Industry 4.0: Managing the Circular Supply Chain

Industry 4.0: Managing the Circular Supply Chain

DOI: 10.4018/978-1-6684-7664-2.ch009
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Abstract

Companies have recently embraced sustainable supply chain management to lessen the adverse effects of their supply networks on the environment and society. The supply chain literature has developed a circular approach within this paradigm. Industry 4.0 technologies and circular economy have been established to convert end-of-life products into new ones with a variety of applications. The coordinated use of the CE and I4.0 concepts in may boost supply chain efficiency and competitiveness. The circular economy concept has been raised to the top of the corporate agenda due to demands from several stakeholders; as well as environmental and social issues; and corporations now recognizing the need to develop more sustainable operations. The adoption of smarter equipment and the digitalization of processes are essential success elements that increase output, resource efficiency, and waste reduction. The study recommends a thorough analysis of the literature that highlights the most important advancements while examining and organizing the data in the circular SC area made available by CE and I4.0.
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Introduction

Disruptive concepts like I4.0 and the CE have drawn a lot of attention recently. In order to boost efficiency, decrease or eliminate waste creation, optimise resource use, and promote more sustainable production and consumption practices, modern supply chains necessitate flexible supply techniques and procedures. These demands are met using ADA, forecasting techniques, IoT devices, and BCA. The circular economy concept has been elevated to the top of the corporate agenda due to demands from many stakeholders as well as environmental and social concerns, and businesses have understood that it is vital to create more sustainable processes. The adoption of procedures that use smarter equipment and the digitalization of processes are essential success elements that increase output, resource efficiency, and waste reduction (Tortorella and Fettermann, 2018).

Resource limitations, resource growth rates, environmental concerns, and mandates have begun to warn Supply Chain participants to evaluate their usage of resources and energy. It encourages the shift from a linear to a circular concept that is characterised by restore procedures, CSC is essential in this respect. To complete this CSC, linkages are formed upward and downward across the numerous supply chain practices and actions (Gonz'alez-S'anchez et al., 2020). Consequently, it is feasible to reduce waste through self-sufficient production processes. CE and industry 4.0 are the two biggest manufacturing trends in current years (I4.0). Their coordinated use in a professional environment increases SC productivity and attractiveness.

To accomplish their goals, Manavalan and Jayakrishna (2019) contend that industrial organisations must act rapidly to prioritise sustainability and use equipment like the “Internet of Things”. A model connecting the CE to I4.0 was provided by Rosa et al. (2020), whereas Kouhizadeh et al. (2019) examined the effect of a particular I4.0 technology (blockchain) on the transition to a CE. Supply chain traceability, reuse, and recycling are some of the essential practices for organisations aiming to enhance sustainability (Tiwari, 2015), according to a study by Gupta et al. (2021) on the CE, greener manufacturing, and I4.0 methodologies. Industry 4.0 technologies like blockchain technology enhance the performance of the CE by lowering operation costs, enhancing interaction throughout the supply chain, and lowering carbon footprint (Upadhyay et al., 2021).

Although past studies on I4.0 and the CE have made significant contributions, the body of knowledge is however small, necessitating more studies into how industry 4.0 (Tiwari, 2022) will affect sustainability (Morteza, 2020). It is emphasised that an empirical study is needed to determine how I4.0 solutions and the CE are used (Rosa et al., 2020). The necessity for verifying present models was noted by Carter et al. (2019). This study highlights a link between supply chain, circular economy, and Industry 4.0 that might not be found in the previous literature as well as several gaps and potential future research topics. By offering a new angle for future study, this work aims to advance existing knowledge on the interplay between supply chain, CE, and I4.0. Considering previous discussions, we recommend the two leading research questions (RQs) below:

  • RQ1. What is the present condition of SC, CE, and I4.0 learning and understanding?

  • RQ2: How can information about SC, CE, and I4.0 be systematised to systematically integrate the three areas and establish a theoretical framework?

There are five sections in this study. We begin by giving a comprehensive summary of the subject and listing a few crucial research problems. A study on the literature on I4.0, the CSC, and the CE is covered in the second section. The third segment established the theoretical framework integrating I4.0, the CE, and the CSC. The fourth section covers the discussion and the multiple enablers and challenges of the CSC. Finally, we provide the results and outlook of our investigation.

Key Terms in this Chapter

Circular Supply Chain Management: The idea of Circular Supply Chain Management (CSCM) was created by combining Sustainable Supply Chain Management with Circular Economy

Industry 4.0: Industry 4.0 covers a broad array of ideas on cutting-edge digital technology including Big Data Analytics, autonomous robotics, cyber-security, additive manufacturing, simulation, augmented reality, IoT, cloud, horizontal and vertical system integration among the nine tools.

Circular Economy: A Circular economy is one that is restorative and regenerative by design and aims to keep products, components, and materials at their highest utility and value at all times, distinguishing between technical and biological cycles

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