Closed-Loop Supply Chain (Reverse Supply Chain) Definition
A closed-loop supply chain is a type of supply chain in which the final disposal of the product or material is integrated back into the manufacturing process. In other words, it’s a system where waste = food.
The term ‘closed-loop’ refers to the fact that there are no waste products in this type of system – everything is reused or recycled. The goal of a closed-loop supply chain is to create a sustainable system that doesn’t rely on virgin materials.
There are many benefits to implementing a closed-loop supply chain, including reducing waste, saving money, and reducing your environmental impact. In addition, closed-loop systems are often more efficient than traditional linear supply chains (where products are simply thrown away after use).
If you’re interested in implementing a closed-loop supply chain in your business, there are a few things you need to keep in mind. First, you’ll need to design your products and packaging for easy disassembly and recycling. Second, you’ll need to establish partnerships with suppliers who can provide recycled materials. Finally, you’ll need to set up infrastructure for collecting and processing waste materials.
