The Procurement 4.0 Contributions to Circular Economy

Abstract

This study examines the potential of Procurement 4.0 as a driving force for the circular economy. While the circular economy’s principles are gaining increasing importance, their impact on established procurement practices necessitates exploration. This research investigates how Procurement 4.0 contributes to circularity within business processes. By employing the Delphi Method, the study identifies Industry 4.0 applications that hold promise for optimizing procurement within a circular economy framework. The findings demonstrate that Procurement 4.0, aligned with sustainability goals and leveraging enabling technologies, can enhance business competitiveness in a circular economy context.

1. Introduction

A traditional linear economy follows the “take–make–waste” approach, where natural raw materials are extracted and turned into products. These products are used for a certain period and eventually discarded as waste [1]. This economic model encourages excessive consumption of material resources, creates unsustainable waste management practices, and creates serious health, biodiversity, and climate problems [2]. By 2060, the number of material resources consumed worldwide will almost double, from 90 gigatons in 2020 to 167 gigatons, while consumers will increase by three billion by 2030 [3].

Increased global competition is bothering industrial firms, as intense competition creates pressure on scarce resources, which affects their availability and cost competitiveness [4]. Therefore, many companies have investigated the opportunity to develop a circular economy business model.

Circular economy business models can minimize the overuse of scarce natural resources and reduce waste generation volume [5]. The ambition to promote the transition from a linear economy to a circular economy, decoupling economic growth from resource use, has assumed a central position in the global policy context in recent years. Transitioning to a circular economy is a global challenge [6].

All over the world, there is a scenario of fear about the preservation of the environment, especially with the excessive use of mineral resources and other natural materials as raw materials for manufacturing products. This excessive use tends to the scarcity of natural resources and the accumulation of industrial, organic, and other waste, mostly treated as waste in the traditional model.

There have been barriers to fully adopting circular economy principles within organizations and supply chains due to misunderstandings of the product life cycle and the scarcity of advanced technology [7].

However, these principles can be overcome with the arrival of technology based on Industry 4.0. Some of the most successful circular companies are those that adopt a diverse set of capabilities that help enable the transition, such as embedding circular economy principles at the heart of corporate strategy, making understanding of the circular economy part of internal capacity-building programs, adapting systems and processes across business functions, committing to circular innovation, and promoting circular initiatives in the supply chain. However, if the organization overcomes the implementation barriers, the circular operating model acquires a greater capacity to generate sustainability gains [8].

Procurement 4.0 involves a competitive strategy and partnership strategy for remanufacturing and recycling materials in the circular economy, where supplier development and supplier inventory management for outsourcing decisions are critical to the excellence of remanufacturing operations in the circular economy [9]. Companies with a robust procurement strategy and effective Procurement 4.0 review processes can optimize their procurement processes and achieve better circular economy performance [9].

Procurement 4.0 offers advantages such as increased collaboration in the supply chain, the use of complex data in decision-making, and the up skilling of employees, which are essential in the context of a circular economy and in achieving a company’s sustainability goals [10].

Circular Procurement consists of making agreements to ensure that products are produced according to the principles of the circular economy and will be further processed after use. Such products are, for example, designed to be durable, repairable, and recyclable and can, at the end of their life cycle, be broken down into components, materials, or raw materials, which can then be used again in the production chain [11].

This study investigates the role of Procurement 4.0, facilitated by the enabling technologies of Industry 4.0, in promoting and integrating with circular economy practices. By examining this relationship, the following research questions are formulated:

RQ1: Which enabling technologies of Procurement 4.0 can support the transition to the circular economy?

RQ2: How can Procurement 4.0 contribute to the circular economy?

The present paper aims to assess how Procurement 4.0 can promote the transition to the circular economy, and to identify which enabling technologies of Industry 4.0 can support this transition and propose the establishment of the Circular Procurement 4.0 concept.

The structure is organized as follow: Section 2 presents the concepts of Procurement 4.0 and circular economy principles, as well as the related works. Section 3 presents the Delphi Method, conducted with procurement and circular economy specialists. Section 4 presents the results and respective discussions. Section 5 presents the conclusion, limitations, and future works.

2. Theoretical Background

2.1. Procurement and Procurement 4.0

Pooler [12] lists three objectives of the procurement area in companies: (1) to control costs, (2) to ensure supply savings, and (3) to contribute to profit. These objectives increase the scope of the procurement area in the case of global sourcing procurement since the negotiations involve global suppliers. Procurement is a business management function. Purchasing is the acquisition of products and services, especially for commercial purposes. It covers a full range of activities, from identifying the need for goods and services to placing them [13] and business activities [13].

Developing Procurement 4.0 systems is not necessarily simple [14]. Acquisition will enhance its corporate value as a driver of innovation in the digital age by connecting critical external knowledge and skills with internal business aspects to build their supply chains every time.

The term ‘Procurement 4.0’, which in principle notes the application of specific techniques of ‘Industry 4.0’, is an element of novelty, as it can be identified in very few studies [9].

We consider this term important in the context of the digital age and there is an obvious need for integration with other business processes within organizations. In addition, the literature has shown us over time how enterprise resource planning (ERP) solutions have created various implementation difficulties, and, as a result, organizations have focused more on managing supplier relationships to achieve success in implementing such solutions [9].

ERP solutions facilitate the transfer of information in real time to integrate all the organization’s activities, which can be helpful in the adoption of Procurement 4.0 systems. However, the constraints of such an approach have not been studied thoroughly; in addition to the prohibitive costs, companies need to consider procedures, capabilities, and knowledge to implement such an approach successfully [9]. While the authors mentioned above have taken significant steps to show how the procurement function is critical, the literature could benefit from further research in this regard in order to produce empirical evidence in different contexts and approaches [15].

Procurement 4.0 functions are supported by Industry 4.0-enabling technologies: Internet of Things (IoT), Cyber–physical systems (CPSs), Big Data Analytics (BDA), Artificial Intelligence (AI), and Blockchain (BC) [14,16]. By the end, Procurement 4.0 added a Sustainability dimension to regular procurement, with both social and environmental influence [16,17], and through Blockchain, some legal issues can be addressed [18].

2.2. Principles of the Circular Economy

In 1972, Meadows et al. [19] published a study entitled The Limits to Growth. Commissioned by the Club of Rome, the study projected the future of our global system, systemic relationships, and the evolution of the world’s population, industrial production, food, pollution, and resource depletion. The 1972 report predicted a scenario of “overload and collapse” in the second half of the 21st century, in which our current patterns of production and consumption are extrapolated along with population growth, leading to an unsustainable state for humanity and the environment.

However, circularity offers a solution to this scenario by using and reusing raw materials more effectively than simply being “consumed”. In addition, the circular economy will generate an economic system in which there will be a new demand for skilled labor to repair and recycle products, contributing positively to average levels of well-being and prosperity.

Pearce and Turner [20] are recognized as the pioneers in introducing the term circular economy, considering the relations of economic functions to those of the environment. However, the formal proposal is well disseminated and promoted worldwide by the Ellen MacArthur Foundation (EMF). The circular model proposes to close the cycle (Extract, Transform, Produce, Use, and Discard) by rethinking economic and social practices to bring the functioning of the economic system closer to the way nature executes its processes. The model can drastically reduce the amount of new resources needed for production and the amount of waste discarded. However, to do so, it is necessary to establish new social relations [21].

Another definition detailed by Geissdoerfer et al. [22] is that the circular economy is a regenerative system in which resource input and waste, energy emission, and leakage are minimized by slowing down, closing, and narrowing material and energy cycles. This can be achieved through long-lasting design, maintenance, repair, reuse, remanufacturing, refurbishment, and recycling.

The circular economy (CE) model replaces the linear economy model, based on extraction, production, and disposal. In comparison, the available resources are finite. Maintaining the current trend of natural resource consumption in this model would cause the available reserves for some materials to be depleted in a few decades, with the risk of making it unsustainable in the long term. Resources generally used in supply chain activities, new real-time information, and communication technologies have increased the ability to manage the flow of materials, contributing to logistics operations in a practical/efficient way, using new tools for geolocation, inventory management, and traceability of the entire product life cycle [23].

The circular economy is an alternative to sustainable development because it eliminates waste and pollution from the beginning of the production chain, seeking to keep materials in use and regenerate the system [21]. Three other definitions of the circular economy are adopted by the reference institutions in the area. The World Economic Forum presents an industrial model that dissociates revenues from input and material [24]. The European Commission [11] comments that the value of products, materials, and resources is maintained in the economic area for as long as possible in the circular economy, and waste generation is minimized; the third approach of the Ellen Macarthur Foundation comments that an economy that provides multiple mechanisms of value creation is decoupled from the consumption of finite resources [21].

The circular economy aims to transform waste materials into valuable goods and services, increasing resource efficiency and eliminating waste throughout the value chain. This can be achieved by using lightweight, durable, and efficient materials, replacement, eco-design, industrial symbiosis, and rental [25].

According to Jesus et al. [26], The CE can be considered as:

(I) An integrative concept to achieve “clean congruence”, guiding new institutional arrangements that correspond to environmental considerations such as socioeconomic performance, promoting technical–economic development that does not depend on the consumption of finite resources;

(II) A multi-level structure (micro, meso, and macro) that reconfigures and redirects production and business models towards resilience and sustainability;

(III) An all-encompassing notion that requires specific actions to minimize resource extraction, maximize reuse, increase efficiency, increase waste recycling, and develop new business models.

2.3. Procurement and the Circular Economy: Related Works

A search at Scopus and Web of Science with a string related exactly with the theme of this research (“procurement 4.0” AND “circular economy”) returns only three articles in Scopus [9,10,27] and four articles in Web of Science [9,10,27,28]. Bag et al. [27] investigated procurement’s application in the CE for remanufacturing, particularly focusing on productivity improvements. Corbos et al. [28] introduced the concept of Strategic Procurement 4.0, evaluating the impact on Organizational Competitiveness. This paper deviates from these approaches by delving into the enabling technologies of Procurement 4.0 and their impact on CE principles.

Circular Procurement has become one of the most recent recommendations for debating environmental sustainability. While economic growth remains the primary objective, this research also acknowledges the constraints imposed by limited raw materials and energy supplies, as well as the emergence of innovative business models [25]. In this condition within Supply Chain Management (SCM), no other area can play such a fundamental role in the transition to a circular economy than Procurement Supply Management [29].

Green buying requires active research [30]. Witjes and Lozano [25] proposed a public procurement agenda focusing on circular economy principles, including non-technical and technical descriptions and services/products; the guidelines are as follows: decreasing the use of precious raw materials, complete recovery, and less waste production. A circular economy study by Stern and Stern [31] discussed green industrial achievements and resource-intensive effectiveness.

The comparative environmental impact of various product procurement strategies, within industries that possess capabilities for product reuse and recycling, are related with the integration of circular economy principles into SCM. This function has been seen as potentially feasible for managing disruptions in the supply of critical and strategic materials [30].

Procurement activity in a circular economy will redefine quality, time, and price value [32]. A circular economy needs inputs to be technically invigorating and biologically refreshing to mitigate the negative environmental impact [33].

Sprecher et al. [34] introduced resilience metrics to quantify the resilience of critical material supply chains to disruptions based on circular economy principles. On the other hand, Gaustad et al. [35] indicated that many companies cannot allocate the time and resources needed to track these dynamic and complex issues. They suggested that circularity strategies such as recycling, lean principles, dematerialization, and diversification have significant potential to reduce vulnerabilities in the supply of materials.

3. Research Method

This research used the Delphi Method, a technique established in the mid-20th century within qualitative research [36]. This method offers a structured approach for gathering and synthesizing the anonymous opinions of experts on a specific topic [37]. By leveraging anonymity and controlled interactions between participants, the Delphi Method yields valuable insights applicable to diverse academic disciplines [38].

This technique is characterized by its anonymous collection of narrative group opinion, coupled with the tightly structured nature of the process and quantitatively described results [39]. This approach is particularly useful when there are insufficient empirical data to make a valid prognosis or when experts are needed to provide insights on complex matters where precise information is unavailable [40].

The method involves gathering expert opinion through a series of progressive and iterative questionnaires to reach consensus [41]. This process is designed to allow experts to provide their opinions anonymously, which helps to reduce the influence of personal biases and increase the validity of the results [37].

The Delphi Method’s versatility extends across diverse fields, including education, healthcare, and business [38]. Its particular strength lies in its ability to inform decision-making under conditions of data scarcity or when expert judgment is needed on intricate issues lacking readily available precise information [40].

It offers two key advantages for researchers. First, it facilitates the collection of qualitative yet focused expert opinions on future trends [39]. By mitigating the influence of individual biases and assumptions, the Delphi Method fosters a more convergent understanding of potential future developments. Second, the method’s inherent flexibility allows for adaptation to the specific needs of each study [38]. This adaptability makes the Delphi Method a valuable tool for informing decision-making processes across various disciplines.

The Delphi Method is not without limitations. The process can be time-consuming and resource-intensive, requiring expert input and development of specialized materials, potentially leading to higher costs [37]. Additionally, the selection criteria for experts can be subjective and susceptible to bias [40].

In summary, the methodology used in this paper is a valuable tool for qualitative research that offers a structured approach for gathering and synthesizing the anonymous opinions of experts on a specific topic [36]. Its anonymity and controlled interactions between participants help to ensure the validity of the results, making it a useful methodology for diverse academic disciplines [37,38].

The present paper employed a three-stage Delphi process to gather expert insights on the role of Procurement 4.0 in promoting the transition to the circular economy. Two distinct questionnaires (detailed in Appendix A) were disseminated electronically via a Google Forms link. Questionnaire A was designed for procurement specialists, while questionnaire B targeted circular economy specialists. This ensured that each group received only the questions specific to their domain of expertise and prevented any potential cross-contamination between them. The procurement specialist group consisted of 5 participants, whereas the circular economy specialist group comprised 4 participants.

Stage 1: Invitation and Consent

The researchers initiated the study by contacting potential participants via email, clearly outlining the research objectives, methodology, potential contributions, and benefits of participating. Adhering to ethical guidelines, participants’ identities were kept confidential throughout the study.

Stage 2: Data Collection

Two structured questionnaires were administered using Google Forms to gather data from the experts. The first questionnaire focused on procurement-specific aspects, while the second addressed topics related to the circular economy. The procurement questionnaire comprised 23 questions, while the circular economy questionnaire included 17 questions.

Stage 3: Data Analysis

The data analysis process involved the following steps:

• Data Consolidation: The researchers compiled all responses received from the experts.
• Cross-Analysis: A thorough analysis of the responses was conducted, identifying patterns and intersections of insights across the expert panel.
• Evidence Identification: Key pieces of evidence supporting the main themes and conclusions were extracted from the data.
• Result Synthesis: The researchers synthesized the findings into a coherent narrative, presenting the key results of the study.
• Interpretation and Conclusions: The researchers interpreted the findings, drawing meaningful conclusions and implications for the implementation of Procurement 4.0 principles within the circular economy framework.

4. Results

The consensus degree of each group was evaluated through Cronbach’s Alpha (Appendix B) considering only the Likert scale questions of both procurement and CE questionnaires. The results showed α_P = 0.898 and α_CE = 0.875 for, respectively, procurement and CE questionnaires, revealing a high level of consensus.

The Delphi results are presented in two stages:

• Delphi Results—Procurement: This phase focuses on Procurement 4.0 and its enabling technologies, with the results of the answers of the procurement experts.
• Delphi Results—Circular Economy: This phase focus into the circular economy and its principles, with the results of the answers of the circular economy experts.

Following these individual analyses, a third stage explores the convergence between the two groups of results. This final stage will examine the areas of proximity and identify potential synergies between Procurement 4.0 and the circular economy.

4.1. Delphi Results: Procurement

We consider that procurement involves several processes, including the identification of procurement needs, the establishment of requirements and specifications, the selection of suppliers, the negotiation of contracts and prices, the management of deliverables and quality, as well as the management of risks and conflicts. We recognize the following functions of procurement:

✔

DISCOVERY: This involves the search and selection of suppliers. To choose the best suppliers, it is essential to define objective processes to evaluate, select, and monitor suppliers that offer quality products or services at prices consistent with your needs.

✔

NEGOTIATION: Establishment of agreements, contracts, rules, and parameters for supply, both about contractual aspects (deadlines, price, and payment terms) and about the intrinsic aspects of the product/service to be provided (quality criteria, packaging, place of delivery, etc.).

✔

ACQUISITION: Proposes supplier performance evaluation indicators, which are necessary to monitor and ensure that suppliers comply with the terms of the contracts. Acquisition defines compliance parameters and rules for the Procurement department. In this way, the Acquisition function can be understood as an internal function of Procurement.

Within a qualitative research framework, this study employed an online questionnaire to gather data from a panel of procurement professionals. The subsequent section presents the results obtained through the application of the Delphi technique. With their experience of the area, the respondents also contributed that the area can be more comprehensive, including tasks such as monitoring the level of services and defining internal requirements, where the purchasing area will understand the demand in-depth, especially in terms of Total Cost of Ownership (TCO).

The answers indicate that all respondents agree that the essential functions of procurement are Discovery, Negotiation, and Acquisition, as shown in Figure 1.

Considering that the Discovery function is one of the essential functions of the procurement area, with the expertise of the respondents, the following tasks were also added: monitoring the level of services and the issue of defining internal requirements, where the area understands the demand in-depth, especially in the Total Cost of Ownership (TCO) item, which is an instrument for analyzing the total costs involved in the acquisition of a product, as shown in Figure 2.

In the Negotiation function, there was a unanimity of tasks, including definitions of price rules, deadlines, delivery methods, packaging, quality and compliance standards, and payment methods with the supplier. As a contribution and benefit from the respondents’ experience, they suggested the inclusion of Total Cost of Ownership (TCO) and Cost Breakdown as an analysis method that enables the understanding of the elements that make up the costs of products or raw materials offered by suppliers. Figure 3 shows the tasks of Negotiation.

In the Acquisition function, among the tasks presented, all respondents pointed out that the main tasks are service orders and contract administration, followed by price and compliance standardization for the area and budgets and quotations tasks.

In recognition of the professionals’ expertise, the Acquisition function was expanded to encompass demand management, risk management, analysis of supplier KPIs and SLAs, and monitoring compliance with agreements. Figure 4 shows the Acquisition function tasks.

The problem analysis points to the emergence of Industry 4.0 enablers, which has resulted in a shorter purchasing cycle. At the same time, supplier management, vertical and horizontal corporate integration, and better analytical data quality are all crucial for success. With individualized, sustainable, flexible, and resilient production, among the tasks that respondents pointed out, 60% of the answers agreed and 40% partially agreed. Figure 5 shows the importance of Industry 4.0-enabling tools.

According to the enabling technologies of Industry 4.0, the answers of the experts all agreed that Big Data Analytics is the most used in the area of procurement, followed by the enabling technologies of Artificial Intelligence (AI), Internet of Things (IoT), Digital Integration, and Blockchain, with Advanced Robotics and Cyber–Physical Systems also being used.

In the area of procurement, the use of Big Data Analytics is an indispensable element in dealing efficiently and effectively with a large volume of data generated from Cyber–Physical Systems, which is an essential tool for the capacity of data processing regarding speed, variety, and volume, in addition to obtaining insights for decision making. Experts in the field were unanimous in saying that they agreed with the statement. Figure 6 shows the unanimous use of Big Data Analytics.

The data analysis involves data collection activities from all sources, external and internal, to optimize the procurement area; the data analysis is carried out in a set of Business Intelligence technologies, enabling the detection of patterns in large data sets to predict future events, predict supply promptly, and lead to inventory reduction and lean operation, with 80% of experts in the field strongly agreeing and 20% partially agreeing. Figure 7 shows the data on the use of Business Intelligence.

The Internet of Things (IoT) is considered one of the leading enabling technologies of Industry 4.0, as it ensures interconnectivity between elements and devices, enabling a transparent environment between supplier and buyer and traceability and trust about the incorporation of heterogeneous devices from different participants with different functionalities in a unified and real-time network. Procurement experts presented the following results: 60% said they strongly agree with the statement, with 20% saying they partially agree and the other 20% partially disagreeing.

Regarding the enabling technologies of Industry 4.0, Blockchain consists of a decentralized ledger distributed across nodes, ensuring the recording and sharing of data in a secure, reliable, and tamper-proof manner through cryptography. Blockchain can bring reliability and traceability to supply chains and exchange relationships through tokens and smart contracts. It also allows for decentralization and independence from the traditional financial system. It was pointed out that 60% of experts fully agree with the statement, and 40% partially agree.

Cyber–Physical Systems, which are responsible for integrating the physical world with the virtual one, emphasize decision-making in a decentralized way due to the systems and define technology as a system that uses sensors and actuators to collect physical data and act through the interaction between man and machine. The control of physical inventory is one of the essential functions of the procurement area. Experts on this question answered such that 60% strongly agree with the statement, 20% partially agree, and the other 20% partially disagree.

In the case of Artificial Intelligence in the area of procurement, it can be applied to contract management and automated supplier discovery, performing a support function for daily administrative business tasks and serving as support for decision-making. The experts responded such that 80% strongly agreed and 20% partially agreed with the statement.

Where Procurement 4.0 is established, a digitalized process is established, which involves activities such as intelligent planning, online self-generation of purchase requisitions, supplier self-selection, automatic generation of purchase orders, automatic release of the purchase order, automatic sending of the order to supplier, online tracking of deliveries and goods, digital signature of proof of delivery, online payment, and proof of payment automatically sent to the supplier.

Experts in the field responded such that 80% strongly agree with the statement and 20% partially agree. Figure 8 presents the results of the enabling technologies of Industry 4.0.

Experts in the field confirm that, regarding the enabling technologies of Industry 4.0, it is essential to recognize that adopting these technologies presents challenges. The implementation of enabling technologies of Industry 4.0 requires significant investments in infrastructure, data management systems, and workforce training. Organizations need to address data security, privacy, and interoperability issues when leveraging technologies such as big data and IoT. In addition, the assimilation of multiple technologies can pose compatibility problems and require organizational structure and process changes.

To fully harness the potential of Industry 4.0-enabling technologies in procurement, organizations must optimize a comprehensive strategy that organizes the adoption of technologies with their business objectives. These strategies should consider organizational culture, change management, and stakeholder engagement.

4.2. Delphi Results: Circular Economy

The present research investigates how procurement processes, coupled with enabling technologies, can act in the critical role for the manufacturing sector’s transition towards a circular economy. The analysis was performed based on an online questionnaire and was grounded in the technical cycle of the circular economy butterfly model, specifically focusing on the sections which represent strategies like sharing, maintenance/extension, reuse/redistribution, and recycle/remanufacture/renew. The results of Delphi Method were obtained from experts in the area of the circular economy. The Delphi was composed of 3 academics and 1 market practitioner. Figure 9 shows the qualifications of the specialists.

Among the enabling technologies of Industry 4.0 are those that offer the potential to assist in the circular economy. Figure 10 presents the enabling technologies of Industry 4.0, emphasizing the circular economy.

For the concepts of enabling technologies in Industry 4.0, which offer the potential to assist in the circular economy, the experts in their entirety pointed to Big Data Analytics and Artificial Intelligence (AI) tools as having the most potential, followed by Blockchain and Internet of Things (IoT), Advanced Robotics and Cyber–Physical Systems, and with less potential Vertical and Horizontal Integration and Mass Customization.

The questions asked by circular economy experts, using the Delphi methodology, provided the following answers:

Q1: The transition from the linear economy to the circular economy faces some barriers, which can be classified into four major groups: technical–productive and process barriers, economic and market barriers, regulatory barriers, and social factors. The use of Industry 4.0-enabling concepts and technologies to overcome these barriers is, according to the experts’ answers, 50% as important and 50% as fundamental for the transformation to occur.

Q2: In the question that considers the reuse/redistribute cycle in the implementation of circular processes in the industry, regarding the negotiation with the distributor of the manufactured product, according to the experts’ answers, 75% think it is somewhat complex and 25% think it is challenging.

Q3: Considering the remanufacturing cycle in the implementation of circular processes in the industry, from the answers of the experts concerning the discovery of remanufacturing services, with the manufacturer’s involvement, 75% think it is critical, and 25% believe it is important.

Q4: Still in the remanufacturing cycle in the implementation of circular processes in the industry, regarding the negotiation with the manufacturer, involving contracts and licenses, spare parts, etc., to recover or remanufacture equipment, the answers of the experts point out that 75% think it is fundamental and 25% think it is important.

Q5: For the question that considers the recycling cycle in the implementation of circular processes in the industry, the opinion of the experts on the discovery of a supplier of recycled material or an organization capable of collecting and recycling waste and supplying it in the required volume is that 75% think it is fundamental, and 25% believe it to be important. Figure 11 shows results of participant perspectives regarding the technical cycle.

On the issue that considers the sharing cycle in the implementation of circular processes in the industry, understood here as the final consumer of machinery and equipment, the discovery of partners willing to share productive resources, as the answers of the experts pointed out, will be challenging.

Regarding the question that ponders the maintenance/extension cycle in implementing circular processes in the industry, the discovery of maintenance services, according to the experts’ answers, will be somewhat difficult.

On the issue that reflects the reuse/redistribute cycle in the implementation of circular processes in the industry, the negotiation with the manufacturer of the manufactured product will be, according to the experts’ answers, difficult.

Considering the four cycles of the circular economy, with the establishment of internal rules and parameters of the industry for the establishment of suppliers, presented the following result of the respondents: all agree that the supplier’s compliance with the local solid waste policies, laws or regulations and the environmental responsibility of the supplier are the most advisable, followed by the social responsibility of the supplier and then the ISO 14.000 certification [42].

Regarding the importance of the procurement area for the circular economy, all respondents pointed out that it has a lot to contribute.

In the question that considers some of the possible applications of Industry 4.0-enabling technologies for the circular economy and points out their potential to contribute to the Circular Economy, according to the experts’ answers, they presented the following results:

• Internet of Things: The possibility of tracking a material or equipment throughout its entire life cycle has lots of potential;
• Cyber–Physical Systems: Digital mirroring of production and logistics processes for simulation or real-time monitoring and control showed that 50% believe it has some potential; 25% of the answers present it with a lot of potential and 25% indicate that there is no potential;
• Interaction with Big Data Analytics: Value creation through the extraction of information from data on production, consumption, and reverse cycles presented the following results: 75% believe that there is a lot of potential and 25% believe that there is some potential;
• Artificial Intelligence: Automated discovery of partners for sourcing materials, equipment, or services, automated price quotes, and waste identification, presented the following results from the experts: it has a lot of potential;
• Blockchain: Automated negotiation with partners, establishment of digital contracts, creation of alternative means of payment and social currencies, traceability, security, and preservation of transactional records, according to the responses of the experts, showed that 75% believe that there is a lot of potential and 25% of the answers presented that there is some potential. Figure 12 shows the potential of enabling technologies for the circular economy.

Following the answers obtained in this questionnaire, it is possible to say that the answer of the research question RQ1 was obtained: Which enabling technologies of Procurement 4.0 can support the transition to the circular economy? According to Figure 10 and Figure 12, Big Data, Internet of Things, and Artificial Intelligence are the main technologies that have lots of potential to support the transition to the circular economy; significantly, Big Data emerged as a unanimous choice among experts, identified by all as one of the technologies with the potential to support the circular economy (Figure 10). Furthermore, the scale of potential technologies for the circular economy was evaluated as having lots of potential (Figure 12).

4.3. The Establishment of the Circular Procurement 4.0 Concept

The paper explores the synergy between Procurement 4.0 and the circular economy through the enabling technologies. The answers of specialists regarding the enabling technologies showed that Big Data Analytics was unanimously rated as relevant by both groups of experts. Blockchain, Artificial Intelligence, and Internet of Things were scored with lower intensity and Cyber–Physical Systems with even less, but they were still relevant. The CE specialists indicate the high relevance of all technologies to improve the CE, exception being CPS, with moderate relevance. A detailed analysis is shown in Appendix C, with a hypothesis test.

The leading enabling technology of Industry 4.0 that will have the greatest occurrence of procurement with the circular economy, in the opinion of experts, will be Big Data Analytics. Figure 13 exposes this opinion.

Procurement 4.0 leverages Industry 4.0-enabling technologies to optimize procurement functions by facilitating the utilization of real-time data and analytics. This enables deeper insights into supplier performance, demand patterns, and market trends. Consequently, procurement strategies can be optimized, potential risks proactively identified, and supplier partnerships optimized.

And the circular economy, in contrast to traditional linear models, focuses on the minimization of waste and pollution. This objective is achieved through the implementation of closed-loop supply chains, which facilitate resource conservation.

Drawing upon the definitions of Procurement 4.0 and the circular economy, and recognizing the convergence of perspectives among professionals from both fields regarding the potential of Industry 4.0 technologies for application in their respective domains, we can lay the groundwork for a new concept: Circular Procurement 4.0. Figure 14 exposes the origin of Circular Procurement 4.0.

5. Conclusions

This paper introduces the concept of Circular Procurement 4.0 from the union of Procurement 4.0, which utilizes Industry 4.0-enabling technologies to improve the procurement basic functions, and the circular economy.

The concept of Procurement 4.0 builds upon the foundation of competitive strategies and collaborative partnerships to promote remanufacturing and recycling within the circular economy. Circular Procurement 4.0 goes a step further by establishing formal agreements that guarantee products are designed and manufactured according to circular principles. These agreements ensure the products can be effectively reused or reprocessed after their initial use phase, facilitating closed-loop material flows.

The research questions, RQ1: Which enabling technologies of Procurement 4.0 can favor the transition to the Circular Economy? and RQ2: How can Procurement 4.0 contribute to the Circular Economy?, were answered through Delphi methodology. This structured approach involves multiple rounds of online questionnaires distributed to a panel of experts. The data collection process unfolded in three distinct stages, incorporating scenario planning and graphical representations to analyze the responses to the research questions.

As a result of RQ1, the experts unanimously pointed out the Big Data Analytics technology as being the one with the greatest potential for this evolution, followed by the Artificial Intelligence (AI) and Internet of Things (IoT) technologies. These technologies had a slightly lower, but no less relevant, degree of potential.

In answer to RQ2, the Supplier Management function was presented as the one with the greatest potential for success, as well as the vertical and horizontal integration of companies, with individualized, sustainable, flexible, and resilient production; among the respondents, it was found that 60% of the answers totally agreed and 40% partially agreed.

In this sense, the objective of the research can be considered fulfilled. The main contribution to theory is the joining of Procurement 4.0 and the circular economy, resulting in the concept of Circular Procurement 4.0. To practitioners, the results can contribute to investment decision-making on technologies, prioritizing solutions that include Big Data Analytics, followed by AI, Blockchain and IoT.

This research has a method limitation due the difficulty finding and contacting specialists with knowledge in both areas: procurement and the CE. Due to this, we resorted to research with two distinct groups of experts, so some interpretation bias may have arisen when making the results compatible. Furthermore, we used Delphi due the absence of real-world cases of Procurement 4.0 and CE, both from our access to case studies and secondary data from the literature, so, the results are prospective.

One conceptual limitation is that the research considered only the technical circle of the CE EMF model; the biological circle was not considered. In the same sense, the questionnaire was based on the 4R model, and other models such as RESOLVE or 10R was not considered.

Future research in this domain should prioritize investigating practical implementation strategies for integrating enabling Industry 4.0 technologies within procurement and circular economy practices. Conducting empirical studies and collecting real-world case examples can offer valuable insights into the actual impact of these technologies on cost-effectiveness and overall sustainability. Social and legal aspects can also be investigated, especially those related to Blockchain. Furthermore, it is crucial to explore the ethical implications associated with technologies like Artificial Intelligence (AI) and Blockchain within the context of procurement. This includes a thorough examination of privacy concerns, as ensuring responsible adoption is vital for the long-term success of these technologies.

In light of the presented arguments and research findings, it can be concluded that the strategic integration of Industry 4.0-enabling tools within procurement processes holds significant potential to facilitate the transition from the linear to the circular economy. This approach offers a multifaceted solution by promoting resource conservation, minimizing waste generation, and fostering more sustainable production and consumption patterns.