Circular systems of reuse and recycling may stimulate resource conservation and thereby more sustainable outcomes for marketing systems. Automotive remanufacturing serves as a specific circular marketing system of reuse. However, supply shortages challenge the European remanufacturing marketing system, and current research focuses on micromarketing perspectives in this context. This study addresses this gap by analyzing the system from a macromarketing perspective to better understand reverse channel issues and their relation to the sustainability outcomes of the system. The analysis reveals imperfections in the market that lead to a waste of resources and other environmental impacts. A macro-perspective of the European marketing system for supply and procurement in automotive remanufacturing offers relevant insights, which better explain the observed inefficiencies. The study contributes to a more complete understanding of remanufacturing marketing systems and provides implications for policymakers and for marketers concerned with the design of such systems.
This paper explores the challenges related to the End-Of-Life phase of products and circular systems of reuse and recycling within the commonly established frameworks of product lifecycles. Typically, Original Equipment Manufacturer-centric supply chain perspectives neglect the complexity at the End-Of-Life where many third-parties are involved in reuse and recycling activities. Based on a review of product lifecycle and related recycling literature, this study proposes the application of ‘cascades’, a term originally coined within the biomass domain. We propose and subsequently apply the ‘cascade use methodology’ and identify additional and value-adding End-Of-Life solutions for products and materials. The adoption of cascade utilization into product lifecycles is analyzed and critically discussed using case studies from independent remanufacturing and tire recycling, focusing on the End-Of-Life while excluding business models as renting or sharing. Although theoretically feasible, we argue that the practical adoption of ‘cascade use’ deserves more attention from researchers and practitioners in order to become an integral part of the comprehensive management of product lifecycles.
13 July 2018 in The International Journal of Logistics Management
Purpose: The circular economy grows in popularity in sustainability-oriented environments. Remanufacturing contributes to circularity though it faces challenges regarding reverse supply chains (SCs). Literature focusses on closed-loop supply chains (CLSCs) for reverse flows of products. However, alternative SCs and different market actors provide used components (cores) for remanufacturing through “open-loops”. The purpose of this paper is to investigate the influence of independent actors on core supply and how especially middlemen implement supplier relationship management to address supply shortages in automotive remanufacturing.Design/methodology/approach: The study follows a qualitative research approach to compare remanufacturing SCs in Europe and North America. The analysis aims to identify managerial leverage to reduce supply shortages.Findings: Reduction of information asymmetries and transaction costs is crucial for “open-loop supply chains” to compete with more integrated CLSCs. The study identifies an e-procurement solution that addresses these issues and helps to increase the supply through “open-loops”. Furthermore, regulation may hinder or facilitate supply.Research limitations/implications: It needs to be further investigated to what extent e-procurement and supplier relationship management can reduce shortages. Middlemen who can collaborate with the research would provide further research opportunities.Practical implications: If supplier relationship management adapts to the requirements of remanufacturing, it can increase the supply potential through “open-loop” SCs. The e-procurement solution could serve SCs beyond automotive remanufacturing. Policy makers need to revise legislation hindering these SCs.Originality/value: The study provides novel findings regarding independent actors, their supplier relationship management and their potential to reduce shortages in independent SCs for remanufacturing.