Creating Value from Returns

Transcription

1 The Design of Closed Loop Supply Chains Creating Value from Returns By Harold Krikke CentER Applied Research Economics Faculty Tilburg University Reverse Logistics Trends, Inc.

2 2 Table of Contents ABSTRACT 1. Introduction and Scope Lessons learned # What: Defining Closed Loop Supply Chains Lesson learned #2 3. Why: The Value Perspective Lesson learned #3. 4. Fisher for Closed Loop Supply Chains Lessons learned #4. 5. Product Modularity and Other Design Issues Lessons learned #5. 6. How: Product Data Management and Data Logging Lesson learned #6. 7. Supply Chain Information Systems A. E-marketplaces B. ERP Lesson learned #7. 8. How: LCA and LCC Lessons learned #8. 9. The Four Step Plan 1. Phase 1: Awareness. 2. Phase 2. Streamline 3. Phase 3: Setting the closed loop supply chains. 4. Phase 4: Adapting the business model. References and Further Reading

3 3 Creating Value From Returns The Design of Closed Loop Supply Chains ABSTRACT Increasing attention is being given to the Reverse Logistics and Closed Loop Supply Chain market and business models over the last decade. This is due in part to the recognition of increasing value of the products and technology created in the field at the end of general direct supply chains and the impact of Green Laws, particularly in Europe. Based on primary market research and extensive analysis and evaluation a quantitative representation of the Reverse Logistics / Closed Loop Supply Chain (RL/CLSC) market has been developed and forecast. Different types of reverse logistics and closed loop supply chain models are presented along with quantitative estimates of market activity by segment. This research provides both business oriented logisticians and academic researchers with new insight and data on this important logistics process. Number of Pages: 36 E-Copy Price: $ Hard Copy Price: $ Figures and Tables included: Figure 1: The Diverse of Closed Loop Supply Chains Summarised Figure 2: The Product Life Cycle of a Copier Figure 3: Closed Loop Supply Chain Figure 4: Value Regain Figure 5: Fisher for Closed Loop Supply Chain Table 1: Outline of Recovery Options Table 2: Summary of Business Benefits of CLSC Table 3: CSC Requirements to WMS

4 4 1. Introduction and Scope Business Logistics Management has gone through severe changes over the last few decades. Customers have become more and more demanding and increased transparency, e.g. through internet sales, is shifting the balance of power more in their favor and gives them the opportunity to actively configure the final product. The focus today is on creating value through personalized and individualized offerings to customers, while at the same time traditional requirements such as high quality and low cost remain important. The market trend to mass customization has created a variety of product options that a company must offer. Moreover, businesses are expanding into international markets, requiring the ability to manage manufacturing and distribution on a global basis. Cross company concepts, referred to as Supply Chain Management, are necessary to meet these increasing demands. Supply Chain Management is defined by CLM as the integration of key business processes from end user through original suppliers that provides products, services and information that adds value for customers and other stakeholders (Stock and Lambert, 2000). Actual realization of SCM occurs by implementing concepts, such as Efficient Consumer Response (ECR), Continuous Replenishment, Collaborative Planning, Vendor Managed Inventory and so on. Companies have spent a lot of time to designing their forward supply chain, soon they may have to pay attention to their reverse chain too (Guide and Van Wassenhove, 2002).

5 5 About the Author Dr. Harold Krikke Senior Researcher/Head CAR-OR CentER Applied Research, Faculty of Economics and administration, Tilburg University P.O. Box 90153, 5000 LE, Tilburg, The Netherlands Harold Krikke is the head of the operations research team of CentER Applied Research of Tilburg University. He and his team develop advanced planning tools for supply chain optimisation and reverse logistics. Clients of CentER Applied Research include large industrial corporations, training institutes and government bodies. Prior to this appointment he conducted a Ph.D. at Twente University (finished 1998), worked as assistant professor at Erasmus University and as a logistics consultant at Tebodin Consultants. Dr Krikke has published over 40 national and international articles and participates in international reverse logistics research networks such as REVLOG and Closed Loop Supply Chains.

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