Enhancing Product Recovery Value in Closed-loop Supply Chains with RFID
supply chains; industrial procurement; decision making; inventory control; industrial costs; RADIO frequency identification systems
Journal of Managerial Issues / PSU
Journal of Managerial Issues
Closed-loop supply chains' integration of the forward and reverse supply chains is an emerging area of interest as firms seek to reduce costs of returns, increase profits through value recovery and meet more stringent environmental standards. Closed-loop supply chains have a higher level of complexity than stand alone forward supply chains or reverse logistics networks due to the uncertainty in the timing, location, quantity and quality of returned goods. This uncertainty inhibits effective and efficient product recovery operations and hence has an adverse impact on the value of recovered products. A key to reducing the uncertainty in closed-loop supply chains is accurate and timely information. Radio Frequency Identification (RFID) technology has the potential to provide such information. The purpose of this article is to introduce how RFID is and can be utilized by the various participants in a closed-loop supply chain. We also describe how RFID can be used to enable decision making during the return process and to enhance the various value recovery options in a closed-loop supply chain. In addition, we provide direction for the implementation of RFID systems in closed-loop supply chains.