Transition to the circular economy: the story of four case companies. Issue 11 (2nd June 2020)

• Record Type: Journal Article
• Authors: van Loon, Patricia; Van Wassenhove, Luk N.
• Is Part Of: International journal of production research. Volume 58:Issue 11(2020)
• Page Start: 3415
• Page End: 3422
• Publication Date: 2020-06-02
• Subjects: circular economy -- sustainability -- closed-loop supply chains -- transition paths; Factory management -- Periodicals; 658.57
• DOI: 10.1080/00207543.2020.1748907
• Languages: English
• ISSNs: 0020-7543

Abstract

Abstract : Shifting from a linear sales model to a circular service-based business model is far from straightforward. Many challenges accrue in the transition process, including finding the right market for the recirculated product/service, setting up the reverse supply chain, selecting the right partners, and making sure the new business model is sustainable in the short, medium and long term. This paper discusses the challenges of four companies trying to close the loop while preserving current profit levels. It describes their initial ideas on how the circular business model should be designed, the process they went through, challenges faced, and the eventual outcome. Based on the learnings of the four case companies, we summarise recommendations about preparatory steps required before making the transition towards a circular business model.