Strategies to optimize return on investment (ROI) through effective reverse supply chain programs

According to a study conducted by Dr. Dale Rogers, Professor of Supply Chain Management of University of Nevada, US, companies spent over $35 billion a year to handle reverse supply chain problems and issues in 2000. As indicated by Gartner Group (May, 2001), returns can erode 100% of the profit margin on the cost of goods sold if not managed effectively and efficiently. Supply-Chain Services, Inc. (SSI) manages national and/or regional product return programs for Fortune 1000 OEMs. We specialize in industries such as telecommunications, consumer electronics and industrial electronics. We have acquired considerable knowledge and experience in structuring a viable reverse supply chain model that maximizes OEM's return on investment (ROI). In this paper, we share this model with the industry.