Growing concern for durable product manufacturers, how to manage the products that they produce when they reach the end of life (EOL). In particular, attention is motivated by a growing number of countries in Europe and East Asia, which adopted legislation that imposes greater responsibility on manufacturers to manage their EOL products. Even in non-regulated markets, however, some manufacturers participate in the product recovery to reduce production costs, enhance brand image, to meet changing customer expectations, protect aftermarkets, and preempt pending legislation or regulations. Explains when manufacturers need to engage in the recovery of the product through partnerships, alliances, and vertical integration, and when they should leave this task to an independent company. Technologies that improve the performance of product recovery, the level of uncertainty associated with reverse logistics, a variety of options related to the production, the uniqueness of recovered assets, and the desire to avoid dependence on other organizations, are key factors that shape the industry organizations EOL product recovery. "Hide
by Michael W. Toffel Source: California Management Review 23 pages. Publication Date: February 1, 2004. Prod. #: CMR280-PDF-ENG