IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v32y2023i1p134-162.html
   My bibliography  Save this article

Outsourcing logistics operations in circular economy towards to sustainable development goals

Author

Listed:
  • Navid Zarbakhshnia
  • Kannan Govindan
  • Devika Kannan
  • Mark Goh

Abstract

One of novel manners to achieve sustainable development is concentrating on circular economy in order to manage greenhouse gas emissions, energy consumption, and waste. It also helps to protect the environment and optimize usage of input resources. The main element of circular economy is closed‐loop supply chain which covers both forward and reverse products flows. This study aims to outsource logistics operations in a closed‐loop supply chain. An innovative analytical multi‐step fuzzy decision‐making method is proposed to rank sustainable third‐party logistics service providers (3PLSPs). Fuzzy Decision‐Making Trial and Evaluation Laboratory (DEMATEL) is first used to evaluate the relationships among the main criteria. Then, fuzzy analytic network process (ANP) is applied to weight the determined set of criteria. In order to develop the hybrid fuzzy DEMATEL‐ANP method and to simplify the computation, the expert judgment method is used between the two techniques as a middle step to reduce the number of criteria. As many of the criteria overlap with each other on content and context, expert opinions are used to shortlist and rank the criteria. Finally, the 3PLSPs are ranked through the fuzzy complex proportional assessment (COPRAS) method. To validate the practicability and applicability of the improved decision‐making model, a household appliance case study is applied with data obtained from industry experts. In this case, five service providers are considered and ranked, while the first one gets the best score. A sensitivity analysis is performed by altering the criteria weights to validate the proposed approach, data, and the obtained results. In terms business and the environment, this study provides success critical criteria for decision‐making problems in circular economy for addressing sustainable development.

Suggested Citation

  • Navid Zarbakhshnia & Kannan Govindan & Devika Kannan & Mark Goh, 2023. "Outsourcing logistics operations in circular economy towards to sustainable development goals," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 134-162, January.
    • Handle: RePEc:bla:bstrat:v:32:y:2023:i:1:p:134-162
    DOI: 10.1002/bse.3122
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.3122
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.3122?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mohammad Fattahi & Kannan Govindan, 2017. "Integrated forward/reverse logistics network design under uncertainty with pricing for collection of used products," Annals of Operations Research, Springer, vol. 253(1), pages 193-225, June.
    2. Govindan, Kannan & Kadziński, Miłosz & Ehling, Ronja & Miebs, Grzegorz, 2019. "Selection of a sustainable third-party reverse logistics provider based on the robustness analysis of an outranking graph kernel conducted with ELECTRE I and SMAA," Omega, Elsevier, vol. 85(C), pages 1-15.
    3. Jonathan Sze Choong Low & Yen Ting Ng, 2018. "Improving the Economic Performance of Remanufacturing Systems through Flexible Design Strategies: A Case Study Based on Remanufacturing Laptop Computers for the Cambodian Market," Business Strategy and the Environment, Wiley Blackwell, vol. 27(4), pages 503-527, May.
    4. Reza Kiani Mavi & Navid Zarbakhshnia & Armin Khazraei, 2017. "A Fuzzy DEMATEL Analysis of Cultural Variables in Traffic Rules Violation," International Journal of Strategic Decision Sciences (IJSDS), IGI Global, vol. 8(4), pages 69-85, October.
    5. Kannan Govindan & Vernika Agarwal & Jyoti Dhingra Darbari & P. C. Jha, 2019. "An integrated decision making model for the selection of sustainable forward and reverse logistic providers," Annals of Operations Research, Springer, vol. 273(1), pages 607-650, February.
    6. Hong, Paul & Jagani, Sandeep & Kim, Jinhwan & Youn, Sun Hee, 2019. "Managing sustainability orientation: An empirical investigation of manufacturing firms," International Journal of Production Economics, Elsevier, vol. 211(C), pages 71-81.
    7. Tseng, Ming-Lang & Wu, Kuo-Jui & Hu, Jiayao & Wang, Chin-Hsin, 2018. "Decision-making model for sustainable supply chain finance under uncertainties," International Journal of Production Economics, Elsevier, vol. 205(C), pages 30-36.
    8. Yiqiang Zhang & Hussam Alshraideh & Ali Diabat, 2018. "A stochastic reverse logistics production routing model with environmental considerations," Annals of Operations Research, Springer, vol. 271(2), pages 1023-1044, December.
    9. Kiani Mavi, Reza & Zarbakhshnia, Navid & Khazraei, Armin, 2018. "Bus rapid transit (BRT): A simulation and multi criteria decision making (MCDM) approach," Transport Policy, Elsevier, vol. 72(C), pages 187-197.
    10. Riikka Tapaninaho & Anna Heikkinen, 2022. "Value creation in circular economy business for sustainability: A stakeholder relationship perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 31(6), pages 2728-2740, September.
    11. Regina Frei & Lisa Jack & Sally‐Ann Krzyzaniak, 2020. "Sustainable reverse supply chains and circular economy in multichannel retail returns," Business Strategy and the Environment, Wiley Blackwell, vol. 29(5), pages 1925-1940, July.
    12. Sara Perotti & Lorenzo Bruno Prataviera & Marco Melacini, 2022. "Assessing the environmental impact of logistics sites through CO2eq footprint computation," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1679-1694, May.
    13. Navid Zarbakhshnia & Devika Kannan & Reza Kiani Mavi & Hamed Soleimani, 2020. "A novel sustainable multi-objective optimization model for forward and reverse logistics system under demand uncertainty," Annals of Operations Research, Springer, vol. 295(2), pages 843-880, December.
    14. Ebru Turanoglu Bekar & Mehmet Cakmakci & Cengiz Kahraman, 2016. "Fuzzy COPRAS method for performance measurement in total productive maintenance: a comparative analysis," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 17(5), pages 663-684, September.
    15. Kannan Govindan, 2022. "Tunneling the barriers of blockchain technology in remanufacturing for achieving sustainable development goals: A circular manufacturing perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 31(8), pages 3769-3785, December.
    16. Steve Kennedy & Martina K. Linnenluecke, 2022. "Circular economy and resilience: A research agenda," Business Strategy and the Environment, Wiley Blackwell, vol. 31(6), pages 2754-2765, September.
    17. Maria Barreiro‐Gen & Rodrigo Lozano, 2020. "How circular is the circular economy? Analysing the implementation of circular economy in organisations," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3484-3494, December.
    18. Patrick Elf & Andrea Werner & Sandy Black, 2022. "Advancing the circular economy through dynamic capabilities and extended customer engagement: Insights from small sustainable fashion enterprises in the UK," Business Strategy and the Environment, Wiley Blackwell, vol. 31(6), pages 2682-2699, September.
    19. Christina W.Y. Wong & Chee Yew Wong & Sakun Boon‐itt, 2018. "How Does Sustainable Development of Supply Chains Make Firms Lean, Green and Profitable? A Resource Orchestration Perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 27(3), pages 375-388, March.
    20. Nagendra Kumar Sharma & Kannan Govindan & Kuei Kuei Lai & Wen Kuo Chen & Vimal Kumar, 2021. "The transition from linear economy to circular economy for sustainability among SMEs: A study on prospects, impediments, and prerequisites," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1803-1822, May.
    21. Biswal, Arun Kumar & Jenamani, Mamata & Kumar, Sri Krishna, 2018. "Warehouse efficiency improvement using RFID in a humanitarian supply chain: Implications for Indian food security system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 109(C), pages 205-224.
    22. Zhang Yu & Syed Abdul Rehman Khan & Muhammad Umar, 2022. "Circular economy practices and industry 4.0 technologies: A strategic move of automobile industry," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 796-809, March.
    23. Govindan, Kannan & Soleimani, Hamed & Kannan, Devika, 2015. "Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future," European Journal of Operational Research, Elsevier, vol. 240(3), pages 603-626.
    24. Jyoti Dhingra Darbari & Devika Kannan & Vernika Agarwal & P. C. Jha, 2019. "Fuzzy criteria programming approach for optimising the TBL performance of closed loop supply chain network design problem," Annals of Operations Research, Springer, vol. 273(1), pages 693-738, February.
    25. Chang, Da-Yong, 1996. "Applications of the extent analysis method on fuzzy AHP," European Journal of Operational Research, Elsevier, vol. 95(3), pages 649-655, December.
    26. Shih-Ming Ou, 2020. "Green Medical Reserve Logistics Provider Selection Using DEMATEL Method," Business, Management and Economics Research, Academic Research Publishing Group, vol. 6(1), pages 13-20, 01-2020.
    27. Cristina Ciliberto & Katarzyna Szopik‐Depczyńska & Małgorzata Tarczyńska‐Łuniewska & Alessandro Ruggieri & Giuseppe Ioppolo, 2021. "Enabling the Circular Economy transition: a sustainable lean manufacturing recipe for Industry 4.0," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3255-3272, November.
    28. Stekelorum, Rebecca & Laguir, Issam & Gupta, Shivam & Kumar, Sameer, 2021. "Green supply chain management practices and third-party logistics providers’ performances: A fuzzy-set approach," International Journal of Production Economics, Elsevier, vol. 235(C).
    29. Luca Marrucci & Tiberio Daddi & Fabio Iraldo, 2022. "Do dynamic capabilities matter? A study on environmental performance and the circular economy in European certified organisations," Business Strategy and the Environment, Wiley Blackwell, vol. 31(6), pages 2641-2657, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ivan Stevovic & Jovana Jovanovic & Sabahudin Hadrovic, 2023. "Sustainable Economy Of Non Renewable Resources And Conflict With Environment," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 119-126, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Navid Zarbakhshnia & Devika Kannan & Reza Kiani Mavi & Hamed Soleimani, 2020. "A novel sustainable multi-objective optimization model for forward and reverse logistics system under demand uncertainty," Annals of Operations Research, Springer, vol. 295(2), pages 843-880, December.
    2. Rajat Panwar & Eva Niesten, 2022. "Jump‐starting, diffusing, and sustaining the circular economy," Business Strategy and the Environment, Wiley Blackwell, vol. 31(6), pages 2637-2640, September.
    3. Chamari Pamoshika Jayarathna & Duzgun Agdas & Les Dawes, 2023. "Exploring sustainable logistics practices toward a circular economy: A value creation perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 704-720, January.
    4. Corinna Vera Hedwig Schmidt & Bastian Kindermann & Cassian Felix Behlau & Tessa Christina Flatten, 2021. "Understanding the effect of market orientation on circular economy practices: The mediating role of closed‐loop orientation in German SMEs," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 4171-4187, December.
    5. Jahani, Hamed & Abbasi, Babak & Sheu, Jiuh-Biing & Klibi, Walid, 2024. "Supply chain network design with financial considerations: A comprehensive review," European Journal of Operational Research, Elsevier, vol. 312(3), pages 799-839.
    6. Govindan, Kannan & Gholizadeh, Hadi, 2021. "Robust network design for sustainable-resilient reverse logistics network using big data: A case study of end-of-life vehicles," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    7. Salehi-Amiri, Amirhossein & Zahedi, Ali & Akbapour, Navid & Hajiaghaei-Keshteli, Mostafa, 2021. "Designing a sustainable closed-loop supply chain network for walnut industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 141(C).
    8. Patricia van Loon & Luk N. Van Wassenhove & Ales Mihelic, 2022. "Designing a circular business strategy: 7 years of evolution at a large washing machine manufacturer," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1030-1041, March.
    9. Farheen Naz & Rohit Agrawal & Anil Kumar & Angappa Gunasekaran & Abhijit Majumdar & Sunil Luthra, 2022. "Reviewing the applications of artificial intelligence in sustainable supply chains: Exploring research propositions for future directions," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2400-2423, July.
    10. Amin Vafadarnikjoo & Hadi Badri Ahmadi & Benjamin Thomas Hazen & James J. H. Liou, 2020. "Understanding Interdependencies among Social Sustainability Evaluation Criteria in an Emerging Economy," Sustainability, MDPI, vol. 12(5), pages 1-21, March.
    11. Muhammad Hamza Naseem & Jiaqi Yang & Ziquan Xiang, 2021. "Prioritizing the Solutions to Reverse Logistics Barriers for the E-Commerce Industry in Pakistan Based on a Fuzzy AHP-TOPSIS Approach," Sustainability, MDPI, vol. 13(22), pages 1-20, November.
    12. Chia‐Hao Ho & Steffen Böhm & David Monciardini, 2022. "The collaborative and contested interplay between business and civil society in circular economy transitions," Business Strategy and the Environment, Wiley Blackwell, vol. 31(6), pages 2714-2727, September.
    13. Hao Guo & Ying Zhang & Chunnan Zhang & Yu Liu & Yuan Zhou, 2020. "Location-inventory decisions for closed-loop supply chain management in the presence of the secondary market," Annals of Operations Research, Springer, vol. 291(1), pages 361-386, August.
    14. Luca Marrucci & Fabio Iannone & Tiberio Daddi & Fabio Iraldo, 2022. "Antecedents of absorptive capacity in the development of circular economy business models of small and medium enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 532-544, January.
    15. Fattahi, Mohammad & Govindan, Kannan, 2018. "A multi-stage stochastic program for the sustainable design of biofuel supply chain networks under biomass supply uncertainty and disruption risk: A real-life case study," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 534-567.
    16. Usama Awan & Robert Sroufe & Muhammad Shahbaz, 2021. "Industry 4.0 and the circular economy: A literature review and recommendations for future research," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 2038-2060, May.
    17. Yigit Kazancoglu & Esra Ekinci & Sachin Kumar Mangla & Muruvvet Deniz Sezer & Yasanur Kayikci, 2021. "Performance evaluation of reverse logistics in food supply chains in a circular economy using system dynamics," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 71-91, January.
    18. Nainsi Gupta & Gunjan Soni, 2021. "A Decision-Making Framework for Sustainable Supply Chain Finance in Post-COVID Era," International Journal of Global Business and Competitiveness, Springer, vol. 16(1), pages 29-38, December.
    19. Victoria Akberdina & Wadim Strielkowski & Natalia Linder & Sergey Kashirin & Lyudmila Shmeleva, 2023. "Information Technology and Digital Sufficiency for Building the Sustainable Circular Economy," Energies, MDPI, vol. 16(3), pages 1-14, January.
    20. Ya Cheng & Mohammad Masukujjaman & Farid Ahammad Sobhani & Muhammad Hamayun & Syed Shah Alam, 2023. "Green Logistics, Green Human Capital, and Circular Economy: The Mediating Role of Sustainable Production," Sustainability, MDPI, vol. 15(2), pages 1-22, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:32:y:2023:i:1:p:134-162. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.