Managing Closed-Loop Supply Chains
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Closed-Loop Supply Chains (CLSC) offer companies a unique opportunity to improve their profits whilst serving societal responsibility. The management of CLSC differs in a number of ways from managing supply chains in general. The book examines these differences and how these differences may be dealt with in practice, by offering a concrete framework, introducing the different aspects related to CLSC and their mutual relations, in a systematic logical way as well as cases clustered according to the inputs for a CLSC. The framework and especially the cases from successful companies offer the reader an invaluable help to build and improve CLSC.
Introduction Closing supply chains refers to taking care of items once they are no longer desired or can no longer be used by their user. Smart management of closed-loop supply chains means profitable recovery of value from these items (products, functional components, materials or packaging). The company closing the supply chain may be the original equipment manuf- turer (OEM), a distribution partner or a third party not involved in the f- ward distribution. In recent years, the management of closed-loop supply chains has gained importance because of increased legislation on producer respon- bility, requiring companies to take back products from customers and to organize for proper recovery and disposal. This legislation is partially due to increased awareness of environmental issues. However, smart com- nies have also understood that returned products often contain lots of value to be recovered. They manage closed-loop supply chains simply because it is a profitable business proposition.
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