Risks pertaining to the CE in the healthcare supply chain
| Type of risks | Risk categories | Potential risks | Description |
|---|---|---|---|
| Hazard risks | Cargo thefts | Cargo theft is a challenging security issue during shipment and transportation in the supply chain, having a severe impact on operational and financial status; the compliance risk of an organization may affect the future work of CE industries | |
| Safety measures | Violating the safety measures in production operations affects overall process effectiveness | ||
| Financial risks | Investment risk | Lack of upfront cost invested in CE, insufficient source of funds and potentially reduced profits affect the organization’s financial status, leading to layoffs and lockdowns, which may affect other organizations in the circular network | |
| Product price | The higher price of environmentally friendly materials and the high price differences between recycled products and virgin products potentially escalate production costs | ||
| Controlled cash-flow | In the CE and closed-loop supply chain, a poor financial flow destroys profitability and good supply chain coordination | ||
| Operational risks | Supply risks | Logistics risk | Improper location selection of depots, sorting waste stations and containers. Inefficient collection routes |
| Capacity risk | Improper selection of size, type and capacity of the transport fleet | ||
| Material delay | A CE reutilizes waste materials since resources between industries cause the delay (variation in the distribution time) of one company resource, which will affect the possible future outcomes and operational processes of other companies | ||
| Import delay | Potential issues from customs paperwork, port strikes and labor issues | ||
| Material quality | Lack of quality raw material procurement minimizes the value of green production and operational performance | ||
| Supplier performance | Supplier performance is considered an important area in CE, but due to multiple risks, unreliable supplier performance and financial losses also occur | ||
| Product performance | Product performance regulates timeline production, product quality and profitability in the CE for any changes in performance that lead to economic and manufacturing risk | ||
| Product service life | A CE also should focus on quality products. Low-quality products are assumed to require more repairs, renovations and upgrades; poor service creates life and quality risks | ||
| Demand risks | Customer satisfaction | Successful organizations are primarily based on customer satisfaction, but customer satisfaction is based on the value of cost spent over a quality product. If the quality value decreases, the risk value increases | |
| Forecast error | Seasonal problems, lead times, poor information, poor systems, poor communication, poor skills | ||
| Product quality | In a CE, the quality of core products determines the cost of remanufacturing and remanufactured product quality | ||
| Market risks | Lack of an appropriate mechanism for take-back, the obstacles service providers face to retain ownership of a sold product in legal terms | ||
| Process risks | Organizational risks | Poor leadership and management toward CE in the supply chain and a lack of appropriate organizational structure to implement a CE in the healthcare sector | |
| CE framework risk | Lacking successful business models and frameworks for implementing a CE; difficulties in making product disassembly operation easier and safer during the reverse chain; and biodegradable resources in circular supplies | ||
| Workers' coordination | Deviation in the progressed work will lower the expected value of specific supply-chain performances and other company performances | ||
| Environment risks | Natural disaster | Natural disasters cause internal/external supply chain risks, including material shortages and process and delivery delays | |
| Currency risk | Inflation and currency exchange rates | ||
| Social and cultural risks | Lack of consumer knowledge about reused/recycle components and unsustainable cultural behavior toward CE | ||
| Government policy | Lack of industry incentives for greener activities and an appropriate vision, i.e. goals, objectives, targets and indicators regarding CE adoption | ||
| Strategic risks | Technological risk | Lack of technology transfers from the inventor to a secondary user, the quality degradation of recycled products and insufficient information for tracking materials or resources in CE implementation | |
| Effectivity | Loss of effectivity damages the supply chain flow, affecting the entire discrete business activities: inbound/outbound logistics, processes, service, disposal and recycling | ||
| Vision statements | A lack of effective business monitoring and future analysis for CE processes strongly influences operational, innovation and market strategies | ||
| Marketing strategies | The failure of marketing strategies increases the supply chain's complexity and affects a product's circularity |
| Type of risks | Risk categories | Potential risks | Description |
|---|---|---|---|
| Hazard risks | Cargo thefts | Cargo theft is a challenging security issue during shipment and transportation in the supply chain, having a severe impact on operational and financial status; the compliance risk of an organization may affect the future work of CE industries | |
| Safety measures | Violating the safety measures in production operations affects overall process effectiveness | ||
| Financial risks | Investment risk | Lack of upfront cost invested in CE, insufficient source of funds and potentially reduced profits affect the organization’s financial status, leading to layoffs and lockdowns, which may affect other organizations in the circular network | |
| Product price | The higher price of environmentally friendly materials and the high price differences between recycled products and virgin products potentially escalate production costs | ||
| Controlled cash-flow | In the CE and closed-loop supply chain, a poor financial flow destroys profitability and good supply chain coordination | ||
| Operational risks | Supply risks | Logistics risk | Improper location selection of depots, sorting waste stations and containers. Inefficient collection routes |
| Capacity risk | Improper selection of size, type and capacity of the transport fleet | ||
| Material delay | A CE reutilizes waste materials since resources between industries cause the delay (variation in the distribution time) of one company resource, which will affect the possible future outcomes and operational processes of other companies | ||
| Import delay | Potential issues from customs paperwork, port strikes and labor issues | ||
| Material quality | Lack of quality raw material procurement minimizes the value of green production and operational performance | ||
| Supplier performance | Supplier performance is considered an important area in CE, but due to multiple risks, unreliable supplier performance and financial losses also occur | ||
| Product performance | Product performance regulates timeline production, product quality and profitability in the CE for any changes in performance that lead to economic and manufacturing risk | ||
| Product service life | A CE also should focus on quality products. Low-quality products are assumed to require more repairs, renovations and upgrades; poor service creates life and quality risks | ||
| Demand risks | Customer satisfaction | Successful organizations are primarily based on customer satisfaction, but customer satisfaction is based on the value of cost spent over a quality product. If the quality value decreases, the risk value increases | |
| Forecast error | Seasonal problems, lead times, poor information, poor systems, poor communication, poor skills | ||
| Product quality | In a CE, the quality of core products determines the cost of remanufacturing and remanufactured product quality | ||
| Market risks | Lack of an appropriate mechanism for take-back, the obstacles service providers face to retain ownership of a sold product in legal terms | ||
| Process risks | Organizational risks | Poor leadership and management toward CE in the supply chain and a lack of appropriate organizational structure to implement a CE in the healthcare sector | |
| CE framework risk | Lacking successful business models and frameworks for implementing a CE; difficulties in making product disassembly operation easier and safer during the reverse chain; and biodegradable resources in circular supplies | ||
| Workers' coordination | Deviation in the progressed work will lower the expected value of specific supply-chain performances and other company performances | ||
| Environment risks | Natural disaster | Natural disasters cause internal/external supply chain risks, including material shortages and process and delivery delays | |
| Currency risk | Inflation and currency exchange rates | ||
| Social and cultural risks | Lack of consumer knowledge about reused/recycle components and unsustainable cultural behavior toward CE | ||
| Government policy | Lack of industry incentives for greener activities and an appropriate vision, i.e. goals, objectives, targets and indicators regarding CE adoption | ||
| Strategic risks | Technological risk | Lack of technology transfers from the inventor to a secondary user, the quality degradation of recycled products and insufficient information for tracking materials or resources in CE implementation | |
| Effectivity | Loss of effectivity damages the supply chain flow, affecting the entire discrete business activities: inbound/outbound logistics, processes, service, disposal and recycling | ||
| Vision statements | A lack of effective business monitoring and future analysis for CE processes strongly influences operational, innovation and market strategies | ||
| Marketing strategies | The failure of marketing strategies increases the supply chain's complexity and affects a product's circularity |
Sharing content requires targeting cookies to be enabled. Please update your cookie preferences to use this feature.