ISM Exam INTE Topic 2 Question 11 Discussion

Actual exam question for ISM's Supply Management Integration exam

Question #: 11
Topic #: 2

[All Supply Management Integration Questions]

MNO, Inc. is a national retail home goods chain formed of local franchisees. Each franchisee uses its own returns processing systems. A key advertising point for MNO is its liberal return policy, which is part of its overall focus on excellent customer service. While feedback from customers is positive regarding MNO's return policy, there have been inquiries as to why stores handle returns via different processes. MNO's supply manager suggests the implementation of a reverse supply chain to deal with this issue and possibly yield cost enhancement opportunities. In order to implement this, which of the following is the FIRST course of action the supply manager should take''

ADefine a consistent return process and integrate it into the forward supply chain

BHire an external returns specialist to monitor the situation

Show Suggested Answer

Suggested Answer: A

Implementing a reverse supply chain requires first defining a consistent return process that can be integrated into the existing forward supply chain. This ensures that all franchisees follow the same procedures for handling returns, which enhances efficiency, customer satisfaction, and potentially reduces costs. Standardizing the return process also allows for better tracking and management of returned goods, improving overall supply chain performance. By addressing this foundational step first, MNO, Inc. can ensure a smoother implementation of the reverse supply chain. Reference:

* Rogers, D. S., & Tibben-Lembke, R. (2001). An Examination of Reverse Logistics Practic-es. Journal of Business Logistics, 22(2), 129-148.

* Blanchard, D. (2010). Supply Chain Management Best Practices. John Wiley & Sons.

by Tasia at Sep 12, 2024, 06:45 PM

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Robt

10 days ago

I think the supply manager should focus on cost enhancement opportunities, so defining a consistent return process makes sense.

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Lenna

14 days ago

Ooh, the supply manager is really thinking outside the box with this reverse supply chain idea. But let's not get ahead of ourselves, gotta start with the basics first.

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Reena

2 days ago

That makes sense, having a consistent process would definitely help streamline things.

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Reena

4 days ago

A) Define a consistent return process and integrate it into the forward supply chain

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Wayne

19 days ago

I see your point, Felicitas. However, I think establishing a consistent process internally should be the priority.

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Xuan

25 days ago

Ah, the age-old battle between consistency and chaos. A unified return process is the logical choice. Unless of course, you want your stores to become the wild west of customer service.

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Lewis

6 days ago

A) Define a consistent return process and integrate it into the forward supply chain

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Alecia

26 days ago

I agree, option A is the way to go. Hiring an external specialist feels like a waste of resources when the problem can be solved internally.

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Felicitas

29 days ago

But wouldn't hiring an external returns specialist also be beneficial?

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Refugia

1 months ago

A consistent return process is the way to go. Integrating it into the forward supply chain makes total sense. Anything else would just be a band-aid solution.

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