A Delphi study examining risk and uncertainty management in circular supply chains

Circular supply chains (CSCs) have attracted increasing attention in the supply chain management literature due to their role in increasing the circularity of materials, components, and products. However, surprisingly little attention has been paid to risk and uncertainty management in CSCs, with this aspect experiencing limited theoretical development thus far. Drawing on contingency theory, this paper aims to identify the risks and uncertainties that impede the implementation of CSCs and related management strategies and thus help prac-titioners mitigate them. A three-round Delphi study was conducted with a panel of industry, governmental, nongovernmental, and academic actors from 18 countries across five continents to analyze their views regarding risk and uncertainty management in CSCs. The results reveal critical risks and uncertainties at the organizational, supply chain, and external levels, including uncertain financial costs; a lack of knowledge and expertise; oper-ational and technological risks; uncertain quality, availability, and delivery of secondary resources; market competition with linear-oriented companies and supply chains; a lack of adequate regulatory frameworks and indicators; and unstable prices for virgin and secondary resources. In effect, appropriate countermeasures are necessary to manage risks and uncertainties, which are comprised of reducing and coping strategies. Reducing strategies consist of inter-firm collaboration and circular product design, and coping strategies consist of in-formation sharing, flexibility, and financial risk management. Moreover, the analysis revealed related contin-gency factors affecting CSCs, such as regulatory requirements. This paper develops a theoretical framework and a set of propositions regarding contingency factors and risk and uncertainty management in CSCs, helping theorists and practitioners to comprehend the challenges of circular economy implementation.

Automated summary

Circular supply chains have been recognized for their contribution to increasing materials' circularity, but little attention has been given to managing risks and uncertainties in these chains. This study uses contingency theory to identify the hurdles faced in implementing circular supply chains and proposes strategies to mitigate them. A Delphi study involving industry, governmental, non-governmental, and academic experts from 18 countries was conducted to analyze their views on risk and uncertainty management. The findings reveal risks and uncertainties at various levels and suggest countermeasures such as collaboration, circular product design, information sharing, flexibility, and financial risk management. The study also identifies contingency factors affecting circular supply chains, including regulatory requirements.