Document Type : Original Article
Authors
1 PhD in Industrial Management, Department of Management, Faculty of Economics, Management and Social Sciences, Shiraz University, Shiraz, Iran
2 Professor, Department of Management, Faculty of Economics, Management and Social Sciences, Shiraz University, Shiraz, Iran
3 Associate Professor, Department of Management, Faculty of Economics, Management and Social Sciences, Shiraz University, Shiraz, Iran.
4 Professor, Department of Management, Faculty of Economics, Management and Social Sciences, Shiraz University, Shiraz, Iran.
Abstract
Today, in order to implement the circular economy and Industry 4.0 in supply chain management, there are challenges that by identifying and analyzing these challenges, these concepts can be implemented in the organization and benefit from their benefits. The purpose of the current research is to investigate and determine the relationship between the challenges of implementing the circular economy and Industry 4.0 in supply chain management using qualitative content analysis and intuitive fuzzy cognitive mapping. In this regard, with qualitative content analysis, effective challenges in the implementation of circular economy and industry 4.0 in supply chain management were identified and classified in 4 cultural-educational, financial-legal, infrastructural-technological, organizational-strategic dimensions. have been Then with intuitive fuzzy cognitive map and FCMaper and Mental Modeler software for the challenges of "lack of tracking system and access to recycled materials", "lack of integration of internal and external value chain" and "lack of effective communication with logistics partners" and suppliers" who have been most effective, the scenario is designed backwards. In the next step, for the challenges of "lack of knowledge of Industry 4.0 and the circular economy and its consequences", "lack of proper training", and "lack of a suitable strategy for Industry 4.0 and the circular economy", which have the most impact, design forward scenarios has been The results of this research enable managers of organizations to identify these challenges and plan to overcome them before implementing the circular economy and Industry 4.0.
Keywords
[1] Okorie, O., Russell, J., Cherrington, R., Fisher, O., & Charnley, F. (2023). Digital transformation and the circular economy: Creating a competitive advantage from the transition towards Net Zero Manufacturing, Resources, Conservation & Recycling, 189, https://doi.org/10.1016/j.resconrec.2022.106756
[2] Schöggl, J.F., Rusch, M., Stumpf, L., & Baumgartner, R. (2023). Implementation of digital technologies for a circular economy and sustainability management in the manufacturing sector, Sustainable Production and Consumption, 35, 401-420, https://doi.org/10.1016/j.spc.2022.11.012
[3] Jayarathna, C.P., Agdas, D., & Dawes, L. (2022). Exploring sustainable logistics practices toward a circular economy: A value creation perspective, Business Strategy and The Environment, 32, 704-720, https://doi.org/10.1002/bse.3170
[4] Kirchherr, J., Reike, D., & Hekkert, M. (2017). Conceptualizing the circular economy: An analysis of 114 definitions, Resources, Conservation and Recycling, 127, 221–232, https://doi.org/10.1016/j.resconrec.2017.09.005
[5] Knäble, D., Puente, E., Pérez-Cornejo, C., & Baumgärtler, T. (2022). The impact of the circular economy on sustainable development: A European panel data approach, Sustainable Production and Consumption, 34, 233–243, https://doi.org/10.1016/j.spc.2022.09.016
[6] Kamble, S.S., & Gunasekaran, A. (2019). Analyzing the role of industry 4.0 technologies and circular economy practices in improving sustainable performance in Indian manufacturing organizations, Production Planning and Control, 1-30, https://doi.org/10.1080/09537287.2021.1980904
[7] Sharifian jazi, S., Mohammadi, A., Abbasi, A., & Alimohammadlou, M. (2024). Identifying and prioritizing the challenges of implementing circular supply chain management in the Premiumbond company, Modern Researches in Decision Making, 8 (3), (In Persian).
[8] Mazroui Nasrabadi, E., & Sadeqi Arani, Z. (2024). Strategic analysis of industry 4.0 acceptance factors in healthcare: scenario analysis approach, Modern Researches in Decision Making, 8 (3), (In Persian).
[9] Ryalat, M., ElMoaqet, H., & AlFaouri, M. (2023). Design of a Smart Factory Based on Cyber-Physical Systems and Internet of Things towards Industry 4.0, Application Science, 13, https://doi.org/10.3390/ app13042156
[10] Esmaeilian, B., Sarkis, J., Lewis, K., & Behdad, S. (2020). Blockchain for the future of sustainable supply chain management in Industry 4.0, Resources, Conservation & Recycling, 163, 1-15
[11] Centobelli, P., Cerchione, R., Del Vecchio, P., Oropallo, E., & Secundo, G. (2020). Blockchain technology for bridging trust, traceability and transparency in circular supply chain, Information & Management, 1-14, https://doi.org/10.1016/j.im.2021.103508
[12] Wang, B., Luo, W., Zhang, A., Tian, Z., & Li, Z. (2020). Blockchain-enabled circular supply chain management: A systemarchitecture for fast fashion, Computers in Industry, 123, https://doi.org/10.1016/j.compind.2020.103324
[13] Garrido-Hidalgo, C., Ramirez, F., Olivares, T., & Roda-Sanchez, L. (2020). The adoption of Internet of Things in a Circular Supply Chain framework for the recovery of WEEE: The case of Lithium-ion electric vehicle battery packs, Waste Management, 103, 32-44, https://doi.org/10.1016/j.wasman.2019.09.045
[14] Hernandes de Paula e Silva, M., Martins, T., Aparecido Lopes Silva, D., & Mergulhao, R. (2021). The 13 Advantages of using Industry 4.0 Technologies in a Circular Supply Chain: A Systematic Literature Review, Conference: 10h International Workshop Advances in Cleaner ProductionAt: Ferrara,
[15] Gebhardt, M., Kopyto, M., Birkel, H., & Hartmann, E. (2021). Industry 4.0 technologies as enablers of collaboration in circular supply chains: a systematic literature review, International Journal of Production Research, https://doi.org/10.1080/00207543.2021.1999521
[16] Mastos, T., Nizamis, A., Terzi, S., Gkortzis, D., Papadopoulos, A., Tsagkalidis, N., Ioannidis, D., Votis, K., & Tzovaras, D. (2021). Introducing an application of an industry 4.0 solution for circular supply chain management, Journal of Cleaner Production, 300, 1-13, doi: 10.1016/j.jclepro.2021.126886
[17] Jabbour, A., Jabbour, C., Filho, M., & Roubaud, D. (2018). Industry 4.0 and the circular economy: a proposed research agenda and original roadmap for sustainable operations, International Journal of Production Economics, Elsevier, 270, 273–286, https://doi.org/10.1007/s10479-018-2772-8
[18] Khompatraporn, C. (2021). Circular Supply Chain Management, An Introduction to Circular Economy, 419-435, https://doi.org/10.1007/978-981-15-8510-4_21
[19] Mehdipour, P., Safaei Ghadikolaee, A., Fallah Lajimi, H., & Aghajani, H. (2022). To assess digital supply chain in manufacturing industries (Case study: Bedding industry), Journal of Management in Iran, 26 (1), (In Persian).
[20] Mboli, J., Thakker, D., & Mishra, J. (2020). An Internet of Things-enabled decision support system for circular economy business model, WIELY, https://doi.org/10.1002/spe.2825
[21] Patel, M. N., Pujara, A. A., Kant, R., and Malviya, R. K. (2021). Assessment of circular economy enablers: Hybrid ISM and fuzzy MICMAC approach, Journal of Cleaner Production, 317: 128387, https://doi.org/10.1016/j.jclepro.2021.128387
[22] Bar, K., Herbert‑Hansen, Z.N.L., & Khalid, W. (2018). Considering Industry 4.0 aspects in the supply chain for an SME, Production Engineering, 12, 747–758, https://doi.org/10.1007/s11740-018-0851y
[23] Pham, T., Luo, T., Tseng, M., Tan, R., Tan, K., Ika, D., & Lin, C. (2019). Industry 4.0 to Accelerate the Circular Economy: A Case Study of Electric Scooter Sharing, Sustainability, 11 (23), 1-16, https://doi.org/103390/su11236661
[24] Shahabi Shahabi, V., Azar, A., Faezirazi, F., & Falah-Shams, M. (2021). Modeling the impact of the 4th industrial revolution on the supply chain of banking services using the system dynamics approach and fuzzy dimtel technique, International Business Management, 4(1), 67-89. (In Persian).
[25] Reddy, Y.S., Gangadasari, P.R., & Prakash, S. (2021). Exploring Industry 4.0 and Circular Economy, Technical Article, https://www.researchgate.net/publication/348252669
[26] Ranta, V., Aarikka-Stenroos, L., & Matti Väisänen, J. (2021). Digital Technologies Catalyzing Business Model Innovation for Circular Economy—Multiple Case Study, Resources, Conservation & Recycling, 164, 1-11, https://doi.org/10.1016/j.resconrec.2020.105155
[27] Kayikci, Y., Kazancoglu, Y., Gozacan-Chase, N., Lafci, G., & Batista, L. (2022). Assessing smart circular supply chain readiness and maturity level of small and medium-sized enterprises, Journal of Business Research, 149, 375-392, https://doi.org/10.1016/j.jbusres.2022.05.042
[28] Nimawat, D., & Das Gidwani, B. (2022). Challenges facing bymanufacturing industries towards implementation of industry 4.0: an empirical research, International Journal on Interactive Design and Manufacturing, 16, 1371-1383, https://doi.org/10.1007/s12008-022-00961-7
[29] Kumar, P., Singh, R.K., & Kumar, V. (2021). Managing supply chains for sustainable operations in the era of industry 4.0 and circular economy: Analysis of barriers, Resources, Conservation & Recycling, 164, 1-12, https://doi.org/10.1016/j.resconrec.2020.105215
[30] Ada, N., Kazancoglu, Y., Deniz Sezer, D., Ede-Senturk, C., Ozer, I., & Ram, M. (2021). Analyzing Barriers of Circular Food Supply Chains and Proposing Industry 4.0 Solutions, Journal of Sustainability, 13, 1-29, https://doi.org/10.3390/su13126812
[31] Binek., D. & Khawla, A. (2020). Small and Medium-Sized Enterprises Within the Circular Economy: Challenges and Opportunities, Hungarian Agricultural Engineering, 37, https://doi.org/10.17676/HAE.2020.37.5
[32] Khandelwal, C., & Kumar Barua, M. (2020). Prioritizing Circular Supply Chain Management Barriers Using Fuzzy AHP: Case of the Indian Plastic Industry, Global Business Review, 1-20, https://doi.org/10.1177/0972150920948818
[33] Ulewicz, R., Novy, F., & Sethanan, K. (2019). The Challenges of Industry 4.0 for Small and Medium Enterprises in Poland and Slovaki, Quality Production Improvement,1 (1), 147- 154, https://doi.org/10.2478/cqpi-2019-0020
[34] Abdul Moktadir, Md., Mithun Ali, S., Sarpong, S, & Aftab Ali Shaikh, Md. (2018). Assessing challenges for implementing Industry 4.0: Implications forprocess safety and environmental protection, Journal of Process Safety and Environmental Protection, 117, 730-741, https://doi.org/10.1016/j.psep.2018.04.020
[35] Luthra, S., and Mangla, S.K. (2018). Evaluating challenges to Industry 4.0 initiatives for supply chain sustainability in emerging economies, Process Safety and Environmental Protection, 117: 168-179, https://doi.org/10.1016/j.psep.2018.04.018
[36] Ghenţa, M., & Matei, A. (2018). SMEs and the Circular Economy: from Policy to Difficulties Encountered during Implementation, Amfiteatru Economic, 20(48), 294-309, https://doi.org/10.24818/EA/2018/48/294
[37] Andabaka, A., Beg, M., & Gelo, T. (2018). Challenges of Ciecular Economy in CROTIA, International Journal of Multi Disipinarity in Business and Science, 4(5), - 115, https://hrcak.srce.hr/205532
[38] Rizos, V., Behrens, A., Gaast, W., Hofman, E., Ioannou, A., Kafyeke, T., Flamos, A., Rinaldi, R., Papadelis, S., Hirschnitz-Garbers, M., & Topi, C. (2016). Implementation of Circular Economy Business Models by Small and Medium-Sized Enterprises (SMEs): Barriers and Enablers, Sustainability, 8, https://doi:10.3390/su8111212
[39] Purnomo, M. R. A., Anugerah, A. R., & Dewipramesti, B. T. (2020). Sustainable Supply Chain Management Framework in a Higher Education Laboratory Using Intuitionistic Fuzzy Cognitive Map, Journal of Industrial Engineering and Management, 13 (2), 417-429, https://doi.org/10.3926/jiem.3204
[40] Chen, L., Duan, D., Mishra, A.R. and Alrasheedi, M. (2021). Sustainable third-party reverse logistics provider selection to promote circular economy using new uncertain interval-valued intuitionistic fuzzy-projection model. Journal of Enterprise Information Management, 35(4–5): 955–987.
[41] Raj, A., Dwivedi, G., Sharma, A., Beatriz, A., Sousa, L. D, and Rajak, S. (2019). Barriers to the Adoption of Industry 4.0 Technologies in the Manufacturing Sector: An Inter-Country Comparative Perspective. International Journal of Production Economics, 224: 107546.
[42] Kumar, S., Suhaib, M., and Asjad, M. (2020). Analyzing the Barriers to Industry 4.0 through Best-Worst Method. International Journal of Performability Engineering, 16(1): 27, https://doi.org/10.23940/ijpe.20.01.p4.2736
[43] Wagire, A. A., Singh Rathore, A. P, & Jain, R. (2021). Identification and prioritisation of challenges to Industry 4.0 adoption in the Indian manufacturing industry, International Journal of Business Excellence, 24(2): 248-274, https://doi.org/10.1504/IJBEX.2021.115750
[44] Dwivedi, A., Chowdhury, P., Kumar Paul, S., & Agrawal, D. (2022). Sustaining circular economy practices in supply chains during a global disruption, The International Journal of Logistics Management, https://doi.org/10.1108/IJLM-04-2022-0154
[45] Geng, Y., & Doberstein, B. (2008). Developing the circular economy in China: Challenges and opportunities for achieving leapfrog development, International Journal of Sustainable Development & World Ecology, 15, 231–239, doi:10.3843/SusDev.15.3:6, https://doi.org/10.3843/SusDev.15.3:6
[46] Mohamed, M. (2018). Challenges and Benefits of Industry 4.0: An overview, International Journal of Supply and Operations Management, 5(3), 256-265, https://doi.org/10.22034/2018.3.7
[47] Agyemang, M., Kusi-Sarpong, S., Ahmed Khan, S., Mani, V., Rehman, S. T., & Kusi-Sarpong, H. (2019). Drivers and barriers to circular economy implementation: An explorative study in Pakistan’s automobile industry, Management Decision, https://doi.org/10.1108/MD-11-2018-1178
[48] Sevinç, A., Gür, S., & Eren, T. (2018). Analysis of the Difficulties of SMEs in Industry 4.0 Applications by Analytical Hierarchy Process and Analytical Network Process, Processes, 6, 264, 1-16, https://doi.org/10.3390/pr6120264
[49] Govindan, K., & Hasanagic, M. (2018). A Systematic Review on Drivers, Barriers, and Practices Towards Circular Economy: A Supply Chain Perspective, International Journal of Production Research, 55, 278-311, https://doi.org/10.1080/00207543.2017.1402141
[50] Kumar, R., Singh, R. K., and Dwivedi, Y. K. (2020). Application of industry 4.0 technologies in SMEs for ethical and sustainable operations: Analysis of challenges, Journal of Cleaner Production, 275: 124063, https://doi.org/10.1016/j.jclepro.2020.124063
[51] Singh, E., Mishra, R., Kumar, A., Shukla, S.K. (2022). Circular economy-based environmental management using biochar: Driving towards Sustainability, Process Safety and Environmental Protection, 163(3), https://doi.org/10.1016/j.psep.2022.05.056
[52] Bai, C., Zhu, Q. and Sarkis, J. (2022). Circular economy and circularity supplier selection: a fuzzy group decision approach. International Journal of Production Research, https://doi.org/10.1080/00207543.2022.2037779
[53] Schroder, C. (2017). The Challenges of Industry 4.0 for Small and Medium-sized Enterprises, book, Publisher: Friedrich-Ebert-Stiftung
[54] Ritzén, S., & Ölundh Sandström, G. (2017). Barriers to the Circular Economy – integration of perspectives and domains, The 9th CIRP IPSS Conference: Circular Perspectives on Product/Service-Systems, 7-12. https://doi:10.1016/j.procir.2017.03.005
[55] Kiel, D., Muller, J.M., Arnold, C., & Voigt, K. (2017). Sustainable Industrial Value Creation: Benefits and Challenges of Industry 4.0, International Journal of Innovation Management, https://doi.org/10.1142/S1363919617400151
[56] Manda, M.I., & Ben Dhauo. (2019). Responding to the challenges and opportunities in the 4th Industrial revolution in developing countries, ICEGOV2019 Proceedings of the 12th International Conference on Theory and Practice of Electronic Governance, Melbourn, 244-253, https://doi.org/10.1145/3326365.3326398
[57] Haleem, A., Khan, S., Pundir, H., Jain, A., Upadhyay, P., Khan, M. I. (2021). Investigating barriers toward the implementation of circular economy: A fuzzy critic approach, Journal of Industrial Integration and Management, 6(1), 107–139, https://doi.org/10.1142/S2424862220500177
[58] Bag, S., Gupta, S., & Foropon, C. (2018). Examining the role of dynamic remanufacturing capability on supply chain resilience in circular economy, Journal of Management Decision, 57(4), 863-885, https://doi.org/10.1108/MD-07-2018-0724
[59] Mangla, S.K., Luthra, S., Mishra, N., Singh, A., Rana, N. P., Dora, M., & Dwivedi, Y.K. (2018). Barriers to effective circular supply chain management in a developing country context, Production Planning and Control, 29 (6), 551-569, https://doi.org/10.1080/09537287.2018.1449265
[60] Saroha, M., Garg, D., & Luthra, S. (2018). Key Issues and Challenges in Circular Supply Chain Management Implementation- A SystematicReview, International Journal of Applied Engineering Research, 13 (9), 91-104, http://www.ripublication.com
[61] Bressanelli, G., Perona, M., & Saccani, N. (2019). Challenges in supply chain redesign for the circular economy: a literature review and a multiple case study, International Journal of Production Research, 57 (23), 1–28, https://doi.org/10.1080/00207543.2018.1542176
[62] Farooque, M., Zhang, A., Thurer, M., Qu, T., & Huisingh, D. (2019). Circular supply chain management: A Definition and Structured Literature Review, Journal of Cleaner Production, 228, 882-900, https://doi.org/10.1016/j.jclepro.2019.04.303
[63] Kazancoglu, I., Kazancoglu, Y., Kahraman, A., Yarimoglu, E., & Soni, G. (2020). Investigating barriers to circular supply chain in the textile industry from Stakeholders’ perspective, International Journal of Logistics Research and Applications, 25 (4-5), 521-548, https://doi.org/10.1080/13675567.2020.1846694
[64] Ozkan-Ozen, Y.D., Kazancoglu, Y., & Kumar Mangla, S. (2020). Synchronized Barriers for Circular Supply Chains in Industry 3.5/ Industry 4.0 Transittion for Sustainable Resource Management, Resources, Conservation & Recycling, 161, 1-11, https://doi.org/10.1016/j.resconrec.2020.104986
[65] Milki, M. S., & Islam, M. A. (2021). Barriers to Circular Supply Chain Adoption: A Perspective of Electric Battery Industries of Bangladesh, research square, https://doi.org/10.21203/rs.3.rs-800036/v1
[66] Lahan, S., & Kant, R. (2021). Evaluating the circular supply chain implementation barriers using Pythagorean fuzzy AHP-DEMATEL approach, Cleaner Logistics and Supply Chain, 2, https://doi.org/10.1016/j.clscn.2021.100014
[67] Raj, A., Dwivedi, G., Sharma, A., Beatriz, A., Sousa, L. D, and Rajak, S. (2019). Barriers to the Adoption of Industry 4.0 Technologies in the Manufacturing Sector: An Inter-Country Comparative Perspective, International Journal of Production Economics, 224: 107546, https://doi.org/10.1016/j.ijpe.2019.107546
[68] Chen, L., Duan, D., Mishra, A.R. & Alrasheedi, M. (2022). Sustainable third-party reverse logistics provider selection to promote circular economy using new uncertain interval-valued intuitionistic fuzzy-projection model, Journal of Enterprise Information Management, 35(4–5): 955–987, https://doi.org/10.1108/JEIM-02-2021-0066
[69] Majumdar, A., Garg, H., and Jain, R. (2021). Computers in Industry managing the barriers of Industry 4.0 adoption and implementation in textile and clothing industry: Interpretive structural model and triple helix framework, Computers in Industry, 125: 103372, https://doi.org/10.1016/j.compind.2020.103372
[70] Kumar, V., Vrat, P., and Shankar, R. (2021). Prioritization of strategies to overcome the barriers in Industry 4.0: a hybrid MCDM approach, OPSEARCH, 58: 711-750, https://doi.org/10.1007/s12597-020-00505-1
[71] Khan, A., & Turowski, K. (2016). A Perspective on Industry 4.0: From Challenges to Opportunities in Production Systems, In Proceedings of the International Conference on Internet of Things and Big Data (IoTBD 2016), 441-448, https://doi.org/10.5220/0005929704410448
[72] Kumar, V., Sezersan, I., Garza-Reyes, J., Gonzalez, E., & ALShboul, M. (2019). Circular economy in the manufacturing sector: benefits, opportunities and
)