Collaboration: An Enabler for Circular Supply Chains

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Presentation transcript:

Collaboration: An Enabler for Circular Supply Chains Jyoti Mishra*, Sankar Sivarajah, Chiat Yin Lim j.l.mishra1@bradford.ac.uk

Collaboration Talk about your idea of working with informal recyclers- main hurdle was getting a technology which would help these informal recyclers to shredd/smash bottles to save space. This is already been created in China (Yanyan stated this) so you could share technology and expertise.

Background Building Blocks of CE (EMF, 2013) Circular Design Business Model Design Forward and Reverse Supply Chain System Enablers Capabilities for identifying, anticipating and harnessing key enablers include new forms of partnerships and collaboration across the value chain, digital transformation, rethinking internal incentives, working with regulators and policy makers, having access to finance, building on existing systems and organisational characteristics

Background Importance of stakeholder engagement is more important if we move towards selling utilisation instead of ownership of goods (Stahel, 1982) Collaboration has become more of a necessity (Ghisellini et al., 2016)

Production (Grow Plants) Previous Research Closed Loop Supply Chain for easyGrowTM X PEAT Production (Grow Plants) Raw Materials Distribution Retail Customer Biosphere Coir/PLA Loop 4 Loop 3 Coconut RPET Loop 2 Recycle/ Collection X Polystyrene X Polystyrene Supplier RPET Landfill/ Waste to Energy Mishra, J.L., Hopkinson, P. & Tidridge, G. (2018). Value Creation from Circular Economy led Closed Loop Supply Chains: A Case Study of Fast Moving Consumer Goods. Production, Planning & Control, 29 (6).

Literature Gap Merli et al. (2018) Everybody talks about the weather, but nobody does anything about it. (Mark Twain)

Aims & Objectives To investigate collaboration issues across the value chain What are the drivers and barriers for collaboration? We are looking especially at established organisations deeply rooted in linear model, the cost and risk to switch to new model of CE might be high

Research Design Focal firm- one of the leading European ICT service provider Used mixed method- 25 questionnaire with 25 companies Followed by 25 semi-structured interviews with 12 companies including manufacturers, logistics providers, distributors 11 organisations interviewed were from the EU and one from China

Findings Misalignment of Strategic Vision: “We can have a big role in this because circularity is one of the main focus in our organization. So, for us, it is also very important to talk to our customers about reverse logistics of hardware and to process them in environmental friendly way” We have offered to repair and refurbish products. We can make a deal out of it but COMPANY X has decided not to do it at the moment. It's up to them to scale it up... Lack of engagement: We don't own product and we don't deliver products…I don’t think we have a lot of influence… When customers have questions about WEEE, we always pass them to our suppliers. So, refurbishing, repairing etc are also tasks for suppliers, not us

Lack of Knowledge & funding: Role of focal firm: We are willing and we also want to support the environment but we are bound by customer's wishes. If their business model is different, then we cannot do it. As I understand, Company X never asked us for this kind of repair or cleaning services for the remote controls, that's why there's nothing going on here with X. There is a possibility but we never really discussed about this opportunity. Low Value Goods: Low value goods such as sim-packs, TV remote controls and computer accessories, no return process applies from suppliers’ point of view. Lack of Knowledge & funding: For new products not much on LCA is available. As these documentation and reporting activities are not funded, we have very limited manpower budget for such potential reporting tasks.

Uncertainty for circular products: Design requirements not meeting best practice environmental (E) design requirements. Full circular economy business model might not be accepted i.e. TV-as-a-service, by Company X and supplier (O) Circular Design vs Design for Safety & Robustness: Easy disassembly is possible so long it will not undermine the robustness (durability) and safety of the product (Q). That's our main challenge.

Findings from survey Lack of Information: 40% highlighted that they do not keep track of market demand for reprocessed products 48% Service providers do not have information on product and material lifecycle. Information Sharing: 68% respondents readily share information whilst others highlighted that this would happen only under contractual agreement

Finally.. Strategic alliance Enhanced leadership and vision Joint decision making Frequent meeting for collaboration Trust and partnership (including contractual agreements) Sharing knowledge and best practices Funding & Incentives

Thank you! Contact: Jyoti Mishra j.l.mishra1@bradford.ac.uk