Circular economy and digitalisation as enablers of combined transport

Abstract

Globalisation, escalating competitiveness, depleting resources, shifting demographics, regulatory changes, and environmental issues have prompted businesses to create sustainable business strategies in the past few years. This thesis examines the current state of circular economy and supply chain digitalisation in Southern Ostrobothnia small and medium-sized companies. The objective is to identify the business opportunities, level of exploitation and foresight brought by the circular economy and digitalisation. As a result, this thesis forms an understanding of the requirements of circular economy and digitalisation in supply chains and combined transport. In the empirical section of the thesis, companies in the South Ostrobothnia region are interviewed using a semi-structured interview methodology to determine the current status of the circular economy, digitalisation and combined transportation. As a result, fifteen themes are identified, which are further categorised into four main categories. The final section of the thesis compares the results of the literature review and the results from the interviews. It turns out that CE and digitalisation are in symbiosis since most of the CE initiatives are aided or enabled through digitalisation. Digitalisation can be seen as a key enabler of CE since technologies lower operating costs, develops collaboration through the supply chain, aid in closing the material loops, helps construct a regenerative economy and harmonises the objectives of environmental, economic, and social benefits. Digitalisation forces businesses to transform fundamentally. Furthermore, CT itself aligns with the CE objectives through TBL sustainability. CT combines elements of both CE and digitalisation in many respects. When the emphasis on mere economic benefit shifts to ecological and social sustainability principles, CT becomes an even more appealing option. Identifying internal and external factors that align with CE and digitalisation will help businesses to make the shift towards new smart, and more sustainable business models. Therefore, both CE and digitalisation should be comprehensive throughout the entire strategy, not merely technology adoption and operation. Thus, seven requirements were identified from the literature and interviews in regard to CT; 1) networking and collaboration, 2) planning, 3) ITS and digital technologies, 4) infrastructure, 5) awareness and paradigm shift, 6) regulation, policies and political frameworks and 7) service and price ratio. These seven requirements ultimately form a strategic framework for CT enabled by CE and digitalisation.