A structural framework for closed‐loop supply chains

Purpose – The concept of the customer order decoupling point (CODP) has been used in manydifferent contexts as an important structural concept for the traditional forward supply chain. TheCODP is rarely explicitly applied in reverse supply chain management and the purpose of this paper isto show that the CODP can be an important corner stone of a framework for analysis of the closed-loopsupply chain containing both forward and reverse material flows.Design/methodology/approach – Conceptual similarities are identified using analogies betweenforward and reverse supply chains. First, the concepts are discussed in their original context offorward flows and thereafter the concepts are applied on reverse flows. Finally, a holistic closed-loopmodel is established.Findings – The conventional CODP framework for forward flow supply chains can be extended tocover also reverse material flows and therefore providing a foundation for a more comprehensivediscussion of closed-loop supply chains useful in both education, research, and industrial applications.Using the suggested extended framework it is possible to identify nine fundamental supply chainconfigurations.Practical implications – Differentiating between demand driven and forecast driven activitiesplays a critical role in practical supply chain management and this paper highlights that this approachalso can be applied to closed-loop supply chains and therefore extending the reach of the toolboxpreviously developed for the forward supply chain.Originality/value – The concept CODP has not previously been comprehensively treated for theclosed-loop supply chain and this paper provides a foundation for establishing a strategic structuralframework for discussing issues such as lean vs agile and balancing efficiency and responsiveness in amore comprehensive context involving also reverse material flows.

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