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Closed- loop supply chains - How to 'Close' the loop?

5 important questions on Closed- loop supply chains - How to 'Close' the loop?

Define the characteristics of the return flow "Repair"

- “The purpose of repair is to return used products to working order.”  Quality of repaired products is typically less than the quality of new products.

- Repairing products involves fixing and/or replacing broken parts. 
Other parts are generally not affected.

- Repairing products usually only requires limited product disassembly and reassembly.

Define the characteristics of the return flow "Refurbishing"

- “The purpose of refurbishing is to bring used products up to specified quality.” 
Quality standards are typically less rigorous than those for new products.

- Refurbishing involves disassembling used products into modules. 
All critical modules are inspected and fixed/replaced.
Approved modules are reassembled into refurbished products.

- Refurbishing can be combined with ‘technological upgrading’. 
Replacing outdated modules and parts with technologically superior ones.

Define the characteristics of the return flow "Remanufacturing"

- “The purpose of remanufacturing is to bring used products up to quality standards that are as rigorous as those for new products.”

- Remanufacturing involves completely disassembling used products: 
All modules and parts are extensively inspected. 
1. Worn-out or outdated parts and modules are replaced 
2. Repairable parts and modules are fixed and extensively tested 
3. Approved parts and modules are assembled into remanufacturing products

- Remanufacturing can also be combined with ‘technological upgrading’  Upgrading a used product to “as new” quality

Define the characteristics of the return flow "Cannibalisation"

- “The purpose of cannibalisation is to recover a limited set of reusable parts from used products or components.” 
Only a small proportion of used products is typically cannibalised.

- ‘Cannibalised’ materials are used in repair, refurbishing or remanufacturing of other products and components. 
Quality standards for cannibalised parts depends on the subsequent process in which they are being used.

- Cannibalisation involves selective disassembly of used products and inspection of potentially reusable parts. 
Parts and modules that are not reusable are typically ignored

Cannibalisation is often used in old industry like aircraft, bikes, …

Define the characteristics of the return flow "Recycling"

- “Recycling is a product recovery option that involves techniques for creating new materials from wastes.” (Ravi, 2012) 
The identity and functionality of products and components is lost.

- Recycled materials can be either used in: 
Production of original parts (if quality is high enough) 
Production of other parts

- Recycling is a material recovery process that is focused on end-of life products. 
It typically starts when used products and components are disassembled into parts.