Top grade for sustainability: TU Chemnitz inspires with new study!

Top grade for sustainability: TU Chemnitz inspires with new study!

A remarkable research paper on costs and returns in sustainable supply chain management received the “Best Research Award 2024” from the journal “Cleaner Logistics and Supply Chain” on April 8, 2025. This study entitled “On cost and revenue in circular supply chains: Where to close the loop?” was largely contributed by Prof. Dr. Matthias Thürer at Chemnitz University of Technology and developed in cooperation with the Josef Ressel Center for Data-Driven Business Model Innovation in Steyr, Austria. The research examines the analytical modeling of cash flows in both linear and circular multi-stage supply chains.

Thürer highlights that previous research has often focused on dyadic or triadic supply chain structures. A key finding of his study is that companies that are closing the loop can be negatively affected by the reuse of materials. This could lead to companies abandoning circular supply chains if appropriate compensation mechanisms are lacking. This award is the second for the Professorship of Factory Planning and Intralogistics this year; in March 2025, a paper about simulations in resilience research was given the title “Top Trending Article 2024”. The journal “Cleaner Logistics and Supply Chain”, in which the study was published, is known for its transdisciplinary approach, specializing in sustainable logistics and supply chains, such as tu-chemnitz.de reported.

Challenges of the circular economy

Thürer's study is in line with the challenges that are currently shaping the circular economy. According to that Circularity Gap Report 2023 The share of the circular economy in the global economy is only 7.2 percent, a decrease from 9.1 percent in 2018. These sobering figures make it clear that the trend towards a circular economy is negative. Overall economic resource use and greenhouse gas emissions have continued to rise over the past 12 months, reinforcing the problems of linear economics.

However, the circular economy is seen as an essential concept for the sustainable use of resources. It includes ecological aspects such as resource reduction and recycling, and is defined by the “ten R’s”: Refuse, Rethink, Reduce, Reuse, Repair, Refurbish, Remanufacture, Repurpose, Recycle and Recover. Deloitte highlights that the economic benefits of the circular economy consist of new revenue streams, increased efficiencies, cost savings and improved corporate reputation. Furthermore, the full potential of the circular economy could reduce global material consumption by up to 30 percent, which is more urgent than ever given the current challenges.

Companies, governments and consumers are increasingly recognizing the need for transformation. Despite the encouraging views on the opportunities of the circular economy, it is clear that significant efforts are still required to overcome the current deficits and initiate a paradigm shift. The Circularity Gap Report positions the circular economy as a critical tool to promote a regenerative and sustainable global economy.