Closing the Supply Chain Loop: Reengineering the Returns Channel Process

Abstract

Business process reengineering applied to the returns channel is becoming increasingly important as a result of marketplace requirements for productivity and customer satisfaction. This article provides an overview of a reengineering approach to “reverse logistics” and presents methodologies which may be helpful to management. Several examples from the literature are provided as illustrations of issues involved in reengineering the returns channel process and measuring return to available (RTA). The core processes of the Xerox Business Process Architecture (XBPA) are studied to identify the issues involved with solving the business issue by process rather than with functional strategies. Issues associated with business problem benchmarking as an input to reengineering and the key aspects of managing by process are also presented.