Sustainable Closed Loop Supply Chain Management

The growing concern about sustainability (scarcity of resources, increasing landfills, global warming, etc.) has increased pressure on firms, customers and government to put more emphasis on closing supply chains. Closed loop supply chain management deals with forward processes (such as production, distribution, and use) as well as reverse processes such as recycling, remanufacturing, reuse, and energy recovery. Closing supply chains is an obvious way to obtain sustainability. For business, this means redefining production and logistic processes “There is no waste, only resources”

Abstract “Reuse of products, a feasible option also for small business”
(J. Venselaar)

Presently, the larger companies in specific sectors are known to practice reuse of products as an economically sound strategy: office equipment, copiers and printing machines, soft drink vending machines and coffee dispensing equipment. In our projects we found also many smaller companies which practice reuse because it is very profitable for them too. That varied from only incidental till nearly total reuse. That proves clearly it is not necessarily feasible only for larger companies.A simple approach has been developed to assist companies in determining the actual feasibility for reuse, the best options and the major obstacles: the ‘WARM approach’[1]. The contacts with small companies and the studies make clear what the advantages are for them but also where they need support. A short introduction of the approach will be given, with some characteristic results. Additionally an overview will be given of advantages and obstacles small companies encounter in practice, using as examples three companies which practice reuse already or have been convinced that it is indeed feasible and profitable.

Greenpeace is an international environmental organization working towards a sustainable balance between people and the environment, by research, consultation and actions. Firms might often be an obstacle on the way to this goal, but sometimes they appear to be an ally. These allies are firms trying to create a sustainable balance together with Greenpeace. But, what is a sustainable balance, and how to contribute as a firm?

The base for sustainability is the ‘precaution principle’: do not take action if there is no proof of safety in the short and the long term. Firms have to base their business policies on this principle. Often, new technologies are presented whereas later environmental pressure groups or the governments find out that dangers go along with these new technologies. The precaution principle prevents these unsafe technologies.

Another driver for sustainability is the producers responsibility for the external effects of their products. The producer is responsible for the impact on society and the environment during the whole lifecycle, i.e. the production phase, the use phase and the end-of-life phase.