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Transforming Supply Chains Through the Implementation of the Circular Economy and Sustainable Closed-Loop Models
Abstract
The study analyzes how the convergence between circular economy and closed-loop models reconfigures supply chains still anchored in linear patterns. Based on literature review, cross-industry case studies, and examination of emerging policies, technological, financial, and cultural barriers that keep global circularity below ten percent are documented, as well as incentives that favor rapid extraction over resource regeneration. The findings show that the combined adoption of digital twins, smart contracts, and multi-capital metrics increases visibility into material flows, facilitates coordination between actors, and reduces logistics costs by up to 23%, while decreasing the carbon footprint and strengthening resilience to disruptions. It is concluded that effective circularity demands collaborative governance frameworks, green investment and dynamic capacity building that allow organizations to perceive changes, mobilize knowledge and reconfigure assets with agility, turning the regeneration of resources into a central vector of competitiveness and social legitimacy.
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