Economic-financial analysis procedure: Implementation of inter-organizational circular systems

Circular Economy is widely discussed in the literature, however, the implementation of these systems in the real world still faces significant challenges. Namely, the collaboration of managers from different companies with diverse expectations and values to operate jointly in reverse logistics systems and waste revalorization is not trivial. The aim of this research is to develop a procedure for economic-financial analysis and financial risk assessment to assist members of emerging inter-organizational circular systems in evaluating whether the system will bring mutual benefits throughout the different phases of the project. The Design Science Research methodology was used to develop a tool for evaluating financial and risk indicators with a "win-win" perspective. A case study was conducted in a Brazilian multinational involving the implementation of a pilot circular system for footwear rubber waste. The study provided practical and theoretical contributions by diagnosing the economic-financial situation of the circular system. Moreover, we adapted the concepts of economic-financial feasibility analysis to consider interdependence among links in the circular chain. The tool enables sensitivity analysis and scenario assessments, and a preliminary Excel dashboard was developed for the client company use.