Connecting reverse logistics with circular economy in the context of Industry 4.0
ISSN: 0368-492X
Article publication date: 13 September 2022
Issue publication date: 28 November 2023
Abstract
Purpose
Reverse logistics (RL) has become integral in modern supply chains, with many companies investing in circular economy (CE), a recuperative and effective industrial economy. The traditional linear model triggered many negative environmental consequences such as climate change, ocean pollution, loss of biodiversity and land degradation. The development of RL strategies that support the transition between RL to CE is crucial. The purpose of this paper is to connect RL with CE in the context of Industry 4.0 and develop a hierarchal structure to explore the relationship between RL and CE critical success factors in the context of Industry 4.0.
Design/methodology/approach
This study used both qualitative and quantitative approach. Literature review in collaboration with the Delphi method is used to identify and validate critical success factors. Then, the ISM-based model and MICMAC method were used to determine the relationship between CE and RL success factors and its driving and dependence power.
Findings
This study result shows that waste reduction, skilled employees and expert's involvement and top management commitment and support will provide guidelines and paths for implementing CE and RL, leading to the competitiveness of a firm.
Practical implications
The findings provide managerial insight, particularly useful to third-party logistics companies' managers who are looking to implement RL and CE, to help prioritize where to invest company resources to generate prime difference. Furthermore, this study also identified Industry 4.0 technologies, which would tackle top identified critical success factors within the hierarchical model such as block chain and digital platforms.
Originality/value
This paper contributes to the literature by exploring the connection between RL and CE in the context of Industry 4.0 that determines the critical success factors enabling sustainable inter-firm collaboration.
Keywords
Acknowledgements
The authors are thankful to the anonymous reviewers for their constructive comments that help greatly in improving the quality of the paper. The authors are also thankful to all experts for generously sharing their time and information with us.
Disclosure statement: The author reported no potential conflict of interest.
Data availability statement: All data used in this study are readily available in the manuscript.
Citation
Khan, S.A., Laalaoui, W., Hokal, F., Tareq, M. and Ahmad, L. (2023), "Connecting reverse logistics with circular economy in the context of Industry 4.0", Kybernetes, Vol. 52 No. 12, pp. 6279-6320. https://doi.org/10.1108/K-03-2022-0468
Publisher
:Emerald Publishing Limited
Copyright © 2022, Emerald Publishing Limited