The world is experiencing a difficult time nowadays. The fact that the ecosystem and the environment suffer from human activity is undeniable, and that is, almost every aspect of the industry is affected by a need to re-think the old models of business and production. The closed-loop supply chain process receives significance as it secures the environment and aims to give a commodity a second life. The fundamental purpose of the paper is to discover the return process in the closed-loop supply chain process.
The supply chain process involves certain components, namely:
- Purchasing;
- Manufacturing;
- Logistics;
- Distribution;
- Marketing.
The sustainable development and the fact that society has already changed some visions towards the environment and aims to be environmentally friendly, stimulated the improvement in the sphere of supply chain and logistics. As a matter of fact, it resulted in the creation of the closed loop supply chain management and reverse logistics. The primary objective of the closed loop supply chain process is to take into consideration the environmental impact.
The term of closed loop supply chain process is commonly interpreted as “the design, control, and operation of a system to maximize value creation over the entire life cycle of a product with a dynamic recovery of value from different types and volumes of returns over time” (Kumar, 2013, p. 456).
First and foremost, it should be stated that the closed loop supply chain process aims to maximize the economic profit and minimize the usage of energy resources and pollution. Moreover, the logistics system is more complex in this type of supply chain. In comparison to the traditional supply chain model, the closed loop one has a number of differences. The traditional model is centered on the supplier and the buyer; however, in the model under consideration, the second life of the good is prioritized (Stindt & Sahamie, 2012). The wastes should be reduced to the minimum.
Modern people consume much more products than previous generations. The volume of consumption increase annually, and it consequently leads to the increasing rate of the wastes. The problem of wastes is not just a local issue; it is a global environmental problem that requires immediate solutions. The closed loop supply chain process is a perfect option to reduce wastes. Production without wastes is the manufacturing of the future.
Almost every product can have a chance for a second life and can be re-made (Bell, Mollenkopf, & Stolze, 2013). Thus, the return process is significantly important for the closed loop supply chain model. The customers return the old well or the one that does not function appropriately and the companies can re-make it or use some details instead of sending it to the landfills.
In conclusion, it should be pointed out that the companies should re-think their strategies and objectives in order to contribute to the improvement of the environmental situation. It is worth noting that the closed loop supply chain process is one of the options that can be used by the businessmen in order to save the planet. The return process in this type of the supply chain is beneficial as it gives the product the second chance and aims to minimize the wastes and improve the process of production. The customer can return the product that is old or does not function appropriately.
References
Bell, J., Mollenkopf, D., & Stolze, H. (2013). Natural resource scarcity and the closed‐loop supply chain: A resource‐advantage view. International Journal of Physical Distribution & Logistics Management, 43(5), 351-379.
Kumar, N. (2013). Closed Loop Supply Chain Management and Reverse Logistics -A Literature Review. International Journal of Engineering Research and Technology, 6(4), 455-468.
Stindt, D., & Sahamie, R. (2012). Review of research on closed loop supply chain management in the process industry. Flexible Services and Manufacturing Journal, 26(1), 268-293.