What is the term for the process where a manufacturer takes back products to reuse or recycle, reducing waste?

The correct term for the process where a manufacturer takes back products to reuse or recycle, thereby reducing waste, is the closed-loop supply chain. This concept is centered around creating a sustainable system where products are designed and managed to allow for their return to the manufacturer. In a closed-loop supply chain, the materials from used products are reintegrated into the production process, minimizing waste and resource consumption.

This approach enhances sustainability by ensuring that materials remain in use for as long as possible, preventing them from ending up in landfills. It emphasizes the importance of not only thinking about the forward flow of goods from producer to consumer but also the backward flow, where the end-of-life products are collected, processed, and reintegrated into new products.

The closed-loop system contrasts with an open-loop supply chain, where products are disposed of after their lifecycle without significant recycling or reuse initiatives. While return logistics is part of the process of managing the returns of products, it does not fully capture the essence of the closed-loop supply chain, which encompasses a broader sustainable approach. The circular economy combines concepts related to sustainability and closed-loop processes, but it is a larger framework that includes multiple strategies beyond just the taking back of products.