Managing Closed-Loop Supply Chains

Transcription

1 1. Topic 2. Original reference Managing Closed-Loop Supply Chains Book: Flapper, Simme Douwe P., Nunen, Jo A.E.E. & Van Wassenhove, Luk N. (Eds.) (2005). Managing Closed-Loop Supply Chains. Springer, Berlin, Heidelberg. 3. Keywords Closed-Loop Supply Chains, Reverse Logistics, Product Returns 4. Description of the problem approached The increasing number of returns of products has become an important topic for many companies. Closed-Loop Supply Chains may offer companies a unique opportunity to improve their profits on the one hand and to serve social responsibility on the other hand. This book presents a framework for closed-loop supply chain analysis, which has two major components. The first component is a general picture of reverse flows with different types of returns: commercial returns, repair and replacement returns, endof-use returns, end-of-life returns, production return flows and distribution returns. The second component in the framework is a flow diagram for analysis. The logical sequence of the diagram starts with identifying the business drivers followed by an analysis of the technical aspects, the organizational implications, the planning and control issues, the information system needs, the environmental impacts and the economic impacts. 5. Methods and Tools 6. Results The framework for closed-loop supply chain analysis is used to cluster and describe real world closed-loop supply chain practices and industrial cases, which illustrate how a number of successful companies engaged in closing some of their supply chains. The 16 cases provide insight into the future trend and development of closed-loop supply chains. It appears that many smart companies already take calculated risks and benefit from temporary competitive advantages through pioneering innovative closed-loop supply chain solutions. For example, the Oce and NEC-CI cases revealed 1

2 innovative ways of monitoring product use, and taking business advantage of this information. Other cases focused on smart use of tracking and tracing technology and integrated information systems in managing flows of products or distribution items (e.g. the Heineken and Wehkamp cases). Still other cases dealt with collaboration initiatives and personnel incentive schemes to induce appropriate behaviors in closed loop supply chains. 2

3 B Information for the End Users and Links 7.1 What s new? 7.2 What s useful? 7.3 Where can be used 8. Tools (technology) for the implementation of results. Many different types of closed-loop supply chains exist in practice. The classification of closed-loop supply chains used in this book follows the different phases in the lifecycle of a product: the production phase, the distribution phase, the use phase, and the end-of-life phase. Following each of these phases, companies can decide for which phase or phases the corresponding supply chain may possibly close. However, it is worthwhile to notice that each of these phases has its own specific possibilities and requirements, depending on the type of product, the processes involved and the size of the flows. The framework for closed-loop supply chain analysis has been found particularly useful. It does not only provide an essential underlying structure for organizing the different chapters of the book for internal consistency and flow as the authors explained, but also allows real-life business cases to fit immediately into the general framework for further reverse and closed loop supply chain analysis. The detailed observation and analysis obtained from the case companies provide insights into future developments in managing closed-loop supply chains. The theory of the framework together with real-life business case studies give managers a good understanding of the rich variety of managerial aspects of closed-loop supply chains across many industries and functional forward and reverse supply chains operations. The book has enriched 16 business case studies directly linked to the different managerial aspects of closed-loop supply chains. For each case study, it provides a detailed and specific analysis focused on some or all of managerial aspects in a logical sequence according to the flow diagram (figure 2). However, particular attention is paid to the underlying business drivers and managerial aspects. The book took a business perspective on the future of closed-loop supply chains. It also discussed opportunities and challenges of profitably closing the loop in supply chains from the point of view of the OEM. Besides taking the business perspective in this book, the authors suggest 3

4 9. Links to the main CODESNET issues (OS-OA- ISEE) 10. Notes that many other perspectives are equally relevant (e.g. government or policy maker, the consumer, society at large, and other partners in the supply chain including banks and investors). The technology used to implement the results varies from case to case. Smart sensors keeping track of the product s history allow more reliable and faster estimation of product quality and condition. RFID or other track and trace facilities allow a view from a distance and encourage remote monitoring. A growing set of planning and control techniques and software are being developed for better closed-loop supply chain management. None 4

5 C - Identification of the paper/report 11. Identification Card Network Design - Organization Production - Service Management Process Logistic Network Development - Innovation Policy Supply Chain 25% 25% 25% 25% Structure Industrial District 5

6 D. Conceptual scheme of the paper contents: DESNET Committee (DC) Chair DESNET Agent Figure 1: Closed-loops related to different phases in the life of a product Physical flow from and to natural environment Other physical flow Production Distribution Use Processing Collection 6

7 D (continue). Detailed description of the main paper result: DESNET Committee (DC) Chair Figure 2: The different managerial aspects of closed-loop supply chains Business driver Technical aspects Organizational aspects Planning and control aspects Information aspects Environmental aspects Business-economic aspects 7