Conference Agenda

This study highlights the financial, operational and strategic implications of circular economy (CE) strategies in the Tanzanian pharmaceutical industry. The continued generation of hazardous waste emphasises the urgent need for sustainable paradigms. While the circular economy is gaining momentum in developing countries, its customised application in the pharmaceutical sector is an area that has yet to be scientifically explored.

Using a survey-based approach, data from selected pharmacies in Tanzania was analysed to highlight the different dimensions of circular economy adoption and the associated impacts. The results show that practitioners recognise the fiscal benefits of cost savings and income diversification as well as barriers such as significant capital investment and the need to maintain quality.

From a strategic perspective, the adoption of CE goes beyond its environmental role; it represents an excellent opportunity to enhance a company's brand equity and gain a competitive advantage through resource optimisation and innovative paradigms. We advocate a paradigm shift towards a circular economy ethos that transcends archetypal industry boundaries and favours synergies within the supply chain. The implications of our findings lead to a compelling directive: adopting the principles of the circular economy requires a fundamental realignment of cognitive schema and operations. It becomes clear that fostering a collaborative ethos within the supply chain ecosystem, moving away from previous compartmentalisation in favour of holistic, ecosystemic integration, is a sine qua non. This also underlines the need for a "circular mindset" that embraces the ethos of resource optimisation, waste minimisation and value maximisation. By improving resource accessibility, reducing environmental impact and expanding commercial opportunities, the circular economy is crystallising as a strategic imperative for business resilience and competitiveness.

Therefore, the creation of platforms for collaboration and the dissemination of information between actors to promote synergies and operational efficiency within the supply chain is essential. At the same time, investments must be made in infrastructure that is suitable for the circular economy. Infrastructural foundations such as logistics hubs and knowledge dissemination centres must be created to support the circular economy. Fostering innovations in product design, packaging, and transportation to augment resource efficiency and environmental sustainability is vital. Finally, the existing legal framework must be improved in order to incentivise the introduction of the circular economy and promote compliance with sustainability principles.

Purpose

Digital Twin (DT) concepts are widely discussed in the context of the Industry 4.0 paradigm, and recognized as a key opportunity to enhance the competitiveness of manufacturing enterprises. Yet, the concept of the Logistics Digital Twin (LDT) has received comparatively scarce attention. LDT applications offer improved visualization and comprehension of logistics operations, enabling advanced analysis, simulation, and optimization. Despite various scientific studies, there is still no unified understanding regarding the definition and practical implementation of DT concepts in the logistics sector. This paper addresses the use of DT applications in logistics operations, presenting a relevant use case, its intended purpose, and the current state of technological readiness. The authors explore common definitions, characteristics, and functionalities of DT applications, highlighting recent developments and their implications. Additionally, based on the research findings, the authors identify current research gaps, and present potential directions for future research in the field of logistics operations. The purpose of this paper is to explore mechanisms of supply chain inclusion in Base of the Pyramid (BOP) settings. It distinguishes micro-, small- and medium-sized enterprises (MSME)-led local supply chains on the one hand and multinational enterprises (MNEs)-led global supply chains on the other hand. This paper aims to answer the following research question: Which mechanisms of supply chain inclusion are employed empirically by MSMEs and how can these mechanisms influence social impact creation in MNE-led global supply chains?

Design/methodology/approach

A large-scale empirical study of MSMEs operating in BOP markets is performed and a cluster analysis conducted to systematically categorize supply chain inclusion. The cluster analysis and current literature yield theory-based implications for MNE-led global supply chains.

Findings

The cluster analysis reveals three meaningful clusters of supply chain inclusion in BOP markets and highlights two main aspects. They include direct vs indirect mechanisms of inclusion and diversity in supplier relationships with local organizations aimed at either “sourcing” local capabilities needed for inclusion or “outsourcing” the inclusion. Based on these aspects, two scenarios are proposed and evaluated for local-global supply chain symbiosis.

Research limitations/implications

This study aims to contribute to the existing literature with a more fine-grained understanding of the inclusion of BOP actors in local supply chains and by proposing alternative trajectories for global supply chain inclusion. This local-global distinction is a new addition to the logistics and supply chain strategy management discourse.

Practical implications

The findings outline several important decisions that logistics managers need to make to include BOP actors in supply chain activities. This enhances strategic capabilities of logistics service providers within supply chain settings across all industries.

Originality/value

This paper contributes a novel, combined perspective of local supply chains (MSMEs) and global supply chains (MNEs) towards the issue of strategic base of the pyramid management in logistics.

Although seen as a central enabler of the Circular Economy (CE), inter-organizational information sharing to facilitate repair, reuse and recycling remains insufficient (Jäger-Roschko and Petersen 2022; Plociennik et al. 2022). Driven by regulations of the European Union, digital product passports mirror a suitable opportunity to store, update and retrieve needed information digitally (Psarommatis and May 2024; Preut et al. 2021). As a product-specific dataset, they encompass information such as contained materials, usage data or repair manuals. This study explores the crucial role of information sharing in the context of the CE, shedding light on the digital product passport. We aim to illustrate what needs to be done to improve information sharing in this domain and how it can be enhanced by digital product passports.

A grounded theory approach was applied to gain comprehensive insights into what information is needed, whether companies are willing to share data, and how digital product passports might assist here. In this context, semi-structured interviews with key stakeholders of the CE from different sectors were conducted, including manufacturers, repairers, and recycling companies.

Our analysis reveals various needs for CE-relevant information due to challenges to extend product life. Fortunately, e.g., customer demands and regulatory requirements have made many companies that could potentially provide required information recognize the importance and urgency of sharing CE-relevant information. However, the study also demonstrates the uneven willingness to share information and put intentions into practice because of missing clarity about the detail level of information to be shared and accompanying concerns regarding data security and loss of competitive advantages. Also, efficient information exchange is often hindered by companies´ low level of digitization.

The interview results highlight that digital product passports have great potential to ease information sharing in the CE and that collaboration and exchanging information among stakeholders create leverage. Being vital to jointly generate value and overcome reluctance, a collaborative mindset and incentives to share information in the CE have to be established. Moreover – using the full potential of digital product passports – an environment that fosters a balance between transparency and data protection must be built to effectively deal with the mentioned challenges.

This research is of utmost relevance for policymakers and stakeholders involved in the CE and adds to the current academic discourse by addressing challenges related to the adoption of digital product passports. It encourages information sharing in the CE and contributes to a better understanding of the vital role digital product passports play in this relation. Moreover, it underlines the need for strategies that ensure transparency while maintaining data security, enhance information sharing willingness and collaboration, and support the adoption of digital product passports. In giving guidance on what information to share and how, this research derives recommendations for information sharing in the CE and contributes to its accelerated transition.