Integrating blockchain with digital product passports for managing reverse supply chain

Abstract

The evolution of the circular economy has led to the adoption of circular supply chains, where efficient management of the reverse supply chain enhances resource utilization, minimizes waste, and fosters a circular supply chain. However, managing reverse supply chains presents numerous challenges including a lack of information transparency and traceability, inconsistent cooperation among stakeholders, and uncertainty in recycling process, such as variations in quantity, quality, and timing. To address these challenges, an information sharing framework that integrates blockchain technology with digital product passports (DPPs) is designed to manage reverse supply chain information. Subsequently, a system dynamics model is applied to evaluate the potential impacts and feasibility of this framework within the reverse supply chain and its implications for the forward supply chain. The results indicate that the application of the proposed framework enhance the legal recycling market, reduces the negative environmental impact of illegal recycling activities, mitigates the bullwhip effect within the forward supply chain, and improves market fulfillment rate. The proposed information sharing framework can be employed to enhance the information efficiency of the reverse supply chain, aid in the recovery of end-of-life products and critical resources utilization, thereby supporting the transition to a circular economy.