitigation strategies to achieve a certain degree of robustness.

Details

Journal of Modelling in Management, vol. 12 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/JM2-02-2016-0017
ISSN: 1746-5664

Keywords

  • Supply chain risk
  • Mixed-integer linear programming
  • Closed-Loop supply chain
  • Hospital furniture
  • Supply chain modelling
  • Supply chain network design

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Article
Publication date: 5 June 2020

A systematic literature review of closed-loop supply chains

Syed Asif Raza

This study research contributes in fulfilling the gap by carrying out a systematic literature review (SLR) of contemporary research studies in closed-loop supply chain …

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Abstract

Purpose

This study research contributes in fulfilling the gap by carrying out a systematic literature review (SLR) of contemporary research studies in closed-loop supply chain (CLSC). To the best of the author’s knowledge, an SLR rooted in bibliometric analysis has not been carried focusing on advent developments in CLSC. SLR employs scientific methodologies to select papers from standard databases. The SLR using advanced bibliometric and network analysis enables unveiling the key features of the contemporary literature.

Design/methodology/approach

The author has analyzed over 333 documents published from 2008 and onward. Using the contemporary tools from bibliometric analysis tools, the author presented an exploratory analysis. A network analysis is utilized to visualize literature and create clusters for the cocited research studies, keywords and publication sources. A detailed multivariate analysis of most influential works published based top 100 articles via a cocitation matrix is done. The multivariate analysis used k-means clustering in which optimal number of clusters are estimated. The analysis is further extended by using a factor analysis, which enables determining the most influential clusters in the k-means clustering analysis.

Findings

The SLR using a bibliometric and network analysis enables unveiling the key features of the contemporary literature in CLSC. The author examined published research for influential authors, sources, region, among other key aspects. Network analysis enabled visualizing the clusters of cocited research studies, cowords and publication sources. Cluster analysis of cocited research studies is further explored using k-means clustering. Factor analysis extends findings by identifying most contributing grouping of research areas within CLSC research. Each clustering technique disclosed a unique grouping structure.

Originality/value

CLSC has received considerable attention, and its core areas start with focusing on reverse logistics concepts relating reuse, recycling, remanufacturing, among others. Contemporarily, the studies have enhanced reverse logistics core functionalities interfaced with the other interesting avenues related to CO2 emission reduction, greening and environmental protection, sustainability, product design and governmental policies. Earlier studies have presented a literature review of CLSC; however, these reviews are commonly conducted in the traditional manner where the authors select papers based on their area of expertise, interest and experience. As such these reviews fall short in utilizing the advanced tools from bibliometric analysis.

Details

Benchmarking: An International Journal, vol. 27 no. 6
Type: Research Article
DOI: https://doi.org/10.1108/BIJ-10-2019-0464
ISSN: 1463-5771

Keywords

  • Closed-loop supply chain (CLSC)
  • Reverse logistics (RL)
  • Systematic literature review (SLR)
  • Bibliometric analysis (BA)
  • Network analysis
  • Clustering
  • Factor analysis

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Article
Publication date: 5 February 2020

Green closed-loop supply chain network design considering cost control and CO2 emission

Lufei Huang, Liwen Murong and Wencheng Wang

Environmental issues have become an important concern in modern supply chain management. The structure of closed-loop supply chain (CLSC) networks, which considers both…

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Abstract

Purpose

Environmental issues have become an important concern in modern supply chain management. The structure of closed-loop supply chain (CLSC) networks, which considers both forward and reverse logistics, can greatly improve the utilization of materials and enhance the performance of the supply chain in coping with environmental impacts and cost control.

Design/methodology/approach

A biobjective mixed-integer programming model is developed to achieve the balance between environmental impact control and operational cost reduction. Various factors regarding the capacity level and the environmental level of facilities are incorporated in this study. The scenario-based method and the Epsilon method are employed to solve the stochastic programming model under uncertain demand.

Findings

The proposed stochastic mixed-integer programming (MIP) model is an effective way of formulating and solving the CLSC network design problem. The reliability and precision of the Epsilon method are verified based on the numerical experiments. Conversion efficiency calculation can achieve the trade-off between cost control and CO2 emissions. Managers should pay more attention to activities about facility operation. These nodes might be the main factors of costs and environmental impacts in the CLSC network. Both costs and CO2 emissions are influenced by return rate especially costs. Managers should be discreet in coping with cost control for CO2 emissions barely affected by return rate. It is advisable to convert the double target into a single target by the idea of “Efficiency of CO2 Emissions Control Reduction.” It can provide managers with a way to double-target conversion.

Originality/value

We proposed a biobjective optimization problem in the CLSC network considering environmental impact control and operational cost reduction. The scenario-based method and the Epsilon method are employed to solve the mixed-integer programming model under uncertain demand.

Details

Modern Supply Chain Research and Applications, vol. 2 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/MSCRA-02-2019-0005
ISSN: 2631-3871

Keywords

  • Closed-loop supply chain network
  • Mixed-integer programming
  • Uncertainty
  • Stochastic programming
  • Epsilon method
  • CO2 emissions

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Article
Publication date: 31 July 2007

Closed‐loop supply chain activities and derived benefits in manufacturing SMEs

Stéphane Talbot, Élisabeth Lefebvre and Louis‐André Lefebvre

Closing the loop at the end of products' useful life is earning increased attention from industry and academia. The recent or upcoming enactment of regulations regarding…

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Abstract

Purpose

Closing the loop at the end of products' useful life is earning increased attention from industry and academia. The recent or upcoming enactment of regulations regarding the management of end‐of‐life products is forcing manufacturers to consider strategies to increase the residual value of the products they make. Facilitating the residual value extraction process for end‐of‐life products is a challenging issue deserving investigation. This paper proposes to investigate this issue.

Design/methodology/approach

This paper analyzes empirical evidence from a sample of 205 environmentally responsive SMEs operating in the fabricated metal products and electric/electronic products industries. A coherent research model is developed which classifies the closed‐loop supply chain (CLSC) activities along two dimensions, the forward and reverse supply chains.

Findings

This first proposed taxonomy has been shown to be relevant for both sectors. The results also demonstrate that firms' abilities to implement CLSC environmental initiatives vary in their intensity and in their locus along the product value chain. Furthermore, benefits derived from these initiatives seem to vary according to the strategy favored by the firms.

Originality/value

This research is valuable for those firms interested in implementing CLSC strategies in a synergistic manner with their forward supply chain.

Details

Journal of Manufacturing Technology Management, vol. 18 no. 6
Type: Research Article
DOI: https://doi.org/10.1108/17410380710763831
ISSN: 1741-038X

Keywords

  • Supply chain management
  • Research
  • Small to medium‐sized enterprises
  • Product life cycle

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Article
Publication date: 11 September 2017

Pricing and service decision of dual-channel operations in an O2O closed-loop supply chain

Lingcheng Kong, Zhiyang Liu, Yafei Pan, Jiaping Xie and Guang Yang

The online direct selling mode has been widely accepted by enterprises in the O2O era. However, the dual-channel (online/offline, forward/backward) operations of the…

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Abstract

Purpose

The online direct selling mode has been widely accepted by enterprises in the O2O era. However, the dual-channel (online/offline, forward/backward) operations of the closed-loop supply chain (CLSC) changed the relationship between manufacturers and retailers, thus resulting in channel conflict. The purpose of this paper is to take a dual-channel operations of CLSC as the research target, where a manufacturer sells a single product through a direct e-channel as well as a conventional retail channel; the retailer are responsible for collecting used products in the reverse supply chain and the manufacturer are responsible for remanufacturing.

Design/methodology/approach

The authors build a benchmark model of dual-channel price and service competition and take the return rate, which is considered to be related to the service level of the retailer, as the function of the service level to extend the model in the reverse SC. The authors then analyze the optimal pricing and service decision under centralization and decentralization, respectively. Finally, with the revenue-sharing factor, wholesale price and recycling price transfer payment coefficient as contract parameters, the paper also designs a revenue-sharing contract led by the manufacturer and explores in what situation the contract could realize the Pareto optimization of all players.

Findings

In the baseline model, the results show that optimal price and service level correlate positively in centralization; however, the relation relies on consumers’ price sensitivity in decentralization. In the extension model, the relationship between price and service level also relies on the relative value of increased service cost and remanufacturing saved cost. When the return rate correlates with the service level, a recycling transfer payment can elevate the service level and thus raise the return rate. Through analyzing the parameters in revenue-sharing contract, a point can be reached where lowering the wholesale price and raising the transfer payment coefficient will promote retailers to share revenue.

Practical implications

Many enterprises establish the dual-channel distribution system both online and offline, which need to understand how to resolve their channel conflict. The conflict is especially strong in CLSC with remanufacturing. The result helps the node enterprises realize the coordination of the dual-channel CLSC.

Originality/value

It takes into account the fact that there are two complementary relationships, such as online selling and offline delivery; used product recycling and remanufacturing. The authors optimize the strategy of product pricing and service level in order to solve channel conflict and double marginalization in the closed-loop dual-channel distribution network.

Details

Industrial Management & Data Systems, vol. 117 no. 8
Type: Research Article
DOI: https://doi.org/10.1108/IMDS-12-2016-0544
ISSN: 0263-5577

Keywords

  • E-commerce
  • Closed-loop supply chain
  • Dual-channel
  • Pricing strategy
  • Revenue-sharing contract

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