The Impact of Reverse Logistics on Operational Performance

Abstract

Logistics management is an integrated part of supply chain management. Reverse logistics is for all operations related to the reuse of products and materials. It is "the process of moving goods from their typical final destination for the purpose of recycling, reuse, capturing value, or proper disposal. Remanufacturing and refurbishing activities also may be included in the definition of reverse logistics." Growing green concerns and advancement of green supply chain management concepts and practices make it all the more relevant. The number of publications on the topic of reverse logistics has increased significantly over the past two decades. This research paper investigates the relationship between reverse logistics operation, environmental performance, and competitive advantage, financial and operational performance of pharmaceutical firms located in India. This research paper has been adopted simultaneous regression method to test hypothesis. The results indicate that all endogenous (operational, environmental and financial performance) except competitive advantage are positively and significantly correlated with reverse logistics operations, while competitive advantages and reverse logistics operations have insignificant relationship. In addition, due to adoption of reverse logistics, firms may increase their overall performance and increase the efficiency of manufacturing processes due to elimination of waste. Furthermore, implementing reverse logistics operations, more opportunities to firms to improve their products' quality and reduce their end-to-end supply chain cost will take place.

Effects of Reverse Logistic Practices on the Performance of Fast Moving Consumer Goods Companies in Kenya

“…A comprehensive literature review on the effects of Reverse logistic practices on organizational performance by (Ogunlela, 2018;Joyce et al,2017;Kimotho, 2017;Dube et al, 2016Mugo, 2017;Pourhejazy & Kwon, 2016;Kaynak et al,2014,Burnard &Tarzes,2015, Akabane et al,2018, Katowice, 2017,Pinto et al 2009,Kiilu,2018, Mwaura et al, 2015, Yu et al, 2018,Salim,2015Somuyiwa et al, 2014, Mao & Yang ,2014, shows that most of the research has focused on the role of reverse logistics on environmental sustainabilities, leaving out the effects of reverse logistics on the performance of organizations. There is minimal research on the Reverse logistic practices on organizational performance.…”

“…Reverse logistics involve all operations related to the reuse of products and materials. It is "the process of moving goods from their typical final destination for the purpose of recycling, reuse, capturing value, or proper disposal, (Yu, Tianshan, and Muhammad, 2018). Business managers have increasingly begun to realize the need to be environmentally accountable for their activities, (Mwaura et al, 2016).…”

“…Reverse Logistics, according to (Yu et al, 2018), is understood as the process of planning, implementing and controlling, including raw materials and discarded products, in which the final destination is the pursuit of return to business cycle. Reverse logistics plans, operates and controls the logistics flow of post-sale and post-consumer products to the business cycle, promoting economic, ecological and legal values (Leite, 2009, Yu et al, 2018.…”

“…Reverse Logistics, according to (Yu et al, 2018), is understood as the process of planning, implementing and controlling, including raw materials and discarded products, in which the final destination is the pursuit of return to business cycle. Reverse logistics plans, operates and controls the logistics flow of post-sale and post-consumer products to the business cycle, promoting economic, ecological and legal values (Leite, 2009, Yu et al, 2018. The best example for understanding reverse logistics concept is beverage firms such as Coca Cola or PEPSI, they distribute their beverages to distributors or retailers and after couple of days, firms again distribute new filled bottles of beverages and collect empty bottles for refilling.…”

“…Usually firms give incentive to consumers for "returning empty bottles" and also give some percentage to retailers for their efforts to motivate consumers to return empty bottles, ( Kaynak et al,2014). The primary goal of reverse logistics is to reduce harmful effects on environmental sustainability and also increase efficiency of supply chain with reduction of costs, (Yu et al, 2018) The empirical literature reviewed demonstrated that, although a number of studies have been conducted on reverse logistics, there was very little study done on the effects of reverse logistics practices on organizational performance, furthermore the studies done on reverse logistics practices were incomprehensive and did not address constructs such as Product Recalls, Manufacturing Returns, Reuse, Recycling ,Repackaging and the influence of Salvage and scrap disposal on the performance of firms. This research study generated constructs which formed the conceptual framework on which the study was anchored.…”