Leveraging Digital Transformation to Enhance Circular Supply Chain Performance: A Systematic Review

Increased demands to lower carbon emissions and conserve natural resources have heightened attention on circular supply chains (CSCs). This article aims to examine how digitalization improves the effectiveness of CSCs. It systematically employs the scientific procedures and rationales for systematic literature reviews (SPAR 4–SLR) and the POWER frameworks. Following the framework protocol, 60 peer-reviewed articles from the Scopus database were included for a detailed review. Four overarching themes emerged: (a) the use of digital technologies such as IoT, blockchain, AI and big data to optimize CSC processes; (b) key industries adopting circular economy (CE) principles; (c) links between CSC innovations and some Sustainable Development Goals (SDGs); and (d) measurable impacts on operational, environmental and economic performance. Notably, digital technologies enhance traceability, resource efficiency and stakeholder collaboration within CSCs. Industries such as manufacturing, electronics and motor vehicles lead in practising CE. Theoretically, this contributes systematic insights into how digital transformation influences CSC performance. Practically, it provides policymakers and practitioners with insights to develop digital strategies aligned with sustainability objectives to advance the SDGs.