Holistic Framework for Digital Transformation in Circular Supply Chain Management: Leveraging AI, IoT, and Stakeholder-Policy Synergy—Empirical Evidence from Multinational Enterprises

Authors

  • Carlos Andrés González Muñoz

    Department of Industrial Engineering, Pontifical Catholic University of Chile (PUC-Chile), Santiago, Chile
  • María José Fuentes López

    Department of Industrial Engineering, Pontifical Catholic University of Chile (PUC-Chile), Santiago, Chile

Keywords:

Digital Transformation; Sustainable Supply Chain Management; AI; IoT; Circular Economy; Carbon Footprint Reduction; Stakeholder Engagement; Policy Support

Abstract

Powered by AI and IoT, digital transformation is a critical enabler of sustainable supply chain management (SSCM). This paper develops a holistic framework integrating AI, IoT, and circular economy practices to address supply chain sustainability challenges (resource inefficiency, carbon emissions, waste).  Based on a 2022–2025 review of 180+ academic articles/industry reports, it identifies three core pillars of digital-driven SSCM: real-time data visibility, predictive optimization, and circular value loop integration. Empirical analysis of 12 cross-sector cases (manufacturing: Siemens, Toyota; retail: Walmart, Alibaba; logistics: DHL, Maersk) validates the framework—enhancing resource efficiency by 28–42%, cutting carbon footprints by 19–35%, and boosting circular material reuse by 31–50%. It also explores the role of stakeholder engagement (corporate responsibility core) and policy support (e.g., EU’s Digital Product Passport, China’s “Dual Carbon” policy). The study bridges digital transformation and circular economy literatures, offers manager guidelines, and notes limitations (focus on large enterprises) with future research needed for SMEs/emerging economies.

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Issue

Vol. 1 No. 1 (December 2025)

Section

Articles