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Strategic closed-loop supply chain management

Author: Lebreton, Baptiste INSEAD Area: Technology and Operations Management Series: Lecture notes in economics and mathematical systems ; 586 Publisher: Springer, 2007.Language: EnglishDescription: 154 p. : Graphs ; 24 cm.ISBN: 3540389075Type of document: INSEAD Book Online Access: Click here Bibliography/Index: Includes bibliographical referencesAbstract: Closed loops depict supply chains for which Original Equipment Manufacturer reintegrate their returned products into their own production network. While the reverse logistics research has extensively addressed the technical aspects of product reintegration, very few insights are available on whether OEMs should commit themselves to a closed-loop. The structure of the monograph is aligned to the decision-making process of Original Equipment Manufacturers willing to investigate the potential of closed-loops. This decision-making process is structured around fundamental questions managers are expected to answer prior to running a circular supply chain: Does a closed-loop fit with the corporate objectives? Is it profitable to run a closed-loop? How should OEMs deal with free-riders? Competition? Which product/technology/location setup leads to a profit-maximizing supply chain? The planning framework is finally applied to two case studies from the tire and the computer industry.
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INSEAD Book Digital Library
E-book HD38.5 .L43 2007
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INSEAD Book Europe Campus
Main Collection
Print HD38.5 .L43 2007
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001220528
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INSEAD Book Europe Campus
Main Collection
Print HD38.5 .L43 2007
(Browse shelf)
001221385
Available 001221385
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Includes bibliographical references

Closed loops depict supply chains for which Original Equipment Manufacturer reintegrate their returned products into their own production network. While the reverse logistics research has extensively addressed the technical aspects of product reintegration, very few insights are available on whether OEMs should commit themselves to a closed-loop. The structure of the monograph is aligned to the decision-making process of Original Equipment Manufacturers willing to investigate the potential of closed-loops. This decision-making process is structured around fundamental questions managers are expected to answer prior to running a circular supply chain: Does a closed-loop fit with the corporate objectives? Is it profitable to run a closed-loop? How should OEMs deal with free-riders? Competition? Which product/technology/location setup leads to a profit-maximizing supply chain? The planning framework is finally applied to two case studies from the tire and the computer industry.

Digitized

Strategic Closed-Loop Supply Chain Management Contents Part I Setting Up Closed-Loop Supply Chains 1 Introduction ...................................................................................................... 3 1.1 Sustainable Supply Chain Management ..................................... 3 1.2 Outline of This Monograph............................................................... 8 2 Strategic Aspects of Asset Recovery ..................................................... 2.1 Corporate Strategy and Competitive Advantage..................... 2.2 Closed-Loop Supply Chains and Competitive Strategies .... 2.2.1 Cost Leadership .................................................................... 2.2.2 Differentiation......................................................................... 2.2.3 Focused Strategies ............................................................... 3 Strategic Impact of Closed-Loop Supply Chains............................... 3.1 Literature Overview .......................................................................... 3.2 A Generic Closed-Loop Strategic Model..................................... 3.3 Closed-Loop Supply Chains: Managerial Insights ................. 3.3.1 The Impact of Green Fees on Asset Recovery.............. 3.3.2 Managing the Cannibalization Effect ............................ 3.3.3 The Role of Intra-Organizational Incentives Alignment ............................................................................... 4 Competition in Closed-Loop Supply Chains....................................... 4.1 External Competition as a Signal of Profitability ................... 4.1.1 Evidence from Current Practice ...................................... 4.1.2 OEMs' Competitive Leverages........................................... 4.2 How to Deal with Independent Refurbishers: A Literature Overview ......................................................................... 4.3 Analyzing Best Responses Strategies for Manufacturers ... 13 13 17 18 23 27 31 31 33 39 39 43 48 51 52 52 54 56 58 X Contents 4.3.1 Competitive Asset Recovery Strategies ............................ 59 4.3.2 Entry Preempting Asset Recovery Strategies ................ 63 5 Strategic Network Planning in Closed-Loop Supply Chains............................................................................................................. 67 5.1 Strategic Closed-Loop Network Planning: A Review ............... 71 5.2 A Generic Strategic Network Planning Model............................. 76 5.2.1 The Key Factors of Remanufacturing............................... 77 5.2.2 Optimization Model ............................................................... 81 5.2.3 An Inter-Generational Compatibility Extension........... 85 5.3 Extensions to the Generic Strategic Planning Model ............. 87 5.3.1 Recovery Path Determination ............................................. 87 5.3.2 Location of Recovery Centers ............................................. 91 Part II Closed-Loop Supply Chains: Case Studies 6 Tire Industry .................................................................................................. 101 6.1 Introduction........................................................................................... 101 6.2 Model Implementation....................................................................... 105 6.2.1 Demand Segmentation ......................................................... 106 6.2.2 Return Flow Timing and Quantities ................................ 108 6.2.3 Reintegration Potential.......................................................... 109 6.3 Optimization Results ......................................................................... 110 6.3.1 Scenario Overview .................................................................. 110 6.3.2 Closed-Loop Supply Chains and Functional Goods ...115 7 Computer Industry ....................................................................................... 119 7.1 The Environmental Challenge of Computer Manufacturing .................................................................................... 119 7.2 Model Implementation....................................................................... 120 7.2.1 Demand Segmentation ......................................................... 122 7.2.2 Return Flow Timing and Quantities ................................ 123 7.2.3 Reintegration Potential.......................................................... 124 7.3 Optimization Results ......................................................................... 126 7.3.1 Impact Assessment of the European Product Stewardship Laws ................................................................ 127 7.3.2 Impact Assessment of Computer Refurbishing ............ 129 8 Conclusion and Outlook.............................................................................. 133 References............................................................................................................ 139 Contents XI List of Figures ....................................................................................................151 List of Tables....................................................................................................... 153

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