Integral Logistics Management — Operations Management and Supply Chain Management Within and Across Companies

1.1.8 Circular Economy and Integral Logistics Management

Intended learning outcomes: Present circular economy and integral logistics management.

Circular economy is, according to [ASCM22] an economic system intended to minimize waste and maximize the use of resources through a regenerative process.

In addition to forward-looking design, maintenance and repair, this includes reverse logistics, i.e. a supply chain for the reverse flow of the product, such as through returns, disassembly, and recycling. According to Fig., this can lead to a further life cycle — via redesign and remanufacturing to reuse — as another product, if need be.

Fig.        Circular economy and multi-connected supply chains.

In the case of capital goods, supply chains can also be interconnected on several levels. The user is then part of another supply chain. This in turn can produce an investment good, and so on. For example, a machine tool is used to manufacture products that are then used to manufacture other machines. Comprehensive circular economy also takes this effect into account. Sections 3.3.3 and 3.3.4 deal with further approaches to the circular economy.

Integral logistics management is the management of the comprehensive supply chain, that is, along the entire product life cycle, within and across companies.

The so-called circular supply chain management, i.e. the integration of circular economy and supply chain management, is thus part of the integral logistics management.

Course section 1.1: Subsections and their intended learning outcomes