Reviewed 382 scientific papers on reverse logistics and closed loop supply chain. The most accepted definition for sustainable supply chain management sscm would be one where all consumer products are created, used, and recycled or disposed of in the closed loop method. Closed loop supply chains clsc are supply chain networks that include the returns processes and the manufacturer has the intent of capturing additional value and further integrating all supplychain activities guide et al. New developments to improve the sustainability of business practices mark e. Sc1x supply chain and logistics fundamentals lesson. In its latest sustainability report apple said it was aiming for a closed loop supply chain that would eliminate the need for mining, though it has set no date for achieving this. Closed loop supply chain management clscm refers to all forward logistics in the chain. A study of the closedloop supply chain coordination on waste. Closed loop supply chain management and reverse logistics. When planning and operating a supply chain, not only the technical part has to be considered but also how to achieve efficiency and effectiveness of the supply chain, the regulatory setting, value proposition, profitability and supply chain design tummala, phillips, johnson, 2006. Remanufacturing process is subject to random yield. What is the difference between close loop supply chain and. Case study research in supply chains an outline and. More specifically, among all the activities that are included within the clsc area, the focus of this.
The concept of closed loop supply chain management is a very popular direction of research and companies activities. Giannoccaro researched the coordination of threesechelon supply. Bhatia, manjot singh, jakhar, suresh kumar, mangla, sachin kumar, gangwani, kishore kumar. This paper integrates the internet service platform with bigdata marketing into the dynamic closed loop supply chain system as an independent game subject. Li ebusiness division, management school, university of liverpool, uk abstract e supply chain management in a manufacturing context, is a series of internetenabled valueadding activities to guarantee products created by a manufacturing process can eventually meet customer requirements and realize returns on. Vice president and group director, supply chain and global supply management practices. Consumer environmental awareness and coordination in. Pdf specifics of closed loop supply chain management in.
A closed loop supply chain is designed and managed in such a way as to combine both forward and reverse supply chains. The concept of an scf carbon dioxide cleaning apparatus is illustrated in fig. Closed loop supply chain management clscm refers to all forward logistics in the chain like procurement of materials, production and distribution as well as the reverse logistics to collect. The dynamics of a closedloop supply chain is considered. Critical factors to environment management in a closed. In the management of the closed loop supply chain, the recycling of waste products and decisionmaking on pricing often directly affect the supply and demand of products and the operation. The leadtime paradox can exist in bullwhip, capacity cost and inventory cost. Research on collaborative management strategies of closed. W hile conventional supply chains seek to efficiently move products in a linear fashion from raw materials to end consumers, a circular or closedloop supply chain is one that is also dependent on feeding used products back as raw materials. May 28, 2014 dells supply chain brings closed loop recycling advantage. The structure of the most complex process aimed at the management of logistics flows can be designed according to two methods namely open. Find materials for this course in the pages linked along the left.
In the following sections we document a number of diverse products that are presently being remanufactured and describe their supply chains. Jan 31, 2017 many leading companies are already using closed loop approaches and achieving cost savings from these efforts. In the supply chain, the collector collects endoflife products. The major difference between closed loop supply chains and traditional forward supply chains is for a forward supply chain the customer is at the end of the processes, and for a closed loop supply chain there is value to be recovered from the customer or enduser. A closedloop supply chain essentially combines the traditional supply chain forward logistics with reverse logistics, considering the item after its served its original purpose. This is thanks largely to a shift towards closed loop supply chains. Lecture notes logistics and supply chain management. Apple aims for closedloop supply chain supply management.
Why you should aim for a closedloop supply chain articles. Introduction to management of reverse logistics and closed. Closed loop supply chains can help companies reduce waste and maximize resources, which is why a growing number of businesses are combining traditional supply chains forward. Pricing decisions in a competitive closedloop supply. Critical factors to environment management in a closed loop supply chain author. Finally, we discuss the management of each of the different supply chain. Smart management of closed loop supply chains means profitable recovery of value from these items products, functional components, materials or packaging. This chapter provides an overview of concepts within the field of closed loop supply chain management. Contract research and coordination is another focus of closed loop supply chain. Inventory management in a consumer electronics closedloop. It is associated with efforts like managing production residues byproducts. To delineate typologies that capture the relationship between closed.
Aligned with many closed loop supply chains, this paper assumes that the third. Inventory management in a consumer electronics closedloop supply chain. In this paper, critical factors for the implementation of closed loop supply chain practices are identified and analyzed in the indian automotive sector. Finally, we discuss the management of each of the different supply chain systems, and identify the key research. Closed loop supply chain management clscm supply chain is a set of activities that includes purchasing, manufacturing, logistics, distribution, marketing, that perform the function of delivering. In the right quantities to the right locations at the right time in order to minimize total system cost. This subarea of supply chain management has gained researchers and practitioners attention over the last 15 years to become a fully recognized subdiscipline of the operations management field. This chapter explains the overview of closed loop supply chain clsc. Closed loop supply chains clsc are supply chain networks that include the returns processes and the manufacturer has the intent of capturing additional value and. Managing closedloop supply chains simme douwe flapper. Inventory management in a closedloop supply chain with. The recycling of waste products can sharply save manufacturing cost and improve the economic efficiency and corporatereputation. Mar 22, 2017 before we understand the difference, let us understand the two systems. This thesis deals with closed loop supply chain management, in particular for endoflife automobiles.
Emphasizing the economics of scm, closedloop supply chain management is the design. However, in a closed loop supply chain, the returns processes are also considered, with the intent of capturing additional value and providing a more complete integration of all supply chain activities. It also has a great effect on the environment and resources protection. Closed loop supply chain clsc focuses on acquiring the coresproduct returns from consumers, recovering their residual value, and remarketing them. Concern for the environment and customers demand for recycling have led to producer responsibility legislation, where also.
Materials are mined, manufactured as products and often end up in landfills after use. Case study research in supply chains an outline and three examples stefan seuring. A unified theory of the dynamics of closedloop supply chains. Traditional supply chains are linear, said the report. Closedloop supply chain description the full technique overview is available for free.
Based on environmental, legal, social, and economic factors, reverse logistics and closed loop. Closed loop supply chain management is the design, control and operation of a system to maximize. The term who refers to the players involved in the process and their different responsibilities in the management of the flows along a supply chain. Regarding the recent definition of a closed loop supply chain, we should mention the elevated description of clsc based on current requirements found in guide and van wassenhove 2009. First, using some qualitative frameworks we categorize and characterize the many different. Kumar evaluates the relative success of these strategies in the long term 25. Therefore, closed loop supply chains have traditional forward supply chain activities and a set of additional activities required for the reverse supply chain. Closed loop supply chain management clscm supply chain is a set of activities that includes purchasing, manufacturing, logistics, distribution, marketing, that perform the function of delivering value to end customer turan paksoy, 2011. Blanc 10 claimed that closedloop supply chain management is defined as the integration of business processes that creates additional value for all original and new players in the supply chain. Pdf specifics od closed loop supply chain management in. Chandrasekaran, supply chain management, oxford university press, 2010 satish k. Demand and return processes are assumed as a var1 process. Emphasizing the economics of scm, closed loop supply chain management is the design, control, and operation of a system to maximize value creation over the entire life cycle of a product with. Closed loop supply chain network design under uncertain.
This paper considers a closed loop supply chain with the manufacturer as the stackelberg leader. Competition in closedloop supply chains springerlink. Issues in supply chain strategy pdf courtesy of don rosenfield. Strategic closedloop supply chain management request pdf. Closedloop supply chains supply chain integration modeling. Supply chain management scm has become an important competitive approach for organizations in this environment. Lecture notes in economics and mathematical systems, vol 586. In a forward loop supply chain, the customer is typically the end of the process. Introduction to management of reverse logistics and closed loop supply chain processes crc press book increasing legislative and environmental pressure requires businesses to become more responsive to products that either have been returned or that are at the end of their useful lives. What is closed loop supply chain management igi global. This is a brief introductory tutorial that explains the methodologies applied in the rapidly. Extant literature on core acquisition management suggests that researchers have not considered behavioral aspect of consumers. Cocacola european partners, for example, is collaborating with recyclers, packaging manufacturers and other firms across the supply chain to cut costs and materials used. Dells supply chain brings closedloop recycling advantage.
The bestinclass are 59% more likely to manage outside suppliers and partners in the design process. Supply chain management deals with the management of materials, information, and financial flows in a network consisting of suppliers, manufacturers, distributors, and customers. An introduction to creating a closedloop supply chain. With the increasing importance of the efficient purchasing function, supplier selection decisions havebecome more strategic in supply chain management. A three level framework for closedloop supply chain. Closed loop supply chain activities such as remanufacturing, recycling, dismantling for spare parts, and reverse logistics have helped many companies tap into new revenue streams by finding secondary markets for their products, all while reducing their overall carbon footprint. Unlike in the closed loop or reverse supply chain, here the products are either recovered by other parties willing and able to reuse the materials or products, or are disposed in landfills andel, 1997. Gaps of related research is identified and future research opportunities are identified. Closed loop supply chain network design under uncertain pricesensitive demand and return. Supply chain management 1 missionaries of charitys gandhiji prem nivas leprosy centre near kolkata, india, where leprosy patients receive treatment and learn how to live and work with their disabilities. Enhancing closedloop supply chain in global supply chain. Supply chain management is concerned with the efficient integration of suppliers, factories, warehouses and stores so that merchandise is produced and distributed. We establish an optimal liner policy for a closedloop supply chain.
In this study, we consider a threeechelon closed loop supply chain consisting of a manufacturer, a collector, and two duopolistic recyclers. Smart management of closed loop supply chains means profitable. Unlike in the closed loop or reverse supply chain, here the products are either. After each case, we summarize and discuss the distinguishing features of the supply chains. Endoflife product management, as part of life cycle management, will change in the coming years. 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. Closed loop supply chain management and reverse logistics a. Research on closed loop supply chain with reference price. In this paper, a closed loop supply chain network design problem is developed.
The model also results in a fact that with the implication of the extended supply chain, a. Pdf closed loop supply chain management and reverse. Supply chain integration modeling, optimization, and applications sameer kumar, series advisor university of st. Apr 21, 2017 in its latest sustainability report apple said it was aiming for a closedloop supply chain that would eliminate the need for mining, though it has set no date for achieving this. The manufacturer faces three different reverse channels, i. Closed loop supply chain is when you recover a product from a customer in exchange for value and recycle the product for profit and gain by putting it through quality check an. In the open loop supply chain, which is the traditional supply chain system, products do not return to the original producer.
Overview of supply chain strengthening supply chain sustainability in order to provide customers with a timely, stable supply of better products and services, it is necessary to put significant effort into developing and optimizing supply. A forward supply chain is all processes involved in the creation of new products from raw materials through to their distribution to consumers. Inventory management, closed loop supply chains, reverse logistics. Clsc activities and reverse logistics outsourcing in global supply chain. In the proposed model, expected returned products is estimated as a function of return price and if the amount of returned products is less than the expected amount, decision. Focus on sustainable development and green economics has. Closed loop supply chain models with product remanufacturing r. From conceptual to an action oriented framework on core acquisition journal of cleaner production, vol. Supply chain management i about the tutorial supply chain management can be defined as the management of flow of products and services, which begins from the origin of products and ends with the products consumption at the enduser. Closedloop supply chain models with product remanufacturing. The concept of closedloop supply chain management is a very popular direction of research and companies activities. Introduction to supply chains what is supply chain management. Introduction many industries have experienced increasing globalization and a shifting focus to competition among networks of companies.