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.

Inc. E-marketplaces B. What: Defining Closed Loop Supply Chains Lesson learned #2 3. 4. Phase 1: Awareness. Phase 4: Adapting the business model. . How: LCA and LCC Lessons learned #8. 3. ERP Lesson learned #7.2 _____________________________________________________________________ Table of Contents ABSTRACT 1. 7. 2. Introduction and Scope Lessons learned # 1. 4. The Four Step Plan 1. Streamline Phase 3: Setting the closed loop supply chains. References and Further Reading Copyright © 2004 Reverse Logistics Trends. 6. Phase 2. 8. Supply Chain Information Systems A. Product Modularity and Other Design Issues Lessons learned #5. 9. “Fisher” for Closed Loop Supply Chains Lessons learned #4. 2. 5. Why: The Value Perspective Lesson learned #3. How: Product Data Management and Data Logging Lesson learned #6.

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. 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.00 Hard Copy Price: $125. Number of Pages: 36 E-Copy Price: $ 99. . Inc. This research provides both business oriented logisticians and academic researchers with new insight and data on this important logistics process. Different types of reverse logistics and closed loop supply chain models are presented along with quantitative estimates of market activity by segment.00 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 Copyright © 2004 Reverse Logistics Trends. particularly in Europe. 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”.

Inc. Copyright © 2004 Reverse Logistics Trends. referred to as Supply Chain Management. e. is shifting the balance of power more in their favor and gives them the opportunity to actively configure the final product. Customers have become more and more demanding and increased transparency.4 _____________________________________________________________________ 1. are necessary to meet these increasing demands. services and information that adds value for customers and other stakeholders” (Stock and Lambert. Continuous Replenishment.g. Supply Chain Management is defined by CLM as “the integration of key business processes from end user through original suppliers that provides products. Vendor Managed Inventory and so on. . Actual realization of SCM occurs by implementing concepts. soon they may have to pay attention to their ‘reverse chain’ too (Guide and Van Wassenhove. Cross company concepts. 2002). requiring the ability to manage manufacturing and distribution on a global basis. The focus today is on creating value through personalized and individualized offerings to customers. The market trend to mass customization has created a variety of product options that a company must offer. Companies have spent a lot of time to designing their forward supply chain. while at the same time ‘traditional’ requirements such as high quality and low cost remain important. Collaborative Planning. 2000). such as Efficient Consumer Response (ECR). Introduction and Scope Business Logistics Management has gone through severe changes over the last few decades. Moreover. businesses are expanding into international markets. through internet sales.

Tilburg. training institutes and government bodies. Box 90153. Tilburg University P. worked as assistant professor at Erasmus University and as a logistics consultant at Tebodin Consultants.D. Clients of CentER Applied Research include large industrial corporations.5 _____________________________________________________________________ About the Author Dr. 5000 LE. 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. Copyright © 2004 Reverse Logistics Trends. He and his team develop advanced planning tools for supply chain optimisation and reverse logistics.O. . Harold Krikke Senior Researcher/Head CAR-OR CentER Applied Research. Inc. at Twente University (finished 1998). The Netherlands Harold Krikke is the head of the operations research team of CentER Applied Research of Tilburg University. Faculty of Economics and administration. Prior to this appointment he conducted a Ph.

com Email: info@rltinc. is a trade Reverse Logistics Trends. Inc. The association makes available to OEMs business and technology intelligence to strengthen the decision-making process for outsourcing their customer support services to 3PSPs. CA 94538 Office: 510 792 2048 Fax: 510 796 6689 http://www. Inc. .6 _____________________________________________________________________ Reverse Logistics Trends. providing conferences and trade shows while commissioning research to benefit our membership. with focus on reporting industry news.com association focused on supporting third party service providers (3PSP’s) whom OEM’s outsource to. Copyright © 2004 Reverse Logistics Trends. We support the total Reverse Logistics Industry. Suite 390 39510 Paseo Padre Pkwy Fremont. Inc.rltinc.

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