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