Logistics Services in a Circular Economy: Finding the Fit Between Logistics Service Buyers and the Providers

ABSTRACT Logistics is essential for the circular economy, yet little is known about whether the services that logistics service providers offer align with the logistics service buyers need. Drawing on contingency theory, this study examines this fit at three levels: strategic (the circular strategy a service supports), functional (the logistics processes it performs) and capability (the resources and know‐how behind it). This study employs qualitative content analysis of corporate reports and websites of 45 large Swedish companies including 35 buyers across seven sectors and 10 providers of two types, traditional logistics service providers and waste management companies. The findings show that logistics services in the circular economy extend well beyond returns and reverse logistics. Across the sectors, the buyers need logistics services strategically to support prevention, life extension and material circularity and functionally for logistics optimization, reverse‐flow coordination, material processing, service logistics and platform coordination. And these logistics service needs are dependent on governance, specialized assets, circular know‐how, data‐handling and decarbonization. Logistics service providers address these needs in two ways. Traditional providers' services are more product centric, and waste management companies' services are more materials centric. No single provider type meets the needs of every sector, and the three‐level framework shows where fit and misfit arise. For buyers, it guides whether to rely on one provider, combine providers or keep functions in‐house. For providers, it shows where circular offerings are missing and where joint service bundles are needed.