Consumer Returns Management 2019

October 21 - 23, 2019

Hyatt Regency Austin, TX

Value Chain Analysis

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The increased emphasis on the return, reuse and repair of products that have already been sold to the end user and the resultant growth of the reverse supply chain as a factor in corporate operations, has transformed the way businesses handle their products. A major component of this change has been the use of value chain analysis to improve the productivity of the reverse supply chain process and other aftermarket activities.

When considering the value chain of the company’s activities, it is important to analyze the reserve supply chain operations to ensure that they are producing the best value possible. Such an analysis would include the cost effectiveness of the overall process, whether or not it would be more economical to outsource parts of the operation, and how the reverse supply chain helps in maintaining customer loyalty and contributes to increasing the firm’s market share.

For example, a value chain analysis of the process used to dispose of goods returned by customers may determine that it is more effective to outsource equipment disposal or recycling to an outside vendor. In other cases, the reverse supply chain may require an increased emphasis on the training of company representatives and technicians, in order to promote consumer loyalty.

In both of these cases, it is important to note that the process of analyzing the value chain focuses on the entire system of reverse logistics, rather than examining any single part in isolation. This is important for the effective modification of a company’s reverse supply chain in order to maximize its efficiency and the consequent improvement in productivity.

In addition to increasing productivity within already existing components of the logistics systems, an effective analysis of the value chain can aid in determining if their are other opportunities that the company should explore. For example, if it is determined that a large number of customers are taking advantage of environmentally friendly disposal programs, it may be advantageous to make such programs part of the standard sales package to improve consumer relations.

The modern reverse supply chain has become just as vital as the initial marketing process. As such, it must be continually evaluated to ensure that the reverse logistics process remains competitive with other businesses. An effective process of analyzing the value chain is thus indispensable to businesses of all sizes, especially in today’s competitive business world.