7. Conclusion
This paper identifies the key impact areas of the reverse supply chain for supply chain executives to focus upon by studying the driving forces for reverse supply chains as well as the barriers for effective implementation of reverse supply chains. This knowledge serves as a guide for choosing the right disposition strategy for products across industries. Choosing the right disposition strategy provides an opportunity to improve business efficiency at a time when the marginal cost of improvement in forward supply chain operations has been rising. Effective returns management offers various sources of revenue from auctions, refurbishments, recycling, and more. The reverse supply chain, offers a wealth of actionable intelligence that can be employed to improve product design, process design, and operations. In order to improve the efficiency of a reverse supply chain and address market and nonmarket drivers, a company has to understand which areas of its business are affected by returns and recycling, and where it should therefore be focusing its efforts. Depending on the type of product involved, several disposition options, such as auctions, donations, redistribution, repair, refurbishment, recycling, incineration, landfill disposal, and energy generation can be chosen in parts or as a whole. By making wise disposition choices and routing the returns accordingly, the reverse supply chain can be transformed from a cost center to a revenue source. The gate-keeping choice, (who handles returned goods, and in what manner) identified by Lambert et al. (2011) is dictated by both financial considerations and nonfinancial considerations like regulations and brand equity.
