Solution

2.0 PART 2: Contemporary Issues in Strategic Supply Chain

2.1 Introduction

Strategic Supply Chain Management for Circular Economy (CE) integrates sustainable practices into supply chain operations to minimize waste, optimize resource use, and extend product lifecycles as shown in figure 4 below.

Figure 4: Circular Economy

It focuses on loop approach, back flow logistics, and the integration of renewable or recyclable products. For that reason, organizations improve the effective use of transparency and efficiency by using digital technologies such as blockchain and AI while at the same time fulfilling environmental responsibilities and policies. This approach encompasses modern issues such as disruption effect, customer expectations on sustainability, and responsible sourcing, making it fit for purpose and competitive. CE integrated supply chain links organizational performance, pro-environment initiatives and resource engineering aiming at achieving cost reduction through efficient use of resources and circular economy thinking (Chopra et al,.2022).

2.2 Justification

Supply Chain Management (SCM) for CE is important for businesses to operate in today’s supply chain network in a strategic manner. With ever growing threats to global supply chain activities triggered by such factors as pandemics, political instabilities, and climate change, CE offers a framework. On adopting circular economy principles, various organizations are in a position to cut on the usage of raw materials hence they are capable of continuing operations even during scares possession or even during periods of increased prices globally (Fröhlich,2024) as shown in Figure 5 below.

Figure 5: Benefits of a Circular Economy

Another competent factor is environmental sustainability; that is the ability to meet the needs of the present without compromising on future generations’ ability to meet theirs. As customers become more aware of the environment and its conservation more and more companies face acute problems of getting rid of toxic substances. CE endorses this by encouraging use of recycled, recyclable or reconditioned supplies so as to enable firms to run with less harm on environment. This is in conformity with the consumer awareness and legal measures as it assist the firms to avert penalties and enable corporate social responsibility (Kumar et al.,2024).

The economic outcome of the implementation of CE is also noble as me listed below. In a circular way business can save on cost spent on disposing wastes and again on buying raw materials. Products that are built to last long, can be disassembled and recycled, cut the demand for more resources in production lines. Similarly, circular supply chain leads to new sources of supply chain revenue opportunities, including recycling or the development of services that make use of product-as-a- service (Vegter et al., 2020).

CE also proposes organisational changes as it challenges businesses to rethink product design and operations. Technologies such as blockchain and AI present organisations with options to enhance their supply chain management processes, increase visibility and enhance the supply chain’s efficiency on tracking and utilising resources. Such technological application assists in sustaining competitiveness for business enterprises while at the same embracing sustainability (Blum et al.,2020).

Therefore, this book titled Strategic Supply Chain Management for Circular Economy aids organisations in mitigating risks, decreasing costs, and improving their positive contribution with the society and the natural world. With more organizations integrating the circular economy model, organizations generate sustainable value to shareholders and the world.

2.3 Literature Review

In this paper, Fröhlich (2024) examines how circular supply chain management is set to take over the conventional linear supply chain management as a way of managing the economy. The paper outlines how closed loop strategies including product design for recovery and remanufacturing, can help minimize environmentally effects while at the same optimizing supply chain supply. But, it comes with some hurdles such as; stakeholder resistance and secondly; high initial costs of designing the supply chain. In the author’s opinion, a possible approach to applying novel materials, suitable for circular production, can be a more efficient industry cooperation and the use of LCAs as decision-making tools. According to Fröhlich, it is crucial to look at new technologies opportunity in cutting the cost of waste and material recovery in a manner that enables circular economy uptake by firms.

Kumar and Gupta (2024) identify the financial and operational concerns that firms encounter when adopting circular supply chains. They also consider the fixed costs associated with going circular, including the expensive in redesigning products for disassembly, hiring of new elaborate recycling technologies as factors that may discourage organizations from going circular. The authors indicate that organizations should start with pilot projects to try out circular models and then expand the test to include larger projects. They also argue that organisations can avoid financial risks and liabilities associated with circular business models by taking advantage of government policies encompassing incentives for investments into research and development activities…….

Please click the following icon to access this assessment in full