Using a Circular Economy and Supply Chain as a Framework for Remanufactured Products in the Rubber Recycling Industry
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5.1. Theoretical Implications
This study expands the CESC used in the rubber industry for remanufactured products and makes clear definitions and measures with six aspects so that the rubber recycling industry can have clearer and practical measures for reference when reusing its CESC.
First of all, the most important aspect is the circular business model (A3). When the rubber recycling industry wants to apply a CESC to remanufactured products, it is necessary to build a new circular business model first. When constructing a new model, the company must develop the capabilities extended by the CE model so that it can better develop remanufactured products when the circular business model is formed. This new process fosters a culture of development because most companies use it [37], forming an atmosphere and even an institutional pressure while sending a message to other companies that do not apply a CESC so as to urge the management of the companies to adopt the CESC together. This non-economic factor, which is helpful for the environment, helps companies implement a circular business model. The new model also brings new job opportunities because it means that the company needs to redesign its process so that the CESC can be better implemented. In this case, the company needs talents with professional knowledge to achieve better development [44].
When a company adopts a CESC, it can better improve the value of resources in its supply chain (A4). Therefore, when a company can effectively use the resources in the CESC, it can reduce the amount of energy used. At the same time, it can also reduce waste generation, and environmental burdens also are lowered [11]. The CESC can make remanufactured products develop a greater value, which can be captured and developed in a better way. In addition to reducing the generation rate of waste and improving sustainability, it can also improve social and environmental benefits [45]. Moreover, integrating collaboration and competition into the system of remanufacturing products can not only optimize the system but also enable an organization to rethink strategies, promote coordination and integration, and ensure that information, materials, and resources all flow efficiently and effectively in the CESC. Furthermore, it can also urge the integration of suppliers and consumers with the company, deepen the degree of cooperation, and construct more efficient processes to create more value [40].
Risk management for the CESC (A2) can help a company choose the most suitable solution, plan the solution quickly and efficiently, and eliminate loopholes [40]. When a company implements a CESC, it is necessary to thoroughly evaluate and prepare solutions to deal with possible obstacles that may arise. These obstacles make a CESC unstable [39], resulting in many problems and affecting the subsequent CESC, such as the quality, output, or performance related to remanufactured products. Therefore, through these assessments, the company can carry out risk control and prevent the interruption of the CESC. The stability of the CESC is relatively important for the sustainable operation of the company. If the CESC is interrupted, it may lead to insufficient production and supply, which means low levels of utilization of resources such as waste products; conversely, it may also result in an extremely low return on investment and affect subsequent operations [39,42].
This study started to conduct research in response to the overly low recycling rate in the rubber recycling industry. This study demonstrates that when the rubber industry wants to make remanufactured products, the CESC is a major focus. When a company can use the concept of the CE to develop new capabilities, then it can form a new circular business model and better manage the risk of the CESC. Additionally, it can also better use the resources in the CESC so that it can stay in the CESC for a longer period of time.
5.2. Practical Implications
This section discusses several key factors that the rubber recycling industry needs to take into account when using a CESC in remanufacturing products, including the following five items: optimizing the production process (C2), sharing data on the product lifecycle (C4), effectively tracking and recycling products (C5), redesigning and remanufacturing products (C13), enhancing resource efficiency (C16), and identifying waste composition and separating materials (C14). Then, management implications are provided to the industry for reference.
Since waste products cannot be ordered like ordinary raw materials, it is not conducive to the entire remanufacturing process if relevant information about waste products cannot be controlled. Therefore, in order to optimize the production process (C2), the company may consider introducing a database to obtain real-time information about scrap products, thereby diminishing the defect rate of the products. Also, because collecting and remanufacturing scrap products is a dynamic process, failing to grasp this information enables the CESC to increase cost when producing remanufactured products, and it is not beneficial to companies in the rubber industry that intend to expand the production lines of remanufactured products. It is even possible to interrupt an operating CESC. Therefore, if the industry wants to optimize the production process, this preliminary task must be completed first. In addition, eliminating production equipment with low levels of efficiency and high energy consumption is also a method. Using updated product manufacturing technology can increase production efficiency as well as the rate of resource reuse; meanwhile, it can also reduce the waste generated in the production process, thereby cutting the consumption cost and increasing income. As to how to make the production process more perfect, this study believes that automation technology and digital production equipment can be introduced into the standardization of the production process; then, the entire production line can be upgraded, which can not only reduce the mistakes caused by human beings but also increase the yield of products and boost product quality at the same time.
Similarly, sharing data on a product’s lifecycle (C4) is also an important measure of implementation when companies want to make more accurate decisions. The benefit of these data is that they enable various departments and organizations to achieve collaborative operations. Another effective model is to integrate product lifecycles into the entire CESC for stakeholders. This study considers that if most stakeholders can reach a consensus on data sharing, it not only ensures data accuracy and integrity but can also elevate the feasibility of sharing data on the product’s lifecycle so that the industry can better track the quality and efficiency of the product’s lifecycle through data sharing and better re-develop the product’s design. Sharing data can also help companies engage in more meticulous management of the manufacturing process, enabling business owners to make decisions that are more beneficial to companies and the environment, avoiding the testing task required in the early stage and using more widely used waste to produce remanufactured products, thereby decreasing the costs of remanufacturing products as well as advancing manufacturing efficiency and quality.
After optimizing the production process and then integrating the product lifecycle, companies can track and recycle products more quickly and effectively (C5) in the CESC of remanufactured products. Based on the analysis of data, data, such as a product’s history, design number, batch, or barcode, are sorted into a database, which can ensure that the source and flow of the product can be clearly traced throughout the waste remanufacturing process. In addition, effective and targeted measures can also be carried out based on such a database or real-time data sharing using standard operating procedures that can contribute to improving the efficiency and accuracy of tracking and recycling products. Since this type of data statistics includes regular product monitoring and evaluation data, it enables companies to review and improve their processes. Conducting comprehensive data analyses can also help ensure that waste is effectively recycled and treated. Both resource sustainability and remanufacturing can ease environmental burdens.
As mentioned above, companies can redesign and remanufacture products (C13) through the collection of the latest information. When redesigning remanufactured rubber products, companies can bring remanufactured rubber products more in line with the function of resource recycling and enhance the properties of recyclable materials, such as rubber powder and recycled rubber made of waste rubber. Through this processing cycle, waste recycling and remanufacturing reduce natural resource usage. By means of redesigning, companies can design the remanufactured rubber products into the that are easy to decompose and try not to use complex material formulas as much as possible, which is also beneficial for subsequent recycling and remanufacturing processes. This type of redesigned rubber remanufactured product is more durable and less prone to wear; meanwhile, it can also be heat-resistant and corrosion-resistant. In the long run, not only can the process of the CESC be perfected but the industry also can be encouraged to implement the CESC together. In addition, cooperation with government agencies for research and development can move the industry toward sustainable development and promote the effective recycling and reuse of rubber products, thus lightening environmental burdens.
Using a CESC can effectively enhance resource efficiency (C16). The use of cost-effective waste in the supply chain can promote the better recycling and reuse of waste, maximize the use of waste, and prevent waste from flowing into the environment to avoid possible environmental burdens. In addition, a resource recycling system can be built to sort and classify recyclable waste into raw materials for remanufacturing products, maximize the value of waste, and reduce carbon dioxide emissions. In addition, adopting innovative energy technologies can boost resource efficiency. These new energy technologies contain applications for the research and development of new waste energy technology, intelligent monitoring and control systems, etc. Efficient resource efficiency represents an efficient CESC, which can not only increase economic and social benefits but also lessen the impact on the environment. When decision makers implement corresponding strategies, they can maximize sustainable benefits and improve the entire CESC simultaneously so that the CESC can move toward sustainable development to achieve an optimal balance. Furthermore, the government can urge relevant environmental protection policies or formulate regulations, such as setting goals for resource recycling and polices for green procurement, which can not only stimulate economic development but also encourage enterprises to improve resource efficiency so as to promote environmental and economic sustainability
Identifying waste composition and separating materials (C14) is one of the important steps to effectively manage waste materials and realize resource recycling. The preliminary task before entering a supply chain is that companies must analyze waste for its composition and separate it. In this process, companies must apply to their respective government agencies for a permit for reuse identification listed in the category of reusable waste rubber, and they can then apply for a permit for the export of waste rubber to manufacturers of rubber goods who need to refer to the serial number. Both parties should access their government’s environmental management system (EMS) for matching, as depicted in Figure 2. Waste composition and materials are separated and identified, and whether the batch of waste rubber can be used as resource materials for remanufacturers is confirmed. If the batch of material can be recycled or remanufactured, companies must report this to the EMS and choose to receive them. In this process, the raw materials entering the factory and output quantities must be reported and provided to the governmental agency for verification. This is to prevent waste rubber from flowing into the external environment and causing pollution. This EMS can avoid the illegal dumping of waste. At the same time, integration is performed via regulations to increase the recycling and remanufacturing of resource-recycled materials, reduce waste output, and alleviate environmental burdens. At present, in the US, European countries, and other countries, most government units and non-governmental organizations are responsible for managing and supervising the flow of waste and statistical data. However, in Asia, government agencies supervise waste management. For instance, China, South Korea, Japan, and Taiwan all have set up EMSs to facilitate the identification of waste composition and the separation of materials. The operation of this system can not only diminish the wasting of natural resources, maintain the balance of the ecological environment, save energy, reduce carbon emissions, and delay the greenhouse effect but also bring people a better environment and quality of life.
In addition, most advanced countries have expanded their policies on waste disposal from simple waste cleanup to management methods such as resource classification, recycling, and reuse. Currently, relevant laws and regulations have been enacted around the world to coordinate and organize waste and renewable resources, respectively. In Japan, the “Waste Management Law” and the “Resource Circulation Law” have been implemented to facilitate waste recycling and reuse so that classification and collection have become part of people’s daily lives. In China, the “Law of the People’s Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste” has been made. In terms of legal content, basic regulations on the classification, collection, transportation, and final treatment of waste have been set up. Additionally, reduction, resource utilization, and harmless treatment have been introduced for waste, and waste classification and recycling have been strictly implemented as well.
The European Union approved “A New Circular Economy Action Plan” on 11 March 2020, viewing the circular economy as an important trend and promoting national industrial development strategies. In the future, countries can refer to the “Waste Resource Recycling Promotion Act” to legislate or enhance the effectiveness of laws and regulations. In line with the new global circular economy trend and zero-waste policy, resources can be classified, recycled, and reused. Additionally, the industry can implement source recycling and reduction management as well as adopt a binary plan of charging fees and independent recycling. Accordingly, reasonable responsibilities for waste cleanup can be established, the effective recycling of resources can be urged, the wasting of raw materials can be diminished, and the goal of zero-waste sustainable development can be gradually achieved as well.
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