Circular supply chains and Industry 4.0: an analysis of interfaces in Brazilian foodtechs

Hennemann-Hilario da Silva, Tiago; Sehnem, Simone

doi:10.1108/RAUSP-05-2023-0079

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Sumário

Research paper • RAUSP 59 (2) • Apr-Jun 2024 • https://doi.org/10.1108/RAUSP-05-2023-0079 copy

Circular supply chains and Industry 4.0: an analysis of interfaces in Brazilian foodtechs

Authorship SCIMAGO INSTITUTIONS RANKINGS

Purpose

This study aims to identify the interfaces between Industry 4.0 (I4.0) technologies and circular supply chains (CSC) in Brazilian foodtechs, focusing on key stakeholders’ perspectives to understand the efficiency and sustainability impacts of these integrations.

Design/methodology/approach

Using a qualitative exploratory research design, the study analyzes eight Brazilian foodtechs through interviews and content analysis. It identifies CSC practices and examines the adherence of I4.0 technologies within these enterprises, assessing stakeholder engagement and the implications for CSC optimization.

Findings

Fifteen CSC practices were identified across the foodtechs, with notable integration of three distinct I4.0 technologies. The findings suggest that while I4.0 technologies enhance efficiency in CSC, their adoption is in early stages. Stakeholder engagement emerges as a crucial element for optimizing CSC in the context of Brazilian foodtechs.

Research limitations/implications

This study contributes to the academic discussion on the synergy between I4.0 and circular economy (CE) models, providing empirical evidence of their application in the foodtech sector and highlighting the role of stakeholders in facilitating these integrations.

Practical implications

The findings suggest that stakeholder engagement in circular practices is vital for both supply chain and organizational levels, with potential benefits including improved efficiency and sustainability outcomes. The research also underscores the need for public sector support, including regulatory frameworks and incentives for adopting I4.0 technologies.

Social implications

By demonstrating how I4.0 technologies can support CE practices in foodtechs, the study highlights the potential for these integrations to contribute to more sustainable and efficient food systems, addressing environmental concerns and promoting social well-being.

Originality/value

This study addresses a gap in the literature by exploring the interface between I4.0 technologies and CSC in the emerging context of Brazilian foodtechs, offering insights into the practical and societal benefits of these integrations.

Stakeholders; Industry 4.0 technologies; Circular supply chains; Foodtechs

Practice	Definition
Technological innovation	Includes Industry 4.0 technologies such as blockchain, big data and artificial intelligence, which can support companies in restructuring their processes to adopt circular economy practices
Circular procurement	Aims to cooperate with suppliers to make green purchases, which do not harm the environment, with products that can be recycled and remanufactured
Circular design	Aims to support companies in minimizing their waste and facilitating recycling and remanufacturing processes, which not only improves environmental performance but also enhances the economic performance of companies
Environmental performance	Relates to companies’ ability to protect the environment by reducing waste, energy consumption and toxic waste, from upstream to downstream of the supply chain
Economic performance	Evaluates the ability of companies in producing goods to reduce costs related to material and component supply, recycling and remanufacturing processes, waste disposal, energy and water usage

Category	Technology
Physical	Autonomous vehicles, 3D printing, robotics and new materials
Digital	Sensors, Internet of Things (IoT), blockchain, cloud computing and big data
Biological	Genetics, genomics and synthetic biology

Foodtech	Primary data		Secondary data
Foodtech	No. of transcribed pages	Interviewee – position	Web page	Instagram	LinkedIn	Facebook	Youtube
XYZ	21	Owner	X	X	X	X	X
APX	16	Operations director	X	X	X	X	X
MMN	24	Director	X	X	X	X	X
SAB	6	Director	X	X		X
FBN	7	Commercial director	X	X	X	X
SEI	17	Director	X	X	X		X
MNA	17	Owner	X	X	X	X
ALL	19	Owner	X	X		X	X

Category	Subcategory
1. CSC – circular supply chain	1.1. TI – Technological innovation
	1.2. CP – Circular procurement
	1.3. CD – Circular design
	1.4. EP – Environmental performance
	1.5. PE – Economic performance
2. I4.0 – Industry 4.0 technologies	2.1. PH – Physical
	2.2. DI – Digital
	2.3. BI – Biological
3. STK – stakeholders	3.1. SI – Shareholders and investors
	3.2. EP – Employers
	3.3. CU – Customers
	3.4. SP – Suppliers
	3.5. MN – Managers
	3.6. GV – Government
	3.7. CM – Community

Foodtech	Identified practice	Category
XYZ	Use of eco-friendly packaging, with biodegradable paper that does not require return	1.4 and 1.5

	Utilization of underutilized native food plants in food production. By respecting the interaction between plants and species, the production of these foods does not harm the environment and reduces carbon footprint. The incorporation of biodiversity in agriculture allows for soil and water regeneration while extracting micronutrients from the food. This production process can be scaled up to an industrial level and applied throughout the food supply chain, from production to logistics, processing and commercialization. These types of foods exhibit greater resilience to the impacts of climate change, require reduced pesticide use and offer a rich nutritional profile	1.4
APX	Installation of 210 solar panels for energy generation and the use of two rainwater tanks with a total capacity of one thousand liters for washing the surrounding area of the factory	1.1
	Selective waste disposal according to recycling requirements	1.2
	Knowledge transfer to suppliers through training on agroforestry practices (in a laboratory simulating this culture) and the use of production waste to produce by-products, such as using tomato or orange leftovers to make preserves or jams	1.2
MMN	Low waste generation and utilization of by-products, such as cassava peel, which is sold to suppliers for animal feed, forming a closed-loop supply chain. In addition, the utilization of cassava by-products, such as starch, dough and juice	1.4 e 1.5
SAB	Whenever possible, the use of eco-friendly packaging, even if it comes at a higher cost	1.4 and 1.5
FBN	Offering a bonus for the next purchase when customers return glass packaging	1.4 and 1.5
FBN	Acquisition of suppliers with all necessary regulatory documents and approved through inspection visits	1.2
SEI	Change of fuel for the delivery and collection fleet from diesel to natural gas	1.1
	Purchase of the main raw material, grains, from local producers	1.2
	Use of expired products for animal feed	1.4
MNA	Sustainable design of the manufacturing plant, with water management, solar energy generation, natural ventilation and maximized use of natural lighting	1.3
ALL	Organic product certification through a participatory collective certification, where a group of farmers oversees each other. An official certifying body conducts collective inspections of the entire group	1.5
ALL	Replacement of all plastic packaging with reusable packaging, using their own investment	1.4 and 1.5

Foodtech	Category	Technology	Practice
XYZ	Digital	Internet of Things (IoT)	Enhanced support for supplier and customer management through mobile applications
APX	Digital	Big data	Support for advanced research
	Digital	Internet of Things (IoT)	Monitoring of local producers through mobile and computer applications, with indicators of regeneration and sustainability
	Digital	Cloud computing	Management of all operations in the cloud
MMN	Digital	Cloud computing	Management of all operations in the cloud. Cloud computing: description on product packaging through QR codes, providing consumers with ingredient traceability and information about the producer’s community location
FBN	Digital	Cloud computing	Cloud-based enterprise resource planning (ERP) system
ALL	Digital	Internet of Things (IoT)	Sales through WhatsApp and Instagram, with algorithmic support for product promotion through digital menus

Stakeholder theory questions	Involved stakeholder	Response
How is value created and negotiated?	Main participants in the circular supply chain	Value creation in this area still requires significant improvements due to the high costs of circular practices and Industry 4.0 technologies
Connecting ethics with capitalism	Customers, community, NGOs, among others	Ethics are being strengthened by Industry 4.0 technologies, creating transparency and ethics in transactions
Management to address the first two problems	Engagement of various stakeholders, such as the community, customers and investors	Stakeholder engagement is crucial but challenging, especially for foodtechs seeking growth and profitability

Interfaces	Stakeholders involved	Fundamental authors
Big data supporting research for procuring new suppliers with the aim of increasing circularity in supply chains	3.4 – SP	Castelo-Branco et al. (2019)Castelo-Branco, I., Cruz-Jesus, F., & Oliveira, T. (2019). Assessing Industry 4.0 readiness in manufacturing: Evidence for the European Union. Computers in Industry, 107, 22–32, doi: 10.1016/j.compind.2019.01.007. https://doi.org/10.1016/j.compind.2019.0...
Utilization of the Internet of Things (IoT) through applications for purchasing, selling and monitoring suppliers in circular metrics	3.4 – SP	Culot et al. (2020)Culot, G., Nassimbeni, G., Orzes, G., & Sartor, M. (2020). Behind the definition of Industry 4.0: Analysis and open questions. International Journal of Production Economics, 226, 107617, doi: 10.1016/j.ijpe.2020.107617. https://doi.org/10.1016/j.ijpe.2020.1076... ; Ejsmont et al. (2020)Ejsmont, K., Gladysz, B., & Kluczek, A. (2020). Impact of industry 4.0 on sustainability—Bibliometric literature review. Sustainability, 12(14), 5650, doi: 10.3390/su12145650. https://doi.org/10.3390/su12145650...
Sharing platforms for data and information through IoT among supply chain members, enabling flexible and responsive evaluation of product life cycles and using available data in the supply chai	3.1 – SI 3.2 – EP 3.4 – SP 3.5 – MN	Zhang et al. (2020)Zhang, A., Zhong, R. Y., Farooque, M., Kang, K., & Venkatesh, V. G. (2020). Blockchain-based life cycle assessment: An implementation framework and system architecture. Resources, Conservation and Recycling, 152, 104512, doi: 10.1016/j.resconrec.2019.1045. https://doi.org/10.1016/j.resconrec.2019...
Virtualization of internal processes through cloud computing	3.2 – EP	Zhang et al. (2020)Zhang, A., Zhong, R. Y., Farooque, M., Kang, K., & Venkatesh, V. G. (2020). Blockchain-based life cycle assessment: An implementation framework and system architecture. Resources, Conservation and Recycling, 152, 104512, doi: 10.1016/j.resconrec.2019.1045. https://doi.org/10.1016/j.resconrec.2019...
Use of mobile devices through IoT for tracking the return of reusable packaging	3.3 – CU	Neri et al. (2023)
Traceability of the entire circular production process through cloud computing	3.2 – EP 3.3 – CU 3.4 – SP 3.5 – MN	de Sousa Jabbour et al. (2018)de Sousa Jabbour, A. B. L., Jabbour, C. J. C., Godinho Filho, M., & Roubaud, D. (2018). Industry 4.0 and the circular economy: A proposed research agenda and original roadmap for sustainable operations. Annals of Operations Research, 270(1-2), 273–286, doi: 10.1007/s10479-018-2772-8. https://doi.org/10.1007/s10479-018-2772-...

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E-mail: rausp@usp.br

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[1] Tiago Hennemann Hilario da Silva can be contacted at: tiago.hennemann.dasilva@gmail.com