PurposeSustainability issues on economic, environmental and social perspectives have drawn attention of environmentalists, ecologists and governments. In this context, circular economy provides an opportunity to transform waste into resources, reduction of production and consumption activities; and reduction of carbon footprints, all at the same time. The purpose of this paper is to develop a strategic framework for measuring circular supply chain management.Design/methodology/approachA grounded theory approach has been used to develop the strategic framework for circular supply chain management.FindingsThis study provides an integrative framework for studying, designing and evaluating circular supply chain management performance matrix.Research limitations/implicationsA conceptual strategic framework has been proposed to measure the performance of circular supply chain management. Further empirical studies may be carried out to validate the framework.Practical implicationsThe conceptual strategic framework provides key indicators for reducing material consumption, reducing waste, reducing carbon footprint and recycling opportunities throughout the supply chain. These may be utilized by practitioners for gaining competitive advantage.Originality/valueThis paper provides insights into development of circular supply chains that provides opportunities for cost reduction and securing competitive advantage for a business in the long run.