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Closed- loop supply chains - Concept of Closed- loop Supply Chains

Q: Explain the three different views on CLSCs.

Activity-based view  - Focus on individual tasks within key activities: Technical issues  Operational issues Process flow perspective  - A distinction is made between three sub-processes that each combine several key activities:  1. Front End (product returns management)  2. Engine (remanufacturing operational issues)  3. Back End (market development for remanufacturing products) Business perspective  - Recognition of the fact that only when the three subprocesses are managed in a coordinated fashion value can be created  - All bottlenecks should be removed and the subprocesses should be smoothly integrated

4 important questions on Closed- loop supply chains - Concept of Closed- loop Supply Chains

Describe a traditional Supply Chain.

A supply chain is traditionally viewed as a set of ‘forward’ facing flows: Unidirectional flow of materials from suppliers to manufacturers to distributors to retailers and finally to (end) consumers.

Academics and practitioners are increasingly focusing on ‘return’ flows in supply chains in addition to the ‘forward’ flows. Which (6) types of reverse flows can be present in a typical supply chain?

- (Direct) Reuse/resale
- Repair
- Refurbishing
- Remanufacturing
- Cannibalisation
- Recyling

Why should organizations close the loop?

- Economic pressure: Fluctuating prices of key virgin resources --> Assembléon & Dell
- Legal pressure: Container-deposit legislation
- Environmental pressure: Reducing or eliminating waste

Explain the three different views on CLSCs.

Activity-based view 
- Focus on individual tasks within key activities:
Technical issues  Operational issues

Process flow perspective 
- A distinction is made between three sub-processes that each combine several key activities: 
1. Front End (product returns management) 
2. Engine (remanufacturing operational issues) 
3. Back End (market development for remanufacturing products)

Business perspective 
- Recognition of the fact that only when the three subprocesses are managed in a coordinated fashion value can be created 
- All bottlenecks should be removed and the subprocesses should be smoothly integrated