Role of information technology and collaboration in reverse logistics supply chains

Abstract

Closed-loop supply-chain channels are distribution systems that include activities supporting both the forward flow of goods from the manufacturer to the consumer as well as the reverse flow from the consumer to the manufacturer. In this paper, we identify the reverse logistics supply-chain channels, identify problems that companies face when they handle product returns along these channels and present the critical role that information technology and collaboration can play to mitigate many of the problems and deficiencies.A key element in reducing uncertainties in the different stages of the reverse channel of a supply chain is access to accurate and timely information on the status, location, and condition of products moving about in the supply chain. It is imperative that firms operating in the reverse supply-chain channels collaborate to integrate and share information in a timely fashion. We present a case study based on our interaction with two major consumer electronics companies and demonstrate how the use of radio frequency identification device technology in a warehousing operation can reduce the overall distribution costs for the organisation.

Learning from Returned Products in a Closed Loop Supply Chain: A Systematic Literature Review

“…The type of informational value that has garnered the most amount of scholarly attention, by a wide margin, is the first type, namely operational information. This information is used to create value by increasing the effectiveness and efficiency of CLSC-related policies, such as return policies [28,58] and processes, for instance by predicting quantities [12,21,33,55] and quality [25] of product returns, improving inventory management [37], handling recalls [47], returns processing, and redistribution [57], especially with regard to time sensitive returns [14,24]. This information stems from quantitative operational [12] and transactional data [13,14,56,62] as part of the various CLSC processes.…”

“…These data are used to improve the efficiency of operations [18], improve operational decision making [15], for cost reduction [18], and to reduce uncertainty regarding returns quantities and quality [19]. Overall, increasing CLSC information visibility [24] and quality, both inside a firm as well as supply chain partners [26,27], has substantial benefits for CLSC management.…”

Incorporating logistics enterprise architecture: a diffusion of innovation perspective

“…In today's competitive environment, use of IT in support of logistics operations is not a nicety, but a necessity (Min 2006;Jayaraman, Ross, and Agarwal 2008). Therefore, firms often adopt a wide variety of IT to support various logistics functions within the firm (Gunasekaran, Ngai, and Cheng 2007).…”

Sharing information strategically in a supply chain: antecedents, content and impact

“…Increasing the level of information sharing among the members in a supply chain is necessary for improving its effectiveness (Sezen 2008) and efficiency (Jayaraman et al 2008). Although information is shared among businesses every day, sharing appropriately is not an easy undertaking in the business world.…”