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The Challenge of Closed-Loop Supply Chains

Author

Listed:
  • V. Daniel R. Guide

    (Department of Supply Chain and Information Systems, Smeal College of Business Administration, Pennsylvania State University, University Park, Pennsylvania 16802)

  • Terry P. Harrison

    (Department of Supply Chain and Information Systems, Smeal College of Business Administration, Pennsylvania State University, University Park, Pennsylvania 16802)

  • Luk N. Van Wassenhove

    (Technology Management Area, INSEAD, Boulevard de Constance, 77305 Fontainebleau Cedex, France)

Abstract

Closed-loop supply chains differ significantly from forward supply chains in many aspects. These differences are not well understood in many contexts, and the situation is complicated by many types of product returns. Progress is slow since closed-loop supply chains are rarely considered as value-creating systems, and much of the focus is on the operational aspects, rather than the larger strategic issues. Interest is growing in the US because of the potential profitability and in the European Union because of legislation. New business models need to be developed by joint cooperation between industry and academia that take a life-cycle approach to products.

Suggested Citation

  • V. Daniel R. Guide & Terry P. Harrison & Luk N. Van Wassenhove, 2003. "The Challenge of Closed-Loop Supply Chains," Interfaces, INFORMS, vol. 33(6), pages 3-6, December.
    • Handle: RePEc:inm:orinte:v:33:y:2003:i:6:p:3-6
    DOI: 10.1287/inte.33.6.3.25182
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