Define and discuss the closed loop and reverse logistics systems, including examples.

Many terms are used in describing the activities associated with managing reverse flows in a supply chain. Two of these terms are used more frequently and for the purposes of this text are defined as follows:
 Reverse logisticsThe process of moving or transporting goods from their final forward destination for the purpose of capturing value or for proper disposal.
 Closed-loop supply chainsDesigned and managed to explicitly consider both forward and reverse flows activities in a supply chain.

While these two terms are sometimes used interchangeably, they do have differences. Reverse logistics involves the processes for sending new or used products back up stream for repair, reuse, refurbishing, resale, recycling, scrap or salvage. The items in a reverse logistics system are usually returned to a central location for processing.

The closed loop supply chain, on the other hand, is explicitly designed and managed for both flows. In the closed-loop supply chain, the manufacturer is proactive in the processes, and the emphasis is on reducing cost and capturing value. The ultimate goal is for everything to be reused or recycled (i.e., nothing wasted).

Examples of closed-loop supply chains are Xerox's program for cartridge returns, the original system for the rental movies by Netflix, and the system designed by RedBox. Kodak's program for single-use cameras and the closed-loop supply chain for commercial tire retreading are two additional examples.