Identifying Challenges Regarding Sustainability and Circularity in Foundries : A multiple-case study of OEMs and SMEs in the Swedish foundry industry

Sammanfattning: Purpose: The purpose of the thesis is to identify Swedish foundries’ challenges regarding circularity and sustainability demands and explore how SME foundries can be more sustainable and circular. Method: The research approach used in this study is an exploratory multiple-case study. The research questions are answered by using qualitative data through interviews and observations as data collection methods. Findings: The study’s findings present many challenges for Swedish foundries. The main challenges identified are fluctuations in demand, Just-in-Time, extra transports, and the availability of suitable supply chain partners. The challenge of demand fluctuations for SME foundries resulted in a recommendation on how SMEs can face the challenge. The recommendation aims to reallocate capacity by warehousing, followed by increasing communication in the supply chain. The study concludes that Swedish foundries are far from achieving circular supply chains but strive for sustainable foundries. Practical Implications: Organizations could use this thesis as a point of reference to compare and reflect on their foundry operations. Since SMEs are targeted for facing challenges in the industry, practical implications could provide a recommendation for organizations and managers in the foundry industry to collaborate more efficiently with OEMs. Theoretical Implications: This study contributes to the existing knowledge with a new perspective as the challenges connected to sustainability and circularity have been a gap for academia in the foundry industry. Delimitations: This thesis delimitates within the supply chain of one SME and two OEMs in the Swedish foundry industry. The SME’s role in the supply chain is a supplier of casted components, while the OEMs are both a producer of castings and a customer of components. The areas within the supply chain studied are castings, materials, logistics, production, and sustainability & circularity.