Scaling up a circular business model for remanufacturing: A case study of a sustainable value creation strategy for the white goods industry

Abstract

AbstractBecause of the ever‐increasing pressure on producers to adopt environmentally responsible industrial practices, remanufacturing has emerged as a key strategy to address the challenges of resource conservation and waste reduction. In this paper, we address a conspicuous research gap regarding innovative and large‐scale circular solutions in the form of remanufacturing systems. We investigate how the private sector can build widespread remanufacturing networks to handle waste from the appliance industry. Starting from a successful case study of a leading Italian distributor of spare parts, our analysis expands their existing business model and inductively develops an original framework for regional remanufacturing. Our resulting model encompasses a centralised hub specialised in high‐tech data management and supply‐chain logistics, coupled with two tiers of remanufacturing labs and repairers, diffusing triple‐bottom‐line benefits throughout the local territory. We discuss the generalisability of such a centralised/decentralised model and propose avenues for the policy support of systemic circular innovations.