Sustainable supply chain is the most discussed between companies, researchers and practitioners. Also, reducing the social impact and negative impact on supply chain has been challenging for many years. Circular supply chain models are being developed to optimize the life cycle of the products and it can only be achieved by redefining the supply chain practices. So we define that designing the supply chain across the six economy dimensions represented across the ReSOLVE model are regenerate, share, optimize, loop, virtualize and exchange. This proved improved supply chain visibility with an empirical evidence that how the circular supply chain is used in practice.
Recent trends in supply chain are compressed as IOT, Block chain, and advanced data analytics with forecasting and omni channel. Thus, the requirement from many stakeholders has put forward the usage of circular supply chain concept for many business is an urgent persona to be considered. Increase productivity, waste reduction and increase resource efficiency are the main metric success indicators for the circular supply chain.
As we all know supply chain management is the combination of three flows – material, information and capital flows. But, the modern supply chain also considers the other three dimensions like economic, social and environment factors into account to define the sustainable supply chain. While on the other hand circular economy evolved to eliminate waste and minimize resource consumption with focusing on economic development.
Circular supply chain plays a major role is sustainable supply chain in reducing the negative impact of the supply chain. The new way of thinking towards circular economy leads to reduction in waste and also bringing out new business opportunities and on the other hand protecting the environment. Increased use of resources which lead to efficiency use of operations and materials lead to the birth of circular supply chain.
Some of the projects implemented as a part of circular supply chain are:
- Implementation of IOT in the city waste collection management.
- In industries it is used to measure the fill level of waste and also which helps in optimizing the routes for scrap collection.
There was a ideation of usage of different technologies like, Big data, Autonomous robots, Internet of Things, Artificial Intelligence etc.. With four different supply chain approaches like lean supply chain, agile supply chain, Resilience supply chain and green supply chain. The major take in automobile industries was to implement the 6R’s in the production (recycle, reduce, reuse, rethink, refuse and repair) which follow the eco- design principles of the smart supply chain.
Waste to energy:
All the major countries are focusing on converting the waste produced by the country to energy. Usage of waste and biomass has increased in many countries. Mostly wood as a waste source is converted as an energy by the combustion process and also it can be used as a promising resource for biofuel production.
Pilot study has been carried out to understand the adoption of the closed loop supply chain by connecting technologies over the supply chain. The European Connected Factory Platform for Agile Manufacturing developed a custom solution to identify the adoption of waste management in supply chain. The major companies were the wood waste supply chain focusing on electricity production through this wood waste. The proposed solution which includes tie up between the wood waste producers and bio energy companies with an ecosystem built using block chain for automated negotiations at different stages of the supply chain. Also, it helps to identify improve the efficiency of waste management and also helps in identifying different business opportunities in the waste to energy market place.
- Since there is a lack of automated communication channel it was managed by using the traditional communication.
- Visibility in tracking of material has been decreased.
- Lack of marketplace ecosystem for waste collection
Factory (Producer Waste) -> Waste management companies ->Bio energy companies ->Energy supplies
- Online bidding platform where the request form the waste producers to suppliers having a automated match making for evaluation.
- In order to provide the tracking, trust and transparency block chain based application is developed for this closed loop supply chain
What is the bidding process followed?
- Requester: The requester agent to add information about the request goods/ service which includes the list of preference as (price, Payment terms, delivery time & methods) etc..
- Matchmaker: Finds all the suppliers agents that are capable of providing an offer for announced request. The supplier request becomes available for the requested agent.
- Suppliers: The matching agents are notified by the requester to provide their offers.
- Matchmaker: The request agent collects all the offers and sends them to the matchmaker for evaluation. The matchmaker returns the best available offer based on requester preferences.
- Requester: The requester receives the suggested offer by matchmaker. Then, its user is able to select the offer.
- Suppliers: They are notified if they are selected or not in order to get a contract for announced request.
The importance of block chain in the waste management.
- Waste producer: The waste producer through the app receives a smart contract agreement by the bidding process or creates a new agreement with the transportation service for an asset and digitally signs it.
- Transporter: The transporter digitally signs the smart contract to accept it and adds information for the driver and the pickup truck.
- Driver: The driver though his app digitally signs the loading of the asset and starts the transportation.
- Recipient: The recipient through the app digitally signs the delivery of the waste to his/her premise and is now the owner of the waste. When the waste is processed and converted into energy the action is written on the block chain as well.
- Waste producer: The waste producer is capable to track all the steps through the app and that it has been recycled/converted to energy.
- Certification Authority: The certification authority is capable to verify the waste journey and conversion into energy in order to issue green energy certificate to the waste producer.
What will be the role of different players in the circular economy of the waste management supply chain?
- Waste management companies: participate in the bidding process and provide their offer.
- Bio energy companies: participate in the bidding process and provides their offers.
- Electricity providers: sells electricity back to manufactures /waste producers. Part of this electricity comes from the wastes that the manufacturer has produced.
- Manufacturer / waste producer: Initialize a bidding process for a waste management service and prioritize its business needs in order to enable the match making engine to pick the best available offer based on these needs.
- Waste Management Company: The Company with the winning bid picks the bid. All the information is logged in the block chain. After that the company initiates the second bidding process to sell the waste to bio energy companies.
- Bio energy companies: The Company with the winning bid will get the bid.
To know basics of supply chain : https://basicstodo.com/supply-chain-introduction/