Under the supply chain management concept, the product supply areas of the company are reengineered to a business process, rather than functional model. Pdf the returns management process in supply chain strategy. The returns management process in supply chain strategy. As supply chain management has become more strategic rather than transactional in nature the need for a more integrated perspective of how products, and processes should be aligned with strategic. How do we manage reverse logistics as an integral part of supply chain management to improve efficiency and reduce cost. The marketinglogistics relationship relative to the returns management. Keywords returns, supply chain management, qualitative methods, europe paper type research paper introduction many companies have adopted and implemented supply chain initiatives, particularly as they globalize their. Retailers have to cope with all kinds of returnsfrom apparel that just. Pdf returns management is the supply chain management process. Synchronizing material movements is a common supply chain management challenge, especially for returns.
Every company in this chain, irrespective of size mainly they thankful to its customers as the fact is that in all. Areturns of faulty inputs used in the production process brelationships with internal suppliers creturns of faulty products for. What is the role of the returns management process in the firms overall supply chain strategy. Best practices in green supply chain management final. Supplychain management was then further defined as the integration of supply chain activities through improved supplychain relationships to achieve a competitive advantage. Supply chain management by prof adithya ghose in 2005 slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Management of this aspect of the scm means fast and easy returns management, automation and deciding how to process returned. Returns management as a supply chain management process includes several. Department of business economics university of verona via. Furthermore, your secured profile information provides us with crucial analytical data to. Improving reverse logistics with a returns management strategy shippers and their service providers are outlining plans for the new year by identifying pain points in the reverse loop. Supply chain management process plays a huge significance in running key operations for almost every organization. For retailers, manufacturers and distributors, returns have often. Membership registration to supply chain 247 provides you with full access to all our database resources.
Managers in five italian firms, across marketing and logistics roles, at strategic and operational levels were interviewed. The role of customer service in the supply chain management is not incidental. And in a growing number of cases, theres now a clear mission. Rather, effective returns management can improve a firms profitability, enhance customer relationships, and be an essential part of an integrated supply chain management strategy. Integrating the returns strategy with your supply chain transformation strategy can further enhance the value chain and generate better return on assets. In todays global competitive environment, individual companies no longer compete as autonomous entities but as supplychain networks. Product returns have often been viewed by customers as a necessary evil, a painful process and, usually, unavoidable.
Aligning products with supply chain processes and strategy. Reverse logistics the process of planning, implementing, and controlling the. Purpose the purpose of this paper is to consider theory development related to returns management within supply chain strategy. Also covered are reverse supply chain models such as. Sc1x supply chain and logistics fundamentals lesson. But in setting supply chain strategy, youll need to look at three layers of cost. Rather, effective returns management can improve a firms profitability, enhance customer. Returns management is the supply chain management process by which activities associated with returns, reverse logistics, gatekeeping, and avoidance are managed within the firm and across key members of the supply chain. For instance, hazardous waste and related disposal methods place stringent. The department may need to return goods for various reasons.
Ijpdlm the returns management process in supply chain. Supply chain management has received substantial attention from both researchers and practitioners, yet in many companies management is struggling to implement supply chain processes the order. The returns management process is a core supply chain management process that comprises the activities related to returns avoidance, gatekeeping, reverse logistics and value maximisation in the. Pdf purpose the purpose of this paper is to consider theory development related to returns management within supply chain strategy. Supply chain in the environmental life cycle raw material extraction transport manufacturetransport retail consumer use transport disposal concept design typical. Accurate inbound shipment informationincluding parts, condition, quantity, and datesensures the receiving dock and repair depot are stocked with the labor and equipment required to handle and process returns. Managing reverse logistics to improve supply chain.
Reverse logistics effective returns management in an. Supply chain and inventory management case studies. According to the apics dictionary, 14th edition, the. Reverse logistics, retail, supply chain management. As a result of this manual involvement, the costs of han. The purpose of this paper is to consider theory development related to returns management within supply chain strategy. We recommend the definition of supply chain management developed and used by the global supply chain forum. Taxation labour and material costs have been, for many. As long as products are being sold, there will always be some returns. The marketinglogistics relationship relative to the returns management process is investigated. Without a successful supply chain, processes could halt at the floor level and ultimately.
What role does a firms supply chain orientation play in how it engages in the returns management process. Supply chain management scm process steps for building. Reverse logistics welcome to ups supply chain solutions. Pdf the returns management process in supply chain. A long history of warehouse management business, process, and it expertise 1994. How are the marketing and logistics functional areas integrated into the returns management process. In summary, returns management should no longer be the ugly stepchild of the supply chain. Increasingly, supply chain management is being recognized as the management of key business processes across the network of organizations that comprise the supply chain.
Supply chain management has broader objectives and actually encompasses logistics management. Keywords returns, supply chain management, qualitative methods, europe. Reverse logistics management for supply chain deloitte us. The correct implementation of this process enables management not only to manage the reverse product flow efficiently, but to identify opportunities to reduce unwanted returns. Importance of customer service in supply chain management. Reverse logistics is more than just returns management, it is activities related to returns avoidance, gatekeeping, disposal and all other aftermarket supply chain issues. Improving reverse logistics with a returns management strategy.
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