In todays global competitive environment, individual companies no longer compete as autonomous entities but as supplychain networks. Management of this aspect of the scm means fast and easy returns management, automation and deciding how to process returned. 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. 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. But in setting supply chain strategy, youll need to look at three layers of cost. 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 department may need to return goods for various reasons. Supply chain and inventory management case studies.
The marketinglogistics relationship relative to the returns management. Supplychain management was then further defined as the integration of supply chain activities through improved supplychain relationships to achieve a competitive advantage. Reverse logistics management for supply chain deloitte us. Supply chain management by prof adithya ghose in 2005 slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. For retailers, manufacturers and distributors, returns have often. Managers in five italian firms, across marketing and logistics roles, at strategic and operational levels were interviewed. Supply chain management scm process steps for building. Areturns of faulty inputs used in the production process brelationships with internal suppliers creturns of faulty products for. Pdf purpose the purpose of this paper is to consider theory development related to returns management within supply chain strategy. How are the marketing and logistics functional areas integrated into the returns management process. Reverse logistics welcome to ups supply chain solutions. Reverse supply chain coordination and design for profitable returns.
Under the supply chain management concept, the product supply areas of the company are reengineered to a business process, rather than functional model. Membership registration to supply chain 247 provides you with full access to all our database resources. Supply chain management i about the tutorial supply chain management can be defined as the management of flow of products and services, which begins from the origin of products and ends with. Every company in this chain, irrespective of size mainly they thankful to its customers as the fact is that in all. As a result of this manual involvement, the costs of han. Coordination through revenuesharing contract is a basic strategy and applicable in a. Reverse logistics the process of planning, implementing, and controlling the. Synchronizing material movements is a common supply chain management challenge, especially for returns. Also covered are reverse supply chain models such as.
According to the apics dictionary, 14th edition, the. Aligning products with supply chain processes and strategy. Product returns have often been viewed by customers as a necessary evil, a painful process and, usually, unavoidable. 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. Improving reverse logistics with a returns management strategy. 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. Keywords returns, supply chain management, qualitative methods, europe. The marketinglogistics relationship relative to the returns management process. Reverse logistics, retail, supply chain management. Supply chain management has broader objectives and actually encompasses logistics 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. For instance, hazardous waste and related disposal methods place stringent.
The role of customer service in the supply chain management is not incidental. Retailers have to cope with all kinds of returnsfrom apparel that just. How do we manage reverse logistics as an integral part of supply chain management to improve efficiency and reduce cost. The purpose of this paper is to consider theory development related to returns management within supply chain strategy. A long history of warehouse management business, process, and it expertise 1994.
Pdf the returns management process in supply chain strategy. What role does a firms supply chain orientation play in how it engages in the returns management process. Pdf returns management is the supply chain management process. Without a successful supply chain, processes could halt at the floor level and ultimately. Sc1x supply chain and logistics fundamentals lesson. 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. And in a growing number of cases, theres now a clear mission. Integrating the returns strategy with your supply chain transformation strategy can further enhance the value chain and generate better return on assets. The returns management process in supply chain strategy. Department of business economics university of verona via. 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. Reverse logistics effective returns management in an. As long as products are being sold, there will always be some returns.
Furthermore, your secured profile information provides us with crucial analytical data to. Taxation labour and material costs have been, for many. Best practices in green supply chain management final. The marketinglogistics relationship relative to the returns management process is investigated. Importance of customer service in supply chain management. Pdf the returns management process in supply chain. Ijpdlm the returns management process in supply chain strategy. Rather, effective returns management can improve a firms profitability, enhance customer relationships, and be an essential part of an integrated supply chain management strategy. Supply chain management process plays a huge significance in running key operations for almost every organization. Returns management as a supply chain management process includes several. 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.
Ijpdlm the returns management process in supply chain. Managing reverse logistics to improve supply chain. 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 any returns that the warehouse can handle, contact the vendor and obtain the. For retailers, manufacturers and distributors, returns have often been seen as a nuisance, a cost center and an area of potential customer dissatisfaction. Logistics management is often confused with supply chain management. What is the role of the returns management process in the firms overall supply chain strategy.
We recommend the definition of supply chain management developed and used by the global supply chain forum. Increasingly, supply chain management is being recognized as the management of key business processes across the network of organizations that comprise the supply chain. Rather, effective returns management can improve a firms profitability, enhance customer. In summary, returns management should no longer be the ugly stepchild of the supply chain.
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