The Conception of Designing Reverse Flows in Supply Chains

Abstract

The article examines the essence, structure and formation of management of the reverse flows processes in supply chains; the main directions and content of return flows in logistic systems and supply chains are determined; the concept and content of reverse logistics and logistics of return flows are defined. The essence of the process of reverse flows management in accordance with the reference model of business processes in the SCOR supply chains is researched. The application of a logistic approach to management of reverse flows has determined a separate sphere of logistics – reverse logistics. Enterprises in the supply chain should offer consumers an effective return management service, which allows minimizing the potential deterioration of relations with consumers to manage the process of returning to the supplier in case of expired goods or excess inventories. To carry out this process, it is necessary to properly study communication channels and business processes in order to create an effective feedback system in after-sales service to minimize the cost of return. A significant number of enterprises consider reverse logistics processes a negative phenomenon and do not focus on managing them, although enterprises that implement an effective reverse logistics process can get a number of significant advantages. They include: reducing costs, increasing the speed of customer service, maintaining the customer loyalty. The developed model of business processes allows to structure the tasks of reverse flows management and get an effective tool for the implementation of the SCOR-model of supply chains management.

Keywords

• supply chains management
• reverse material flows
• reverse logistics
• scor business process reference model