Introduction
There is a need to implement effective supply chain management strategies using technology and innovation that change conventional approaches to businesses, economics, ecology, and social aspects of life. Return in the closed-loop supply chain is one such innovative approach that seeks to reduce losses and waste and increase the resilience of the economic system (Kaczmar & Bányai, 2021). This paper aims to discuss the process of return in a closed supply chain cycle, its key elements, advantages, and problems arising when it is implemented.
How the Closed Loop Supply Chain Works
The closed-loop supply chain process involves recycling and reusing waste and materials generated by the production and consumption of goods. This approach reduces waste, minimizes resource losses, and reduces environmental impacts (Kaczmar & Bányai, 2021; Pazhani, 2021). The closed-loop return process consists of returning waste and materials to production, where they are used to create new products and services.
Steps in the Closed Loop Return Process
In this context, the return process in the closed loop chain is based on some specific elements and steps. Organizing a waste collection and sorting system is an important step in the closed-loop return process. It is important to consider all the types of waste and to determine which ones can be returned to production. Then, wastes and materials that cannot be used in their original form must be recycled. Depending on the type of material, reprocessing may involve mechanical, chemical, or thermal treatment (Pazhani, 2021).
Waste Collection and Recycling Methods
After waste and materials have been recycled, they need to be returned to production and used to create new products or components. This process requires close cooperation between producers, suppliers, and processors to ensure efficient use of resources. After new products have been manufactured from recycled materials, they are sold to end users (Kaczmar & Bányai, 2021). It is important to inform consumers of the benefits of such products and to encourage them to choose sustainable products.
Benefits of Closed Loop Supply Chain Returns
Returning to the supply chain cycle offers several benefits for business and society. Thus, the closed cycle reduces waste and resource loss, which helps to reduce a negative environmental impact. The ability to reuse materials reduces the cost of acquiring new resources and increases the efficiency of using existing resources. Furthermore, companies that actively implement closed loops can gain a competitive advantage in the market as consumers increasingly value sustainable goods and services.
Challenges in Implementing Closed Loop Systems
However, recycling waste and materials can be complex and costly, especially for new and complex materials. In addition, establishing an effective return system requires significant changes in the company’s organization and coordination among all actors in the supply chain (Pazhani, 2021). Thus, the return process in the closed-loop supply chain is associated with both advantages and disadvantages.
Conclusion
Returning to the supply chain cycle is an important and relevant approach to effective waste and resource management. This process reduces losses and waste, saves resources, and increases the business’s sustainability. However, implementing such a system requires overcoming several technological and organizational challenges and cooperation between the various actors in the supply chain. In this context, the future of returns in the supply chain cycle depends on developing new technologies, innovative solutions, and the support of governments and society.
References
Kaczmar, I., & Bányai, T. (Eds.). (2021). Green supply chain: Competitiveness and sustainability. IntechOpen.
Pazhani, S. (2021). Design and analysis of closed-loop supply chain networks. CRC Press.