Consumers and Product Returns in Reverse Supply Chain: A Literature Review
Article Details
Pub. Date
:
Dec, 2015
Product Name
:
The IUP Journal of Supply Chain Management
Product Type
:
Article
Product Code
:
IJSCM31512
Author Name
:
Siddhartha Kushwaha
Availability
:
YES
Subject/Domain
:
Strategic
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:
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No. of Pages
:
10
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Abstract
Consumers are the starting point of a reverse supply chain. They act as supplier of raw material to value adding activities and reverse supply chain activities such as remanufacturing and recycling. Though reverse supply chain literature acknowledges the significance of consumers, the degree of influence of consumers on the reverse supply chain is still unexplored. The study explores the role of product-related and environment-related factors on product returns from consumer through an extensive survey of literature.
Description
The raw material to reverse supply chain is product returns from consumers. The product
returns occur often at the end of usage of product by consumers. The products can also
be returned to manufacturer due to warranty clause, product exchange drives and
mandatory regulatory reasons. The consumers reside at dispersed locations. It is posing a
challenge for manufacturers to collect the products profitably. Once products are returned
to manufacturer, it can undergo any one of the product recovery processes which are
remanufacturing, refurbishing, recycling and cannibalization.
Remanufacturing is the process by which a used product is completely disassembled,
repaired, obsolete components are replaced and contemporary enhancements are
incorporated in the product. Refurbishing is the process of restoring a product to its
original condition without any modifications so that the product meets the original
functional requirement. Recycling is the process of breaking down the used product into
basic constituent parts and then using the constituent parts in manufacturing new
products. Cannibalization or part harvesting is the process in which only the reusable
quality module or parts are retained and subsequently reassembled into products. The
selection of the recovery process is primarily driven by the condition or quality of the
product returns. The quality of returned product depends on the product usage habit of
consumers. Hence, identification of variables which can be used to obtain used product
from consumers would be of use to the manufacturers for profitable product recovery or
alternatively cost-saving in the process.
Keywords
Supply Chain Management Journal, Product Recovery Management (PRM), Original Equipment Manufacturer (OEM), Product Life Cycle (PLC), Consumer Behavior (CB), Consumers, Product Returns, Reverse Supply Chain, Literature Review.