Page 5 - Logistics News July/Aug 2018

Thought Leadership

Product return processes:

To integrate or not to integrate?

By Wesley Niemann

Supply chain integration is a concept that aims to improve supply chain and operational
performance by enhancing the exchange of critical supply chain information whilst
improving the synchronisation of its business processes.

PRODUCT RETURNS and reverse logistics South African consumer electronics retailers.
processes are becoming an increasingly important Supply chain integration can take place
responsibility for retailers who are seeing constant internally as fi rms attempt to break through
increases in the levels of product returns and the functional boundaries by aligning processes,
added complexity in the processes that it involves. cultivating collaboration and driving the pursuit
Adding fuel to the fi re, the proper disposal of of fi rm-wide goals. External supply chain
the waste created by product returns is an ever- integration focuses eff orts on the collaboration,
increasing regulatory burden that these retailers sharing of information and alignment of
have to contend with. processes with customers and suppliers as
Supply chain experts at the University supply chain partners of the focal fi rm.
of Pretoria are confi dent that supply chain In their study, the researchers focused
integration is just the right tool to take the particularly on the information sharing activities,
sting out of these product returns processes for cross-functional processes and relational

6 July/August 2018 | Logistics News