Circular Logistics Engineering: Minimizing Waste and Carbon Footprint

Abstract

The shift from linear to circular economic systems has created new needs for the design of logistics systems, especially for minimising waste and reducing the carbon footprint. This review discusses how logistics engineering can incorporate the principles of a circular economy to support the realisation of more resource-efficient, low-carbon, and recovery-oriented supply systems. The article begins by elucidating the theoretical principles of circular logistics by contrasting it with traditional, green, reverse, and closed-loop logistics, and by emphasising the necessity of considering logistics as a multi-directional system to retain value rather than distributing products in a one-way manner. It subsequently develops key engineering advances, including sustainable transport, smart warehousing, reverse logistics infrastructure, reusable packaging, and digital technologies such as IoT, AI, and digital twins. The review also examines the optimisation models and decision-support strategies applied to balance cost, service, and waste reduction and carbon mitigation under uncertainty. Moreover, it assesses the barriers to implementation in terms of infrastructure, economics, organisational capacity, regulation and sector-specific conditions of operation. The article posits that the originality of logistics driven by the circular economy lies in its comprehensive approach to waste and carbon goals through engineering design, rather than distinct green interventions. The review concludes that the idea of circular logistics can become a vital facilitator of sustainable industrial change, but it will require the assistance of lifecycle-based assessment, integrated infrastructure, and context-specific implementation strategies.