Logistics on Loop: Innovative Supply "Chains" of the Circular Economy

Supply Chains are traditionally linear systems, in which raw materials go through a process of value creation to become a product that is sold to the consumer and finally reaches the end of the chain. After use, products usually transform to solid waste, to be burned or used as landfill on a large scale. Emerging calls for a Circular Economy (CE), in which products are designed to be constantly recycled and repaired - and in which waste of resources and emissions are minimized - could modify linear supply chains in the future. Many policy makers and industry leaders strive towards this goal. The anticipated sustainable resource usage of CE would drastically change logistics operations and services. This work takes a closer look at current tools and practices in logistics, focusing on their compatibility with this potential major change of economic activity. It will further analyze the implications, which a shift from linear supply chains to circular supply chains would have on logistics operations in general. The paper aims to improve awareness for the necessary adjustments in logistics and therefore enhance readiness of distribution systems. Related recommendations for stakeholder action and areas for further research are identified.