Circular Supply Chain Management and Transition Towards a Circular Economy: A Case Study from an Industrial Service Provider in Renewable Energy Products

Abstract

In the context of escalating environmental concerns, this study investigates the paradigm shift in supply chain management towards sustainability, focusing on the renewable energy sector. This research centres on a case study of an industrial services provider in the UK and Ireland, specialising in renewable energy solutions, particularly wind turbines. The study is pivotal in understanding the strategic transition towards Circular Supply Chain Management (CSCM) in the face of the impending decommissioning of numerous wind turbines across Europe, underscoring the urgency of sustainable end-of-life strategies. The research is guided by three primary research questions: (1) the implementation of CSCM practices by the company, (2) the challenges and opportunities in transitioning from a linear to a circular supply chain model, and (3) the environmental, economic, and social outcomes of this transition, particularly in the context of the Yaw and Pitch gearbox project for wind turbines. The objectives include assessing the strategies and methods employed by the company in implementing CSCM, identifying and evaluating the transition's challenges and opportunities, and analysing the impact of adopting CSCM practices. The study employed a mixed-method approach involving semi-structured interviews with key managers, in-situ observation of the company’s operations, and comprehensive document reviews. This approach facilitated a multi-faceted understanding of the transition process, which involved aligning the company’s strategic and operational approaches to CSCM with broader industry trends and standards. The quantitative component of the study focused on analysing data from secondary data collection through industry reports and internal company documents. This analysis included projection metrics such as Gross Value Added (GVA), Full-Time Equivalent (FTE) impacts, and the avoided waste to scrape for the Yaw and Pitch gearboxes from 2025 to 2035. These projections complemented the qualitative research to understand the long-term economic, environmental, and social benefits of adopting the circular supply chain model. The company's progression towards CSCM, focusing primarily on refurbishing and remanufacturing wind turbine’s Yaw and Pitch gearboxes, represents a strategic shift from a traditional linear model to one emphasising product longevity and sustainability. The economic impacts are substantial, with a projected GVA of £38.9 million from 2025 to 2035 for Yaw and Pitch Gearboxes. This signifies a noteworthy economic contribution stemming from the company's strategic practices in extending the lifespan of gearboxes. Socially, the transition towards circular practices has significant implications, including creating approximately 1,324 FTE positions from 2025 to 2035. This shift reflects the potential of CSCM practices in contributing to regional economic development, social cohesion, and the creation of new skills and knowledge areas in refurbishment, remanufacturing, and sustainable product design. Additionally, the company's focus on refurbishing and remanufacturing gearboxes substantially reduces its waste-to-scrap ratio, aligning with its sustainability goals and diminishing its environmental footprint. This research offers insights into CSCM practices within the renewable energy sector, contributing to the broader understanding of circular economy practices in supply chain management. It highlights the potential of CSCM in fostering regional economic development, social cohesion, and innovation in sustainable product design. The study also underscores the importance of multi-dimensional strategies encompassing economic viability, environmental sustainability, and social responsibility in transitioning to circular supply chain models.