Opportunities of supply chain cooperation to influence the volume of return finished goods flows

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MAGAZINE №6 (67) December 2014


CATEGORY Reverse logistics Green Logistics& Supply Chain Logistics integration and coordination Planning the supply chain


Retun flows are becoming of larger interest to supply chain managers as “green logistics” awareness and opportunities for recycling and use of returned goods and materials grow. Reverse logistics definition fully corresponds with the definition of logistics as it is except that it refers to the material flow running from end consumers to suppliers. So, one might suggest that cooperation in return flows management would give the same benefits as cooperation in direct supply chain. And, above all, it must influence the volume of return flow, that is, ability to maximize or minimize it depending on the constituents of the flow and business goals. The article refers to the options allowing to include issues of the desired return volumes management into existing supply chain cooperation practices. It demonstrates that mostly cooperation helps to minimize probability of unplanned returns emerging, and proposes that it is most advisable to include return flows issues into the existing cooperation processes rather than start new cooperation basing on return flows.


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