Clsc generally incorporates activities observed in both the traditional forward supply chain and in the reverse supply chain guide et al. The study provides an in depth analysis of a proven closedloop supply chain that is replicable and taken two decades to get where it is for the dell corporation. Last week, dell introduced a new system, the optiplex 3030 allinone desktop, with a chassis that uses a minimum of 10 percent closedloop, postconsumer recycled plastics. Specifically, the following three common regulatory policies are considered. Business value from closedloop supply chains semantic scholar. Closedloop supply chain management is the extension of forward supply chains with a reverse supply chain reverse logistics and is concerned with the integration of key business processes to. Strategic and tactical aspects of closedloop supply chains mark ferguson college of management, georgia institute of technology, atlanta, ga 30332, usa, mark.
Therefore, closed loop supply chains have traditional forward supply chain activities and a set of additional activities required for the reverse supply chain. Closedloop supply chain models with considering the. The current literature has determined a comprehensive list of strategies, methods, and tools i. The purpose of this paper is to introduce the reader to the field of closedloop supply chains with a strong business perspective, i. Recognize the complex, manage the simple the buzz for many companies over the past few years has been about avoiding complexity. How creating a closedloop supply chain can make businesses. First, two closed loop supply chains are proposed for fashion products in the regular retailing channel mode and the rentbased mode. Green supply chain management focuses on environmental aspects across every element of the supply chain. Meals all meals, except for thursday dinner, are provided. These types of closedloop supply chains may hold the greatest promise due to the volume of products available for reuse, but at the same time these types of supply chains represent some of.
Integrating such reverse supply chains with traditional forward supply chains, covering all processes and actors from raw material extraction to the final end customer, results in closed loop. Pdf managing closed loop supply chains download full pdf. The call for sustainable development has also entered the business. The trend is to establish closed loop supply chains, where previously discarded products circle back into the value chain and minimize waste. These differences are not well understood in many contexts, and the situation is complicated by many types of product returns. For example, most products require raw materials to make, but some recycled material is useable for creating new consumer. Use features like bookmarks, note taking and highlighting while reading sustainable operations and closedloop supply chains. Pdf business aspects of closedloop supply chains semantic. From the terms first use in 1982, the very words supply chain have implied a linear process. Why you should aim for a closedloop supply chain articles. Clsc activities and reverse logistics outsourcing in global supply chain.
The model also results in a fact that with the implication of the extended supply chain, a. Shifting supply chains from linear to closed loop models is an important step towards circular economy. Even if raw materials are used, the goal of the closedloop supply chain is to reduce the number of raw materials needed. Progress is slow since closedloop supply chains are rarely considered as value. The triggers, strategies and incentives to promote osh in the primary and secondary supply. Download it once and read it on your kindle device, pc, phones or tablets. Closedloop supply chain research has primarily focused on discrete industries, leaving important issues involving waste disposal and reuse in process industries unaddressed. It also investigates the factors leading to the development of a closedloop supply chain and offers some useful implementation information. The major difference between closedloop supply chains and traditional forward supply chains is for a forward supply chain the customer is at the end of the. Closed loop supply chains clsc offer companies a unique opportunity to improve their profits whilst serving societal responsibility. Enhancing closedloop supply chain in global supply chain. A closed loop supply chain is designed and managed in such a way as to combine both forward and reverse supply chains. New business models need to be developed by joint cooperation between. The basics of a baked goods supply chain your business.
Kumar evaluates the relative success of these strategies in the long term 25. Aspects of closedloop supply chains, foundation and trends. Reverse logistics, returns management, closedloop supply chains, case studies 1 introduction 1. More generally, it aims to help original equipment manufacturers oems in their decisionmaking process of building closedloop supply chains. May 28, 2014 dells supply chain brings closed loop recycling advantage. Business aspects of closedloop supply chains carnegie.
This study aims to assess the strategic aspects of asset recovery, and to provide a guide for optimal network planning in closedloop supply chains with reuse and remanufacturing. In this chapter, we analyze the clsc processes with a focus on quality. 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. Clsc, the integration of the forward and reverse supply chains, is an emerging area of interest as fir. The challenge of closedloop supply chains informs journal. Closed loop supply chains differ significantly from forward supply chains in many aspects. Sustainable operations and closedloop supply chains. This paper investigates business model innovation for circular supply chains, and proposes that productservice systems pss business models can enhance the circularity of supply chains through value creation. Finally, i conclude with some directions for future research. The implementation of supply chain management processes can improve the efficiency and profitability of a company. Section 6 concludes this paper through identifying some insights and lessons from this investigation.
Sustainable value creation in closedloop supply chains. Today, the task of developing reverse logistics and closedloop supply chains in both developed and developing industries is accepted as a vital need in our societies. Jan 31, 2017 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 logistics with reverse logistics, business2community reports. The critical factors for successful closedloop supply chains. They proposed different design options for a closed loop supply chain concentrating on the handling the reverse material flows to reintegrate them into their genuine supply chains. Business aspects of closed loop supply chains carnegie mellon business guide jr. In closedloop supply chains clscs there are reverse flows of used products.
Firstly, a closedloop supply chain cuts production costs and improves a companys bottom line. In this figure, the classical forward, and reverse supply chains are presented by solid lines and dashes, respectively. If we consider forward and reverse supply chains simultaneously, the result network will construct a closed loop supply chain. I am pleased to report that closed loop supply chains. The cases analysed involve actors at different supply chain levels, and. Closed loop supply chain description the full technique overview is available for free. Supply chain management software includes tools or modules used to execute supply chain transactions, manage supplier relationships and control associated business processes. More specifically, the sale of recovered outputs would boost revenues while the recovered outputs can be used as production inputs, thereby lowering raw material costs. Manufacturing resource planning mrp ii is defined as a method for the effective planning of all resources of a manufacturing company. Besides offering important coverage of the structure and economics of the current reman industry, the contributors present surprising.
As the existing literature shows, reverse logistics and closed loop supply chains gained considerable attention in both academia and industry and various efforts are made for different problems in reverse logistics and closed loop supply chains ranging from network design to collection and remanufacturing, from competition to coordination. An introduction to creating a closedloop supply chain. The major difference between closedloop supply chains and traditional forward supply chains is for a forward supply chain the customer is at the end of the processes, and for a closedloop supply chain. New directions to improve the sustainability of business. Quality issues and uncertainties are encountered in almost every aspect of closed loop supply chains clscs. Dells supply chain brings closedloop recycling advantage. Smart management of closedloop supply chains means profitable recovery of value from these items products, functional components. After each case, we summarize and discuss the distinguishing features of the supply. What are the four elements of supply chain management.
For a diesel engine a section of this article tactical issues in clscs is. Exploring critical factors for successful closed loop supply chains with remanufacturing a thesis submitted to the faculty of the graduate school of the university of minnesota by kyle john turner in partial fulfillment of the requirements for the degree of master of science in engineering management adviser. Drivers of this increased interest include the substantial increase in the price of raw materials, the increase in. How a closed loop supply chain can help reduce product waste. Todays common business practice of extracting nonrenewable raw materials from the earth, processing them, turning them into products, selling the products to customers, and then having the customers dispose of the products in a landfill or through incineration is not sustainable. The key themes that came out of the literature are.
Most meals will be at cmu, except for friday nights dinner, which will be in. New developments to improve the sustainability of business practices is an important new addition to the short list of quality publications in this area. A forward supply chain is all processes involved in the creation of new products from raw materials through to their distribution to consumers. Compared to the studies on the fashion and textile industry, supply chain design and sustainable fashion products, this study contributes to the literature in the following aspects. This chapter explains the overview of closed loop supply chain clsc.
Challenges in supply chain redesign for the circular. Closedloop supply chains can substantially help cut back on these wastes. Jit system and supply chain management 5 salient features a jit system just intime system is an inventory management philosophy aimed at reducing waste and. A sustainable future for closed loop supply chains.
Recellular is developing an ecommerce site strictly for business to business in. Business aspects of closed loop supply chains editors. Due to rapid technological advancement, organisations with a basic supply chain can develop this chain into a more complex structure involving a higher level of interdependence and connectivity between more organisations, this constitutes a supplychain. Achieving optimization with closedloop transportation. Promoting occupational safety and health through the. 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. Managers who consider a closedloop supply chain just another environmental initiative need to update their thinking. Based on the new definition, 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 dynamic recovery of. As the editors point out, the traditional business model of a manufacturer that involves a take. New developments to improve the sustainability of business practices mark e. Jul 27, 2010 strategic and tactical aspects of closed loop supply chains. Today we define closed loop supply chain management as 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.
Operations management of logistics and supply chain. Strategic closedloop supply chain management baptiste. The management of clsc differs in a number of ways from managing supply chains in general. Two factors make transportation a more strategic business function than in the past. 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. Sustainable operations and closedloop supply chains kindle edition by souza, gilvan.
Supply chain event management abbreviated as scem is a consideration of all possible events and factors that can. The integration of forward and reverse supply chains is termed as closed loop supply chains. Reverse logistics concerns the integration of used and obsolete products back into the supply chain as valuable resources. Introduction closing supply chains refers to taking care of items once they are no longer desired or can no longer be used by their user.
If you have not heard the term closedloop supply chains before, chances are that you soon will. Closedloop supply chain management is the extension of forward supply chains with a reverse supply chain reverse logistics and is concerned with the integration of key business. A business perspective on closedloop supply chains taking a traditional activitybased view of the reverse sup ply chain shows the key activities with a focus on indi vidual tasks figure 1. Closedloop supply chains differ significantly from forward supply chains in many aspects. With the lack of such kind of relations, the model can be separated into two parts independently and become a supply chain including forward and reverse chains. This book is primarily intended to serve as a researchbased textbook on sustainable supply chains for graduate programs in business, management, industrial engineering, and industrial ecology, but it should also be of interest for researchers in the broader sustainable supply chain. 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. Reverse logistics quantitative models for closedloop. Supply chains vary in size and complexity, but they all have the same goal.
Retailerdriven closedloop supply chains with product. Closedloop supply chains with remanufacturing stateofthe. Closed loop supply chains can substantially help cut back on these wastes. Strategic and tactical aspects of closedloop supply chains. Supply chain sustainability and the triple bottom line. Supply chain integration modeling, optimization, and applications sameer kumar, series advisor university of st. Closed loop supply chain management and reverse logistics.
Modern firms that use closedloop supply chains as a competitive strategy receive many benefitsparticularly higher profitability and control over a products entire lifecycle. Green operations reverse logistics, green design, green manufacturing, waste management, and product life cycle assessment. The reverse logistics system is a closedloop supply chain. Our aim is to guide the reader through the main aspects of both theory and practice in clscs. A framework for closedloop supply chains of reusable articles. The supply chain created a competitive advantage that became dells corporate identity. Yet, research herefrom a business, not engineering, perspectivehas only. 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. Economic, marketing, and legislative drivers increasingly are leading companies to take back and recover their products after use. Pdf design of closed loop supply chains researchgate. Ideally, it addresses operational planning in units, financial planning, and has a simulation capability to answer whatif questions and extension of.
Forecasting product returns in closedloop supply chains. Productservice systems business models for circular supply. The integration of forward and reverse supply chains is termed as closed loop supply chains clsc. The closedloop supply chain is characterized by these interactions. In this paper, we analyse the transformation from an openloop supply chain to a closedloop supply chain. Closed loop supply chain management and reverse logistics a. Sustainable rentbased closedloop supply chain for fashion. In this paper, optimization models based on carbon regulatory policies for a closedloop supply chain design and logistics operations are presented. Jit system and supply chain management 5 salient features. Todays common business practice of extracting nonrenewable raw materials from. Toktay, interdisciplinarity in closedloop supply chain management research, in closed loop supply chains.
Jane ammons school chair and professor of isye georgia tech december 3, 20 objectives for todays class understand how efficient closed loop supply chains. Redefining the firmconsumer relationship show all authors. Using advanced technology to improve our decisionmaking and. A supplychain network scn is an evolution of the basic supply chain. The evolution of closedloop supply chain research informs. The major difference between closedloop supply chains and traditional forward supply chains is for a forward supply chain the customer is at the end of the processes, and for a closedloop supply chain there is value to be recovered from the customer or enduser.
Based on the supply chain contract design theories and focusing on the acquisition process in closedloop supply chains, this paper analyzes different supply risk sharing contracts including. The book by emmett and sood 2010 is a very good example of. For example, most products require raw materials to make, but some recycled material is useable for creating new consumer products. Inventory management in a consumer electronics closedloop. Section 5 summarizes the current challenges and future perspectives in four aspects. Van wassenhove smeal college of business administration henry ford chaired professor of manufacturing the pennsylvania state university, usa insead, france 2003, 381 p.
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