Reverse supply chain improvement strategies for returnable packaging material

A case study at Prysmian Netherlands

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Abstract

Prysmian Netherlands as a cable producer uses a cable drum to deliver products to their customers. However, these customers do not always participate in returning this returnable packaging material (RPM). Customer willingness and reverse supply chain (RSC) visibility are mentioned as the main contributors. The study aims to develop improvement strategies and assess their impacts through a discrete event simulation (DES). The strategies consider the approach from logistics system design, technological implementation, and compliance policy. The findings suggest that an RPM with a high product residual value such as drums promises a high financial return if recovered. However, maintaining the returned drum condition is of the utmost importance to ensure the recovery operations are fruitful. Moreover, a shorter RL cycle time does have a substantial effect on the RSC efficiency.