In the following sections we document a number of diverse products that are presently being remanufactured and describe their supply chains. Clsc generally incorporates activities observed in both the traditional forward supply chain and in the reverse supply chain guide et al. Jan 30, 2017 various businesses have begun implementing sustainability initiatives as a way to reduce waste, but also gain profit from both the forward and reverse supply chains, business 2 community wrote last week. Supply chain integration modeling, optimization, and applications sameer kumar, series advisor university of st. The trend is to establish closed loop supply chains, where previously discarded products circle back into the value chain and minimize waste.
An extension of product life cycle in closedloop supply. Jul 31, 2007 a coherent research model is developed which classifies the closed. The popularity of these fields of research has led to the evolution of a vast number of publications in the literature. Apr 21, 2017 in its latest sustainability report apple said it was aiming for a closedloop supply chain that would eliminate the need for mining, though it has set no date for achieving this. The most accepted definition for sustainable supply chain. Pdf in recent years, sustainability concept has been introduced to many fields including management, technology, and supply chain sc. The concept of closed loop supply chain management is a very popular direction of research and companies activities. Mitra 5 addressed the inventory management issue in closedloop supply chains, and developed deterministic and stochastic models for a two. While the reverse logistics research has extensively addressed the technical aspects of product reintegration, very few insights are available on whether oems should commit themselves to a closed loop.
Pdf the concept of closedloop supply chain management is a very popular direction of research and companies activities. Closed loop supply chain management clscm supply chain is a set of activities that includes purchasing, manufacturing, logistics, distribution, marketing, that perform the function of delivering value to end customer turan paksoy, 2011. Closed loop supply chains can help companies reduce waste and maximize resources, which is why a growing number of businesses are combining traditional supply chains forward. It is associated with efforts like managing production residues byproducts. Pdf specifics od closed loop supply chain management in. Reviewed 382 scientific papers on reverse logistics and closed loop supply chain. 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. After each case, we summarize and discuss the distinguishing features of the supply chains. A closed loop supply chain is designed and managed in such a way as to combine both forward and reverse supply chains.
A closedloop supply chain is designed and managed in such a way as to combine both forward and reverse supply chains. Case study research in supply chains an outline and. Reverse logistics quantitative models for closedloop. Closed loops depict supply chains for which original equipement manufacturer reintegrate their returned products into their own production network. Closed loop supply chain management and reverse logistics.
Dells supply chain brings closedloop recycling advantage. Closed loop 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 guide et al. Pdf specifics of closed loop supply chain management in. Case study research in supply chains an outline and three.
New developments to improve the sustainability of business practices mark e. Reverse logistics, closed loop supply chain management, sustainable supply chain management. Regarding the recent definition of a closedloop supply chain, we should mention the elevated description of clsc based on current requirements found in guide and van wassenhove 2009. Strategic closedloop supply chain management springerlink. Closing the loop at the end of products useful life is earning increased attention from industry and academia. Strategic closedloop supply chain management baptiste. 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. Efficiency supply chain models include, the efficient chain model, the fast chain model and the continuous flow model. Finally, we discuss the management of each of the different supply chain systems, and identify the key research. Material and information flow both up and down the supply chain. An introduction to creating a closedloop supply chain. How a closed loop supply chain can help reduce product. Business value from closedloop supply chains citeseerx.
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. Edited by daria battini, marja bogotaj, alok choudhary. Supply chain best practices guide this guide details 25 high value best practices for supply chain management organized by function, including procurement, order management, manufacturing and more. Supply chain management and closedloop supply chain management clscm have developed into established concepts in recent. In its latest sustainability report apple said it was aiming for a closedloop supply chain that would eliminate the. Blanc 10 claimed that closedloop supply chain management is defined as the integration of business processes that creates additional value for all original and new players in the supply chain. The recent or upcoming enactment of regulations regarding the management.
While the reverse logistics research has extensively. Economic, marketing, and legislative drivers increasingly are leading companies to. Cocacola european partners, for example, is collaborating with recyclers, packaging manufacturers and other firms across the supply chain to cut costs and materials used. Why you should aim for a closedloop supply chain articles. Jan 31, 2017 many leading companies are already using closed loop approaches and achieving cost savings from these efforts. Even if raw materials are used, the goal of the closed loop supply chain is to reduce the number of raw materials needed, through reclaiming and reusing postconsumer materials. Managing these activities can be a challenge for companies. It is associated with efforts like managing production residues byproducts and waste in such a way as to minimize the level of waste transferred to landfills or incinerators. This dedication is evident by the vast number of publications in scientific. How a closed loop supply chain can help reduce product waste. Based on environmental, legal, social, and economic factors, reverse logistics and closed loop. Reverse logistics concerns the integration of used and obsolete products back into the supply chain as valuable resources.
The challenge of closedloop supply chains informs journal. Supply chain management clscm refers to all forward logistics in the chain like procurement of materials, production and distribution. Implementing a closedloop supply chain, the effects. In recent years, the management of closed loop supply chains has gained importance because of increased legislation on producer respon bility, requiring companies to take back.
Request pdf closed loop supply chain management this chapter provides an overview of concepts within the field of closed loop supply chain management. Reverse logistics is an area of the supply chain that has been relatively ignored until recent years, as far as costs are concerned, says bill wascher, president and ceo of seko worldwide. Apple aims for closedloop supply chain supply management. Gaps of related research is identified and future research opportunities are identified. Therefore, closed loop supply chains have traditional forward supply chain activities and a set of additional activities required for the reverse supply chain. Apple has pledged to build its iphone from entirely recycled materials. Managing closedloop supply chains simme douwe flapper. Wielandwallenburg, 2011 supply chain management scm is the. Various businesses have begun implementing sustainability initiatives as a way to reduce waste, but also gain profit from both the forward and.
Pdf specifics of closed loop supply chain management in the. Closed loops depict supply chains for which original equipement manufacturer. Traditional supply chains are linear, said the report. The most accepted definition for sustainable supply chain management sscm is creating, using, and recycling or disposing of all consumer products in a closed loop method 7.
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. Strategic closedloop supply chain management request pdf. Dec 30, 2016 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. Information about closedloop supply chain clsc clsc mainly occur due to commercial returns, warranty replacements, recycling and reuse or leased equipment renewals easwaran and uster, 2009. Introduction closed loop supply chains couple the forward and reverse operations in supply chain in order to maximize economic andor ecological value.
Closed loop supply chain management and reverse logisticsa. Closedloop supply chain models with product remanufacturing. Closed loop supply chain management and reverse logistics a. Manufacturing, remanufacturing, transport warehousing closed loop supply chain model is developed in turki et al. Closed loop supply chain management is defined as the design, control and operation of a system to maximize value creation over the entire lifecycle of a. Supply chain best practices guide this guide details 25 high value best practices for supply chain management organized by function, including procurement, order management, manufacturing and. The arising product flows pose novel challenges for supply chain management. Dynamic development and execution of closedloop supply chains. Wielandwallenburg, 2011 supply chain management scm is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain. Focus on sustainable development and green economics has.
Even if raw materials are used, the goal of the closedloop supply chain is to reduce the number of raw materials needed, through reclaiming and reusing postconsumer materials. 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. The structure of the most complex process aimed at the management of logistics flows can be designed according to two methods namely open. All three of these models put efficiency first and are geared toward certain industries like paper industries, cement industries, commodity producing industries and even budget fashion industries. Information about closedloop supply chain clsc clsc mainly occur due to commercial returns, warranty replacements, recycling and reuse or leased equipment renewals easwaran and uster. A forward supply chain is all processes involved in the creation of new products from raw materials through to their distribution to consumers. Pdf specifics od closed loop supply chain management in the. From conceptual to an action oriented framework on core acquisition journal of cleaner production, vol. A three level framework for closedloop supply chain. A forward supply chain is all processes involved in the creation of. Use this document as a guide in implementing work activities in your supply chain operations that have proven to increase efficiency, cost.
Materials are mined, manufactured as products and often end up in landfills after use. Emphasizing the economics of scm, closed loop supply chain management is the design, control, and operation of a system to maximize value creation over the entire life cycle of a product with. As the supply chain assumes a more important role in a business enterprise, companies are scrutinizing logistics costs to eliminate redundancies, and returns. Emphasizing the economics of scm, closedloop supply chain management is the design, control, and operation of a system to maximize value creation over the entire life cycle of a product with. It is associated with efforts like managing production residues byproducts and waste in such a way as to minimize. In recent years, sustainability concept has been introduced to many fields including management, technology, and supply chain sc.
The concept of closedloop supply chain management is a very popular direction of research and companies activities. 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. Economic, marketing, and legislative drivers increasingly are leading companies to take back and recover their products after use. Assessing a measure of sustainable supply chain management sscm performance is currently a key challenge. The literature on sscm is very limited and performance measures need to. Smart management of closedloop supply chains means profitable. Closedloop supply chains differ significantly from forward supply chains in. Understanding the different types of supply chain models. This thesis describes the remanufacturing logistics process which based on closedloop supply chain management. Closed loop supply chain management clscm supply chain is a set of activities that includes purchasing, manufacturing, logistics, distribution, marketing, that perform the function of delivering. May 28, 2014 dells supply chain brings closed loop recycling advantage. 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 guide et al. The remanufacturing reverse logistics management based on.
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