How the reverse supply chain enables original equipment manufacturers to compete on low price

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    Abstract

    Low price is perhaps the most widely present competitive parameter forcing firms to continuously reduce their operating costs. While much literature has investigated how firms can use their reverse supply chain (RSC) processes to comply with regulations or offer RSC-enabled product-attached services, the purpose of this paper is to examine the relationship between the firm’s RSC processes and overall operating costs. The paper asks the question of how a firm’s RSC processes enable continuous operating cost reductions. The paper’s research method combines a literature review of known RSC-enabled cost reduction opportunities with a multiple case study that explores unknown opportunities. The most used cost reduction opportunity among the six firms in the study’s case sample is reducing operating costs by replacing purchasing of virgin materials and internal production with recovery of used products returned through the firm’s RSC.
    Original languageEnglish
    Title of host publicationProceedings of the 1st International EurOMA Sustainable Operations and Supply Chains Forum
    Number of pages9
    Publication date2015
    Publication statusPublished - 2015
    Event2nd International EurOMA Sustainable Operations and Supply Chains Forum - ESADE Sant Cugat Campus, Barcelona, Spain
    Duration: 23 Mar 201524 Mar 2015
    Conference number: 2

    Conference

    Conference2nd International EurOMA Sustainable Operations and Supply Chains Forum
    Number2
    LocationESADE Sant Cugat Campus
    Country/TerritorySpain
    CityBarcelona
    Period23/03/201524/03/2015

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