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Prioritizing Performance Indicators for the Circular Economy Transition in Healthcare Supply Chains

Author

Listed:
  • Kartika Nur Alfina

    (Institut Teknologi Bandung (ITB)
    University of Stavanger)

  • R. M. Chandima Ratnayake

    (University of Stavanger)

  • Dermawan Wibisono

    (Institut Teknologi Bandung (ITB))

  • Mursyid Hasan Basri

    (Institut Teknologi Bandung (ITB))

  • Nur Budi Mulyono

    (Institut Teknologi Bandung (ITB))

Abstract

The emergence of the circular economy (CE) paradigm is a key driver in steering industrial sectors towards sustainability. The formulation of a robust circularity strategy depends on a comprehensive assessment, which is closely related to the overarching goal of managing the transition to circularity. The initial phase of transition within the healthcare sector reinforces the need to seamlessly integrate CE principles. It is therefore imperative to define and carefully monitor indicators that will help assess and improve sustainability, operational efficiency, supply chain resilience and stakeholder satisfaction, including both consumers and patients. The primary objective of this research is to prioritize relevant performance indicators that will be critical in measuring the effectiveness of the transition to a circular economy within the healthcare supply chain. To achieve this objective, the study employs the Analytic Hierarchy Process (AHP), a well-established methodology known for its effectiveness in solving complex multi-criteria challenges. The AHP is used to prioritize performance indicators that facilitate the management of the circular economy transition in the healthcare supply chain. The focus is on improving the quality of care, optimizing delivery efficiency, and emphasizing environmental sustainability within the healthcare paradigm. The methodological framework includes the identification of key main criteria covering environmental, social, economic, and logistical dimensions. These criteria are further refined with the inclusion of 14 sub-criteria, resulting in a list of 16 key performance indicators (KPIs). Additionally, the study proposes an alternative business model advocating for the implementation of the Circular Supply Chain Operation Reference Model (circular SCOR). This model offers a perspective for rapid change in supply chain processes towards circular transition within the healthcare system. The final stage of the research involves verifying the results through sensitivity analysis and correlation mapping of the indicator results with the Circular SCOR model. This process helps organizations refine their performance measurement protocols, enhancing their capacity for effective evaluation and strategic decision-making within the circular economy framework. This comprehensive approach enables healthcare organizations to proactively contribute to a more sustainable and environmentally conscious future while maintaining a focus on quality care for patient well-being.

Suggested Citation

  • Kartika Nur Alfina & R. M. Chandima Ratnayake & Dermawan Wibisono & Mursyid Hasan Basri & Nur Budi Mulyono, 2025. "Prioritizing Performance Indicators for the Circular Economy Transition in Healthcare Supply Chains," Circular Economy and Sustainability, Springer, vol. 5(1), pages 231-276, February.
    • Handle: RePEc:spr:circec:v:5:y:2025:i:1:d:10.1007_s43615-024-00436-9
    DOI: 10.1007/s43615-024-00436-9
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    References listed on IDEAS

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