Supply chain processes returns management

Managing the returns channel as a business process offers the same opportunity to achieve a sustainable competitive advantage as managing the supply chain from an outbound perspective (Clen-denin 1997). Effective process management of the returns channel enables identification of productivity-improvement opportunities and breakthrough projects. 

Clendenin, J. A. (1997), Closing the Supply Chain Loop Reengineering the Returns Channel Process, International Journal of Logistics Management, Vol. 8, No. 1, pp. 75-85. 

Returns management is the process by which activities associated with returns, reverse logistics, gate keeping, and avoidance are managed within the firm and across key members of the supply chain. The correct implementation of this process enables management not cmly manages the reverse product flow efficiently, but also identifies opportunities to reduce unwanted returns and control reusable assets, such as containers, empty bottles, etc. 

SCOR focuses on five basic management processes in the supply chain as illustrated in Figure 3. These processes are plan, souree, make, deliver, and return. 

The CSCMP has produced its six-volume Supply Chain Management Process Standards. These standards closely follow the SCOR process structure with separate volumes about 50 pages in length for high-level processes that are identical to SCOR PLAN, SOURCE, MAKE, DELIVER, RETURN, and ENABLE. 

Council of Supply Chain Management Professionals, Supply Chain Management Process Standards, Council of Supply Chain Management Professionals, 2004. The standards are in six volumes Plan Processes, Source Processes, Make Processes, Deliver Processes, Return Processes, Enable Processes. 

Demand and supply planning capabilities enable companies to balance inbound and outbound logistics and thus to maximize return on assets, and to ensure a profitable match of supply and demand. Inbound and outbound logistics are also described, as upstream and downstream processes. For example, Christopher (1992) defines supply chain management as the management of upstream and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole. 

Logistics is increasingly concerned with funds flow as well as material flow and information flow (Chapter 1). It is a cross-functional discipline that addresses management processes of plan, source, make, deliver and return. These processes are repeated across the supply chain. 

---