Smart packaging’s role in enhancing logistics capabilities for a circular economy: a systematic literature review

Purpose This study systematically explores the pathways through which smart packaging (SP) enhances logistics capabilities (LCs) to simultaneously address two key challenges for the circular economy (CE) – physical value and information loss. While the link between SP and circularity is recognised, the specific pathways through which item-level data reconfigures LCs and leads to circular outcomes remain underexplored. This paper clarifies these connections, detailing how and why SP serves as a foundational enabler for the strategic transition from reactive recovery to proactive circular supply chains. Design/methodology/approach Following a theory-informed systematic literature review (SLR), 59 articles were analysed using axial coding and multi-layered framework synthesis. The research utilises packaging functionalities (PFs) and LCs as micro-level and macro-level units of analysis, respectively, while adopting the R-imperative framework as a strategic lens to map circular outcomes. Findings The study identifies four thematic pathways: (1) proactive logistics management and dynamic optimisation, (2) autonomous and scalable reverse flows, (3) systemic trust and quality of material streams, and (4) collaborative value co-creation. The findings demonstrate that SP-enhanced LCs address the challenges of achieving circularity by mitigating physical value loss through functional preservation and information loss through item-level visibility. Information-management capabilities are the foundational antecedents allowing supply-management, demand-management, and coordination capabilities to mitigate the information asymmetry inherent in closed-loop systems. Originality/value This research develops a novel multi-layered conceptual framework explaining the “how” and “why” behind SP-enabled higher-order circularity. It identifies the theoretical boundaries of logistics-led interventions, highlighting the limits of item-level intelligence in supporting design-led strategies like repair and refurbish.