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circularity management and technology
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CIRCULARITY MANAGEMENT & TECHNOLOGYSUPPLY CHAIN (MANAGEMENT)
In direction of the customer: downstream
In direction of the supplier: upstream
CONVENTIONAL SUPPLY CHAIN
- Classic traditional supply chain approach
- Forward supply chain. Forward supply chain: customers do return products
Reverse supply chain
Returns management is common for online shopping. You can just easy return
something.
Main types of returns
- Commercial returns: the overstock of non-stock products (seasonal effects),
linked to the sales process. The system must be responsive: the supply chain
has to react quickly on a return
- Reusable items: efficient supply chain is needed. The main driver is cost. The
system must be efficient.
- End-of-life returns: empty battery. Often taken back from the market to avoid
negative externalities. The system must be controlled
- End-of-use returns: product replacement, end of lease. Responsive system
REVERSE SUPPLY CHAINS
, • Forward supply chain: customers typically at the end of the process
• Reverse supply chain:
- integration of return flows from products into the existing production network
- more than „just“ returns management!
- marketing and logistics, cross-functional impact
“The process of planning, implementing, and
controlling the efficient, cost-effective flow of raw
materials, in-process inventory, finished goods and
related information from the point of consumption to
the point of origin for the purpose of recapturing
value or proper disposal.” (Rogers and Tibben-
Lembke, 1999, p. 2)
Reverse logistics is not the same as green logistics
Reverse logistics: the whole process of the supply chain but from the point of
consumption back to the origin. With the goal of cost effectiveness in mind
Extended producer responsibility: the producer is sometimes verantwoordelijk to
collect the end of life products
- Product returns with focus on end-of-use (EOU), end-of-life (EOL)
5 key business processes
- Product acquisition
- Reverse logistics (+testing and inspection)
- Sorting and disposition. Is their sufficient quantity and how is the quality:
steady flow of returned product
- Recovery
- Redistribution: is there a market for the end of use or end of life products.
Additional marketing efforts, new markets, alternative chains
Front end: directly visible in the return management
Back end: in the back of the supply chain, you have to think about these things. (I
have the phones back but what know?)
Engine: all the things that make remanufacturing possible
CLOSED-LOOP SUPPLY CHAIN APPROACH
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