Circularity in supply chains versus circular supply chains: identifying the need for transformation in manufacturing

Purpose This study aims to investigate how manufacturers can create circular supply chains based on existing circularity efforts arising from service-based arrangements. Design/methodology/approach Based on theoretical framing of supply chains as dynamic systems, the author presents an in-depth evidence from a single case study in the UK machine engineering sector. The data is based on rich insights from 11 interviews across multiple supply chain actors and secondary data. Findings The author identifies three key insights. Firstly, the service network in circular supply chains is characterised by long-term orientation with shared goals and visions, which differs from the transactional, ad hoc relationships evidenced in the case study. Secondly, the supply chain structure of a circular supply chain enables closed loops of materials and products as opposed to localised implementation of circular practices. Thirdly, circular supply chains require coordination of circular practices across the product value chain. This was missing in the presented case. Originality/value The author identifies two contributions. Firstly, this research contributes to the circular supply chain literature by identifying the key characteristics that differentiate circularity in supply chains from circular supply chains. Secondly, this research contributes to the emerging discourse on supply chains as dynamic systems by giving nuanced insights into the transformation from current supply chains to intended circular supply chains showcasing its determined and considered nature.