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Closed-Loop Production Supply Chain Model and SAP eCommerce

As you implement initiatives that promote sustainability, it makes sense for your business to find solutions and initiatives to reduce waste, while gaining profit from reverse and forward supply chains. Using a closed-loop production supply chain can be the solution you need.

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Closed-Loop Production Supply Chain Model and SAP eCommerce

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  1. Closed-Loop Production Supply Chain Model and SAP eCommerce As you implement initiatives that promote sustainability, it makes sense for your business to find solutions and initiatives to reduce waste, while gaining profit from reverse and forward supply chains. Using a closed-loop production supply chain can be the solution you need. This way, you can minimize waste and bring previously discarded goods back into your value chain, particularly those that can be dismantled for parts, repaired, or resold. Like most production processes, this model requires careful production and demand planning, as well as business forecasting. SAP eCommerce may be able to help with that. Also known as up-cycling, closed-loop production is a process that may help your business appeal to the new generation of customers, particularly the Millennials and Gen Z. It shows that you care about the environment, while providing transparency and visibility into your production practices. Consumers are likely to choose you when they know that your brand supports their causes and practices. The value of a closed- loop production supply chain model extends beyond your bottom line as it can pave way to global sustainability. SAP eCommerce is a great tool that can work with your closed-loop production supply chain model. With an intelligent platform for supply chain and manufacturing planning, you can reduce the number of defects, minimize obsolescence, and improve the whole production process. It lets you coordinate manufacturing operations from inventory to material requirements, while making sure that plans are up-to-date based on real-time data from your plant floor, supplier network, and business. With SAP eCommerce, you can generate efficient plans for a complex assembly process, especially where capacity planning, production, material requirements, machine models, factory layout, material, and routing are concerned. It helps optimize material flow and production too, so you can implement efficient and flexible manufacturing processes with methods like just-in-time replenishment, lean control and continuous improvement. SAP’s solution can also help the closed-loop production supply chain model by boosting quality and lowering costs, as it encourages collaboration between manufacturing and R&D teams.

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