Closed-Loop Supply Chains

This article investigates closed-loop supply chain (CLSC) as a process flow. It then presents the evolution of CLSCs as a fundamental piece of the broader business and the natural environment (B&NE) related framework of reduce, reuse, and recycle. It addresses how reverse supply chains differ from forward chains, what activities drive a reverse supply chain, and how a CLSC coordinates the forward and reverse supply chains. Product acquisition management (PrAM) focuses on obtaining the used products from the user. The three core facets of PrAM systems are presented. The reduce, reuse, and recycle (3R) hierarchy can be used to gain a more holistic view of CLSCs. Finding an appropriate contract or other means to align the incentives can prove crucial for acquiring the returned products. The future of CLSC will require a more holistic view of CLSCs across multiple business disciplines.