Reverse Logistics – Capturing Value in the Extended Supply Chain

Moritz Fleischmann, Jo van Nunen, B. Graeve and R. Gapp

ERIM Report Series Research in Management from Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam

Abstract: Product flows in today’s supply chains do not end once they have reached the customer. Many products lead a second and even third or fourth life after having accomplished their original task at their first customer. Consequently, a product may generate revenues multiple times, rather than a single time. Capturing this value requires a broadening of the supply chain perspective to include new processes, known as ‘reverse logistics’, as well as multiple interrelated usage cycles, linked by specific market interfaces. Coordinating the successive product uses is key to maximizing the value generated. In this chapter, we review the field of reverse logistics. We discuss its opportunities and its challenges and indicate potential ways for companies to master them. We highlight what makes reverse logistics different from ‘conventional’ supply chain processes, but also point out analogies, and explain how both views can be integrated into an extended supply chain concept. We illustrate our discussion with examples of reverse logistics practice at IBM.

Keywords: Supply Chain Management; closed-loop supply chains; electronics industry; reverse logistics; service management (search for similar items in EconPapers)
JEL-codes: L23 M M11 R4 (search for similar items in EconPapers)
Date: 2004-11-17
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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