From Sustainable Supply Chain Management to Circular Economy: A Systematic Review of Manufacturing Transitions
Abstract
Since the sustainability challenges such as resource depletion, environmental degradation, and increasing regulatory pressures have prompted manufacturing firms to pursue conventional supply chain practices. Sustainable supply chain management (SSCM) has been widely adopted to improve environmental efficiency and regulatory compliance, but its predominantly linear and incremental orientation limits its capacity to address long-term sustainability objectives. In response, the circular economy (CE) has emerged as a systemic approach that emphasizes resource circulation and regenerative production systems. This study synthesizes existing research to examine the conceptual transition from SSCM practices to CE practices and to assess their implications for sustainable performance in manufacturing. A systematic literature review was conducted to analyse peer-reviewed studies addressing CE implementation within manufacturing supply chains. The findings indicate that while SSCM practices provide an essential operational foundation for sustainability, CE practices extend these efforts by embedding circular principles across the product life cycle. In particular, management system integration, eco-design, and investment recovery are identified as critical mechanisms supporting the operationalization of CE. Moreover, the reviewed studies consistently associate CE adoption with sustainable improvements in economic profits, environmental protection, and social outcomes. Consequently, this study contributes to the sustainability and supply chain management literature by clarifying the theoretical relationship between SSCM and CE and by proposing an integrative perspective on their transition in manufacturing contexts. The findings offer valuable insights for scholars and practitioners seeking to advance more sustainable and regenerative manufacturing systems.
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