Design of the optimized reverse supply chain model is a very important task to help enterprises save cost and gain benefits from their supply chains. Closed loop supply chains, embodying remanufacturing and reverse logistics, might be expected to an important means to enable businesses to meet the growing. The term supply chain management evolved primarily out of logistics along with a number of other disciplines such as goods brokering, insurance, transportation, and ecommerce. This is the reverse of the traditional supply chain movement of goods from vendor to customer. Clsc combines forward and reverse flow together in the supply chain. Clsc activities and reverse logistics outsourcing in global supply chain. Reverse logistics is the process of planning, implementing and controlling the. In a closed loop reverse supply chain, products or materials are often returned to the original producers. Closedloop 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. The forward logistics process creates and delivers a new product, while reverse logistics comes into play after the item has served its purpose. Introduction as a research topic, reverse logistics rl has attracted the attention of not only companies and professionals but also academia, which has been tackling this issue over the last 1520 years. Closing the loop of the life cycle of a textile and fashion product along with rl places the textile industry in a much better position with least environmental impacts and multiple. Supply chain supply chain management extended chain reverse logistics supply chain design these keywords were added by machine and not by the authors. Impact of reverse logistics on supply chain performance.
Reverse logistics capturing value in the extended supply. This attention is evident by the vast number of publications in scientific journals which have been published in recent years. Reverse logistics rl and the closed loop supply chain clsc are integral parts of the holistic waste management process. Enhancing closedloop supply chain in global supply chain. Supply chains can be confusing to newbies and experts alike. Nov 04, 2010 logistics development award 2005 wyndham cramer closed loop supply chainclosed loop supply chain consists of a forward movement at the beginning of its life cycle retrieval and reprocessing at the end of its life reverse supply chain. Closed loop supply chain management and reverse logistics a. Responding to this trend, researchers in many parts of the world have conducted numerous studies in reverse logistics and reverse supply chain, that were considered separately from the forward channel of supply chains. Elements including low carbon and environmental protection must be included in the entire logistics and supply chain to realize a complete green and low carbon. Students also shared their ideas for the final project and received comments and feedback from the instructors. Most of academic researches have been focusing on reverse supply chain structure design. On the other hand, when the reverse logistic activities are directed at maximizing the economic use of materials, that is using the same material overtime, reverse logistic is termed closed loop supply chain.
Gaps of related research is identified and future research opportunities are identified. Economic, marketing, and legislative drivers increasingly are leading companies to take back and recover their products after use. Hhtwinbreaks high end hot packs recommended for you. Closed loop systems and reverse logistics springerlink. System design for supply chain management and logistics edx. Pdf reverse logistics and closedloop supply chain of. It describes how to develop systems that extract value from end. Supply chain management clscm refers to all forward logistics in the chain like procurement of materials, production and distribution as well as. Premium hot packs case breakers series 2 player breaks duration. In an open loop reverse supply chain, products are not returned to the original producers, recovered by outsider firms gou et al. This book addresses decision making in reverse logistics, which concerns the integration of used and obsolete products back into the supply chain as valuable resources.
To manage reverse supply chain efficiently, network design is a critical issue. Open loop reverse supply chain network design sciencedirect. Based on environmental, legal, social, and economic factors, reverse logistics and closed loop supply chain issues have attracted attention among both academia and practitioners. Learn how to manage and harness the dynamics and interactions between firms and entities within a supply chain. Reverse logistics and the circular economy reverse logistics involves the collection of goods, transportation to a given location and sorting prior to remanufacturing, refurbishing, reusing or recycling or failing that, disposal. Closed loop supply chain clsc as a new logistics term had been put forward in 2003, but there has been no generally accepted definition. Some theoretical considerations are also based on conventional supply chain management. Managing closedloop supply chains simme douwe flapper. Managing inventory in reverse chains has been stressed reverse logistics is important for todays business. Creating a secondary life cycle and repeating step 1 and 2. Jun 10, 2019 reverse supply chain refers to the movement of goods from customer to vendor or at least one step backward up the supply chain. 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 and process returned. Nov 08, 2018 the closed loop supply chain clsc is comprised of two distinct cycles. Product resynthesis as a reverse logistics strategy for an optimal closed loop supply chain chinmay sane, conrad s.
It plays an important role in the process of companies aiming to transition to a circular economy. It covers a wide range of aspects, related to distribution, production and inventory management, and supply chain management. The structure of the most complex process aimed at the management of logistics flows can be designed according to two methods namely open. Jan 08, 2014 a reverse supply chain can be either a closed loop system or an open loop system. The classifications of scm are lean supply chain, agile supply chain, closed loop supply chain, reverse supply chain reverse logistics and green supply chain. In this study, reverse logistics is considered as a part of the closed loop supply chain clsc. Jan 26, 2017 a closedloop supply chain essentially combines the traditional supply chain forward logistics with reverse logistics, considering the item after its served its original purpose. Aug 18, 2014 such a holistic scheme for classification of planning tasks is necessary as the intensification of research on reverse logistics and closed.
Closed loop supply chain management and reverse logistics. Understanding the difference between reverse logistics and. Responding to this trend, researchers in many parts of the world have conducted numerous studies in reverse logistics and reverse supply chain, that were. Feb 01, 2015 based on environmental, legal, social, and economic factors, reverse logistics and closed loop supply chain issues have attracted attention among both academia and practitioners. Learn how to manage and harness the dynamics and interaction. If we consider forward and reverse supply chains simultaneously, the result network will construct a closed loop supply chain. Closedloop supply chain web resources closedloop supply chain print resources closedloop supply chain references 4 of up to 20 akcali, e. Supply chain agility is an operational strategy focused on inducing velocity and flexibility in the supply chain.
Research on reverse logistics and clscs is considerably increasing because tightly linked with industrial ecology adensod. Pdf reverse logistics and closedloop supply chain of waste. The circular economy and reverse logistics the supply chain. Keywords closed loop supply chain, reverse logistics. Closed loop supply chain clscis the design, control and operation of a system to maximize value creation over the entire life cycle of a product with dynamic recovery of value from different types and volumes of returns over time.
Green closedloop supply chain network design considering. This thesis describes the remanufacturing logistics process. Kumar, closed loop supply chain management and reverse logistics a. The greatest benefits are derived by extending the focus as far as possible upstream towards the raw materials, downstream towards the consumer and then back again as the product and wastes are recycled. Blumberg, who has established himself as an authority on closed loop supply chain management, says that the typical reverse logistics operation experiences five very unique and. Thus there is a need to integrate upstream and downstream viz forward and reverse logistics called closed loop supply chain.
Recycling is the process for extracting recyclable material from used products or components including collecting, shredding, sorting and processing material for reuse in new product when original product or component lost their identity or functionality khor. Keywords closed loop supply chain, reverse logistics, marketing, consumer behaviour 1. Introduction to management of reverse logistics rl and closed loop supply chain clsc processes provides an overall treatment of clsc and rl, a qualitative and quantitative presentation of the size and dimensions of the overall market and industry, and a look at future trends. Learn how leading supply chains are designed, what makes them competitive and how to use the scor model for analysis to increase your businesss roi. What is the difference between close loop supply chain and. Recycling is the process for extracting recyclable material from used products or components including collecting, shredding, sorting and processing material for reuse in. Reverse supply chain is an umbrella term for a number of models, all of which are built to carry out five key processes. This chapter distinguishes the concepts of reverse flows, reverse logistics and reverse supply chain, drawing from specialist scientific literature on the subject. The closed loop supply chain also include the following factors such as acquisition of products, reverse logistics, testing, sorting, disposition and refurbish process. Based on environmental, legal, social, and economic factors, reverse logistics and closedloop supply chain issues have attracted attention among both academia and practitioners. Closedloop supply chain with remanufacturing petra christian. The popularity of these fields of research has led to the evolution of a vast number of publications in the literature. Use these tips and resources to learn more about supply chains and logistics, and why theyre so important to every business. When items are transported either domestically or internationally the delivery must be acco.
One of the important endoflife eol products considered in the rlclsc is waste electrical and electronic equipment. In supporting environmental sustainability, managing product returns has become a very important and challenging issue. The distinction between reverse logistics management and closed loop supply chain management refers to the strategic design intentions that. This paper argues that the closed loop supply chain is compared with the traditional supply chain, mainly refers to the entire life cycle of the product, taking into account the forward and reverse supply.
Closed loop supply chain management and reverse logistics a literature 157 3. Reverse logistics is a set of activities that includes collection, inspection, sorting, disassembly, reworkingrecycling, and disposal of used productsproduct returns. Understand your logistics and transportation documents. Elements including low carbon and environmental protection must be included in the entire logistics and supply chain to. Transport documents include the freight bill, the bill of lading, and the fob terms of sale. Pdf today, the task of developing reverse logistics and closed loop supply chains in both developed and developing industries is accepted. Therefore, closed loop supply chains have traditional forward supply chain activities and a set of additional activities required for the reverse supply chain. The circular economy and reverse logistics the supply. Oct 15, 2020 closed loop supply chain clsc, especially the reverse logistics system with the thirdparty reverse logistics providers 3prlp is very important for materials return, remanufacturing, repair. The remanufacturing reverse logistics management based on. An annotated bibliography of models and solution approaches.
The truth is supply chain management can be traced back all the way to. An introduction to creating a closedloop supply chain. Products are used, recovered, repaired and used as input to more products and not disposed of as waste. This process is experimental and the keywords may be updated as the learning algorithm improves.
The arising product flows pose novel challenges for supply chain management. Whereas, reverse logistics is for all operations related to the reuse of products and materials. Introduction to management of reverse logistics and closed. Pdf closed loop supply chain management and reverse. Jan 01, 2014 the papers were identified through a searching procedure carried out by using keywords such as closed loop supply chain, reverse supply chain, reverse logistics, product recovery management, remanufacturing, and marketing. To make rational decisions about the structure of a reverse supply chain, its best to divide the chain into its five key components and analyze options, costs, and benefits for each. Reverse logistics concerns the integration of used and obsolete products back into the supply chain as valuable resources. 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. 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. Detc2012587 product resynthesis as a reverse logistics.
Below, youll find a definition and brief explanation of this business concep. Reverse logistics quantitative models for closedloop. Reverse logistics is the process of planning, implementing and controlling the efficient and effective inbound flow and storage. Returning an electric motor from a commercial supply house back to the manufacturer because of a packaging defect is an example of reverse logistics that doesnt involve the end user.
The critical factors for successful closedloop supply chains. The supply chain team is focused on achieving greater mission impact by engaging business partners, customers and suppliers to ensure acs staff members receive the best, most efficient products and services at the best terms at the right ti. This process also distribution includes and marketing. The integration of the forward manufacturing and the reverse remanufacturing supply chains together forms the basics of a clsc. Therefore, reverse logistics, closed loop supply chain, green logistics can be considered to be the same concept. Reverse logistics, or green logistics, is growing in popularity as the better option between the two. Smart management of closed loop supply chains means profitable recovery of value from these items products, functional components, materials or packaging. Reverse supply chain reverse supply chain refers to the movement of goods from customer to vendor.
Syddansk universitet reverse logistics and closedloop. Student discussed two casestudies and learned about reverse logistics and closed loop supply chain. Ba in supply chain management reverse logistics management american public university system. The remanufacturing reverse logistics management based. Lean supply chain is a properly designed process in which all the supply chain functions and activities are systematically executed. The article explains the definition of closed loop supply chain and remanufacturing supply chain. Closed loop systems thinking and reverse logistics rl are some of the practical solutions which can help the textile and fashion industry to tackle this threat.
At every level of this method of supply chain management, advanced shipping notices will assist the information as the products flow. A closed loop supply chain system with energy, transportation and waste disposal costs w. The circular economy is a system which regenerates itself in a closed loop. The concerns are delayed deliveries, delay in procuring goods, unexpected transit halts and shortage of manpower youre reading entrepreneur india, an international franchise of entrepreneur media. 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 and process returned used or unused products andor parts of products in order to ensure a socioeconomically and ecologically sustainable recovery. Closedloop supply chain stability under different production. The distinction between reverse logistics management and closed loop supply chain management refers to the strategic design intentions that lead to the design of reverse flows and the last targeting of the designed supply chain architecture. 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.
This chapter explains the overview of closed loop supply chain clsc. Closed loop supply chain clsc refers to the forward and reverse supply chain activities for the entire life cycle of the products. Abstract based on environmental, legal, social, and economic factors. Effect of the pandemic on logistics and supply chain. Economic environmental social integration of forward and reverse logistics the supply chain considers the interactions between a business and its customers and suppliers. You may have heard about the importance of good supply chain management scm, especially for a multinational firm. Francina nishandhi department of mathematics, holy cross college autonomous, trichirappalli620002 abstract. Closed loop supply chain clsc, especially the reverse logistics system with the thirdparty reverse logistics providers 3prlp is very important for materials return, remanufacturing, repair. Closed loop supply chain management clscm involves forward logistics in the chain material procurement, production, and distribution, as well as reverse logistics to collect and process.
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