Value creation and appropriation in product returns management

Abstract

PurposeProduct returns management (PRM) is a core supply chain management process. Though the importance of value creation and appropriation is acknowledged, extant studies on value in product returns tend to be limited to the residual asset value (cost recovery) of the returned products. Further, value discussion in PRM is limited to the value implications for a single party in the returns transaction rather than all the product returns chain entities. The purpose of this paper is to explore value creation and appropriation in a triad of supplier-retailer-3PL in the product returns chain.Design/methodology/approachThe study uses an inductive qualitative approach. Semi-structured interviews with executives in a triad of organisations formed the primary data source for the study.FindingsThe paper identifies six value drivers and develops a value creation and appropriation framework. It shows that facilitation, value orientation, process alignment and relational factors are key drivers of value creation and appropriation in PRM.Research limitations/implicationsThe findings reinforce the view that value creation and appropriation are the outcomes of multi-party interactions in a product return chain. The framework presented contributes to the literature by showing the linkages amongst key drivers.Practical implicationsThe findings show the important role of external process facilitation and how a 3PL contributes to value creation in a triadic relationship.Originality/valueResearch based on a triadic product returns chain is a unique dimension of this study.