Supply chain management: In relation to question number 5, what are the possible reasons why a company uses this kind of
return business model?

Question

In relation to question number 5, what are the possible reasons why a company uses this kind of
return business model?

liv da · Accepted Answer

It is cheaper to outsource, as compared to when a company (or Ikea) manages the return
themselves

liv da · Answer

-3PL companies could be more specialized in managing the return as compared to manufacturing
company themselves.

liv da · Answer

- Manufacturing company might want to focus more on the core strength of the company or other
company activities.
IKEA uses Open-loop business model because a 3PL company/operator, is responsible for the return
logistics of furniture.

Supply chain management

In relation to question number 5, what are the possible reasons why a company uses this kind of return business model?

It is cheaper to outsource, as compared to when a company (or Ikea) manages the return themselves

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