ABSTRACT
This chapter explores issues that are, for many supply chains, becoming more important; these deal with the "return loop". When the forward supply chain has delivered a product to an end user, merchandise, for varying reasons, journeys back through the reverse or return supply chain. The return loop is also a service element that is important to many customers and end users. Convenient returns reduce purchase risk when buying from a retailer. Customers may also place considerable value on aftermarket service for equipment repair and maintenance. For durable products, manufacturers and retailers find that aftermarket services are more profitable than initial sales. Retailers or original equipment manufacturers (OEMs) price many products lower in the beginning because the real source of profit will come from the aftermarket. Return-loop opportunities abound for the many retailers and the trading partners that serve them.
