Enhancing Closed-Loop Supply Chain in Global Supply Chain

Abstract

This chapter explains the overview of Closed-Loop Supply Chain (CLSC); CLSC activities and reverse logistics outsourcing in global supply chain; and the applications of CLSC in global supply chain. CLSC, the integration of the forward and reverse supply chains, is an emerging area of interest as firms seek to reduce the costs of product returns, increase profits through value recovery, and meet more rigorous environmental standards. In CLSC, the original manufacturer will take the used product and remake it. CLSC deals with the uncertainty in the timing, location, quantity, and quality of returned products. CLSC integrates the returns of end-of-life products from end-users to retailers, manufacturers, and suppliers for refurbishment, remanufacturing, and recycling. The chapter argues that enhancing CLSC has the potential to reach strategic goals toward sustainability in global supply chain.