Using Supply Chains to Create Value for Customers

Read this chapter. Think about the processes and key components involved such as costs, outsourcing, social responsibility, environment, planning, and inventory control. Watch the video clips for Who Ya Gonna Call and Amazon Fullfillment. Answer the review questions at the end of each section.

Track and Trace Systems and Reverse Logistics

KEY TAKEAWAY

Being able to trace products helps a company anticipate events that could disrupt the supply chain, including shipping mistakes, bad weather, and accidents so they can be averted. Most shippers have track and trace systems that can track product loads. Tracking individual products, especially after they are combined to make other products, is more difficult.

Consumers are more interested than ever in knowing where their products come from - particularly when there is a contamination problem with an offering. Reverse logistics is the process of running damaged and defective products and scrap materials backward through the supply chain to extract value from them. Companies are increasingly employing reverse logistics not only to save money but for environmental reasons.