Closed loop supply chain

This chapter gives the reader an understanding of the managerial aspects of the reverse flows with various kinds of returns in manufacturing firms. With the increasing streams of returns over the product life cycle, including repair and replacement, end-of-use return, end-of-life return, production return flows, and distribution return, effective disposition of the returned products, components and packaging has grown as an urgent concern of manufacturing firms. Reverse logistics is intrinsically consistent with environmental sustainability. Manufacturing firms can reduce the emissions of hazardous emissions and energy consumption by maximizing tons per mile, consolidating shipments, optimizing the waste management and material recovery processes. These practices not only lower waste and pollution to protect the environment, but also enhance firms’ profitability, asset utilization, and sustainable development. The other important topic in closed loop supply chain management is the asset recovery—the process of maximizing the value of unused or end-of-life assets through effective identification, redeployment, and divestment. Asset recovery enables businesses to capture the full value of returned products and save economic costs in remanufacturing and reuse without violating the regulatory requirements, thereby strengthening the cost reduction and product quality control.