Tilburg University, The Netherlands
Title: Increasing Your Rate of Return with Closed Loop Supply Chains
Harold Krikke is a member of the Department of Organization and Strategy at the Tilburg University since 2004. He first studied Industrial Engineering and Management at Twente University of Technology in Enschede. At the same university he completed his Ph.D. in 1998 in the field of reverse logistics. Since then, he works as an assistant professor at Erasmus University Rotterdam and also as a business consultant at Tebodin consultants. As of 2002 he is a senior researcher and project manager of CentER Applied Research and later became Associate Professor at the faculty Economics and B.A. of Tilburg University.He is the Chaired Professor of Closed loop supply chain at the Open University Netherlands as of 2008 and also an advisory professor of Beijing Jiaotong University as of 2009. His research interests include reverse logistics, the integration of return flows in supply chains, the relationship with product life cycle management and the possible gains in supply chains through corporate planning.
The field of closed-loop supply chains is is gaining momentum, but still mostly focuses on cost minimization of reverse logistics processes. That is remarkable as value creation is key in mainstream supply chain management.
Sustainability goals (reduction of resource consumption, pollution, greenhouse gasses etc.) are most effectively addressed when considered a business opportunity (Krikke & van der Laan, 2010). Justifiably, closed-loop supply chain (CLSC) management is defined by Guide and Van Wassenhove (2006), as "the design, control and operations (of a system) to maximize value creation over the entire life cycle of a product with dynamic recovery of value from different types of returns over time".
Customer value creation occurs through the offering of new and/or better services with improved proximity to the customer. Environmental value creation occurs through the reduction of environmental impact compliance. Sourcing value comes via cheaper sourcing through reuse and recycling.
This presentation explores how companies slowly change their approach from cost minimization to value creation. A number real life case examples are given. Finally some results from a global survey are presented, suggesting how third party service providers can add value to the closed loop supply chain by current and newly developed services.