The terms returns management(RM) and reverse logistics(RL) have been used interchangeably in literature. However, there exists a difference between the two terms. For the purpose of this thesis the following definition is used to describe reverse logistics:
“Reverse Logistics is the process of moving goods from their typical final destination for the purpose of capturing value […] Reverse logistics is limited to the movement of goods or material “backward” through the supply chain”
That is the reverse logistics is limited to the movement of goods from the customer to company whereas returns management involves a more holistic approach and can be defined as follows:
“Returns management is the supply chain management process by which activities …show more content…
Rogers & Tibben-Lembke (1999): P.7
For an integrated view of the global supply chain process, returns management can be seen as a part of the closed loop supply chain. In the following section an overview of closed loop supply chain is shown along with how returns management integrates with it.
1.1.3 Closed Loop Supply Chain
Closed Loop supply chain are supply chains where in addition to the flow of products from the suppliers of raw materials to the end customers, the return flow of products from the customers is included. The return flow can be considered as the returns management process and the returned product can be integrated in to the ‘forward’ flow using remanufacturing methods.
Figure 2: Closed Loop Supply Chain. Own Illustration
In order to get a better understanding of Returns Management, the core process involved is discussed in the following section.
1.1.4 Core processes in Returns Management
Returns Management can involve many intricate details and industry specific nuances. However, the following core process generally exists as a part of any industry, the study of which can help us identify potential points of …show more content…
These measures may include improving quality of the products and increasing the ease of use of the product by giving better instructions to the customer. This thesis doesn’t explicitly focus on the return avoidance but focuses on the process of managing the process once the product returns has
“Reverse Logistics is the process of moving goods from their typical final destination for the purpose of capturing value […] Reverse logistics is limited to the movement of goods or material “backward” through the supply chain”
That is the reverse logistics is limited to the movement of goods from the customer to company whereas returns management involves a more holistic approach and can be defined as follows:
“Returns management is the supply chain management process by which activities …show more content…
Rogers & Tibben-Lembke (1999): P.7
For an integrated view of the global supply chain process, returns management can be seen as a part of the closed loop supply chain. In the following section an overview of closed loop supply chain is shown along with how returns management integrates with it.
1.1.3 Closed Loop Supply Chain
Closed Loop supply chain are supply chains where in addition to the flow of products from the suppliers of raw materials to the end customers, the return flow of products from the customers is included. The return flow can be considered as the returns management process and the returned product can be integrated in to the ‘forward’ flow using remanufacturing methods.
Figure 2: Closed Loop Supply Chain. Own Illustration
In order to get a better understanding of Returns Management, the core process involved is discussed in the following section.
1.1.4 Core processes in Returns Management
Returns Management can involve many intricate details and industry specific nuances. However, the following core process generally exists as a part of any industry, the study of which can help us identify potential points of …show more content…
These measures may include improving quality of the products and increasing the ease of use of the product by giving better instructions to the customer. This thesis doesn’t explicitly focus on the return avoidance but focuses on the process of managing the process once the product returns has