Circular economy supply chain and sustainable sourcing

The incorporation of McArthur foundation’s butterfly model into sustainable sourcing

Abstract

In response to environmental degradation and resource depletion, achieving sustainability in supply chain management has become pivotal, with circular supply chains and sustainable sourcing emerging as critical strategies. This study, employs a questionnaire distributed to employees across three manufacturing organizations in South Africa, aiming to explore these concepts. The questionnaire draws its theoretical framework from the McArthur foundation’s butterfly model. Findings reveal awareness of circular economy and sustainable sourcing among senior employees as opposed to line workers, underscoring the need to access knowledge in this domain. Additionally, there's a clear emphasis on the cross-functional nature of circular economy activities, highlighting the necessity for departmental collaboration. However, integration obstacles persist, including a lack of initial costs and resistance to change. Addressing these challenges is crucial for a smoother transition to sustainability. The study also indicates a growing emphasis on social and environmental factors in supplier selection, alongside cost-effectiveness. This study also finds that educational initiatives must be accessible to employees at all levels, and cross-functional collaboration remains essential for holistic integration. Ultimately, organizations must recognize the ongoing nature of incorporating circular economy principles and continuously spread knowledge while navigating change management and process transformation challenges for a sustainable future in supply chain operations.