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Reverse Logistics – Capturing Value in the Extended Supply Chain

Author

Listed:
  • Fleischmann, M.
  • van Nunen, J.A.E.E.
  • Graeve, B.
  • Gapp, R.

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.

Suggested Citation

  • Fleischmann, M. & van Nunen, J.A.E.E. & Graeve, B. & Gapp, R., 2004. "Reverse Logistics – Capturing Value in the Extended Supply Chain," ERIM Report Series Research in Management ERS-2004-091-LIS, 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.
    • Handle: RePEc:ems:eureri:1806
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    References listed on IDEAS

    as
    1. Moritz Fleischmann & Jo A. E. E. van Nunen & Ben Gräve, 2003. "Integrating Closed-Loop Supply Chains and Spare-Parts Management at IBM," Interfaces, INFORMS, vol. 33(6), pages 44-56, December.
    2. de Brito, M.P. & Dekker, R., 2003. "A Framework for Reverse Logistics," ERIM Report Series Research in Management ERS-2003-045-LIS, 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.
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    Cited by:

    1. Lampel, Linda, 2020. "Value capture and distribution in second-hand clothing trade: The role of charity discourses, commercial strategies and economic and political contexts," ÖFSE-Forum, Austrian Foundation for Development Research (ÖFSE), volume 72, number 72.

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    More about this item

    Keywords

    Supply Chain Management; closed-loop supply chains; electronics industry; reverse logistics; service management;
    All these keywords.

    JEL classification:

    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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