Exploring the relationship between quality management and risks in closed-loop supply chains

Abstract

Supply chain risks are highly unpredictable and may affect the entire spectrum of supply chain actors, with direct implications on cost, product/process quality, lead time, company’s image and profitability. Existing literature in supply chain risk management (SCRM) has not sufficiently addressed risk management in the context of closed-loop supply chains (CLSC) and has not thoroughly investigated potential linkages between risks and quality management (QM). In our paper, we develop a typology of CLSC risks and explore the potential contribution of QM systems, principles and practices in dealing with CLSC risks. Various QM tools can be employed to reduce the occurrence or impact of risks associated with reconditioned or returned products. Unfortunately, certain important risk categories are difficult to mitigate by means of QM. Indicative examples are the consolidation of return flows to remanufacturers, inefficient marketing techniques for recovered products, as well as uncertainties related to quantity and timing of returns.