Does closing the loop in your distribution chain really matter?

Does closing the loop in your distribution chain really matter?

Closing the loop may matter for some or all of your distribution points. The distribution chain is the path followed from the originator of a product or service to the end consumer. Closing the loop means starting over at the end of the distribution chain cycle.

Closing the loop allows you to not only achieve economic benefits, but may also provide critical data to:

• customer behaviors
• seasonal trends
• information about your competitors

​Closing the loop could also extend the lifecycle of your product and create a better experience for your customer.

Consumers, recyclers and manufacturers need to work together for a closed loop system to function correctly. The key is to understand the elements of your distribution chain and to close as many loops as possible to provide the benefits that you are after.

For shipping long distances or into other countries, closing the loop could be more costly and more difficult.  While it is not impossible, it does require careful study and strong execution in order to produce acceptable results.

Would you consider closing your loop for greater visibility to critical data? Why or why not? Let us know what you think by commenting below.

Post by: Rich Reiher, Vice President