For successful operation of closed-loop supply chains, product acquisition from customers plays a key role. Most cases presented in the literature so far have looked at products that still have a considerable marginal value of time or short life cycles. In such cases, it seems more likely that customers would return products at the end of their life cycle. But for a wide range of products such as apparel, the opposite is the case. This paper presents a classification of products for end-of-life acquisition based on the marginal value of time and the product lifetime. In a second stage, transaction cost economics are discussed to evaluate the behaviour of end-customers regarding end-of-life returns. A modified version of the transaction cost analysis is taken up, which allows an assessment of the transaction costs incurred by customers for end-of-life returns. This will show that low transaction costs are vital for acquiring products at the end of their life. The case of ECOLOG is used to explore related issues and discuss the importance of including the final customer in planning such product return channels.
Supply chain management and closed-loop supply chain management (CLSCM) have developed into established concepts in recent years. The related material cycles and product returns form an important part of all related processes with high potential for reducing environmental burden. The paper proposes a framework for (environmentally triggered) closed-loop supply chain management, spanning three different levels: the societal or governance, the chain and the actor level. Within each level, a set of activities or processes can be identified. Taken together, the levels allow a comprehensive analysis of a closed-loop supply chain system. This is illustrated building on two case studies in the textile and apparel industry, where closed-loop supply chains have been designed to take specific apparel products back. The case studies are analyzed against all three levels and allow exemplification of related challenges and interrelations among the three levels. The three levels contribute to the further comprehension of the multiple issues having to be taken into account for successfully implementing closed-loop supply chains.
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