Reverse logistics in the supply chain has been an essential part to monitor the life-cycle of the products after the arrival of the product to end consumer. In addition, it would significantly integrate the creation of product value after its expiry through reusing or appropriate disposal of the product after being used. As put forwarded by Sarkis et al. (2010), reverse supply chain logistics’ strategic application could enhance the reclamation of the products that have ended their significant life. Furthermore, the impact on the environment has to be a significant concern for organizations based on recycling, reclamation, and reuse in order to save costs, landfill space, and fuel. Reverse logistics integrates physical shipping of the returned product, quality testing in order to identify flaws, documentation of any issues and lastly restocking, dissembling, recycling or repairing of the returned product. As stated by Salema et al. (2010), the responsibilities of good producers have increased due to societal awareness which requires effective integration of reverse logistics. In addition, at present times the competent framework and operation of supply chains based on return flows have been a serious concern for several organizations.
Fig: 1 (Reverse logistics)
Several research studies have put forwarded significant strategic design for enhancing reverse logistics in order to maintain sustainability. As opined by Jack et al. (2010), reverse logistics have important capabilities based on cost savings as well as integrate antecedents for its successful implementation. Furthermore, based on literature the idea of reverse logistics has gained major consideration from scholarly authors due to its cost-saving nature by enhancing the sustainability of companies. On the other hand, Lee and Lam, (2012) stated that there is a significant interrelationship between operation, strategy, and marketing based on business value for the consumers as well as the efficiency of reverse logistics. In addition, sustainable strategies and eco-friendly measures are the primary environmental conscious need which requires efficient reverse logistics design. In fact, Alumur et al. (2012) stated that profit maximization modeling framework for reverse logistics network needs to be integrated by the organization in order to mitigate complex problems such as determination of appropriate sites, collection centers, recycling plants or remanufacturing facilities. Based on such context, it can be stated that reverse logistics in supply chain management is a significant aspect in order to reduce environmental problems as well as to maintain sustainability while delivering effective services to the customers while maintaining organizational standards.
As stated by Rogers et al. (2012), modeling techniques are also significant to enhance the effectiveness of reverse logistics followed by efficient supply chain management. Also, modeling techniques have significant opportunities to reduce the issues of reverse logistics that are faced due to the simple return of consumer products to a retailer. Carbon footprints due to poor management of reverse logistics have been a significant issue which requires effective modeling techniques for maintaining environmental sustainability, Sundarakani et al. (2012). On the other hand, Akdo?an and Co?kun, (2012) suggested that there are significant drivers of reverse logistics in order to maintain a sustainable environment by companies. In addition, pressure from both consumers and government to attain efficient framework for reverse logistics has been critical for manufacturers. A survey performed on Hong Kong businesses by Ho et al. (2012), provided significant evidence that human resource and financial factors are essential factors that influence the execution of reverse logistics in organizations. In addition, tangible resources do not have much influence. In contrary Li and Tee, (2012), stated that each influencing factors integrating formal and informal waste sectors need to be considered for efficient reverse logistics model.
Furthermore, tangible factors also influence the implementation of reverse logistics and impacts health, economy, and environment. A survey conducted on Malaysian E&E companies by Khor and Udin, (2012), highlighted the after-effect of reverse logistics product disposition towards business performance. It is significant to consider restoration of both parts and products practical traits in order to yield recyclables or reuse the product as energy resources which can maximize profit. In addition, Hazen et al. (2012) confirmed that companies that adopt green or sustainable reverse logistics offer huge customer satisfaction that increases loyalty towards the firm and increase the purchase of the products. The combination of distribution planning and strategic production of the supply chain can significantly lead to better design of reverse logistics as well as planning, Das, (2012). In contrary, a survey conducted on Chinese firms based on reverse logistics by Abdulrahman et al. (2014) forecasted that there are key difficulties to reverse logistics including lack of logistics experts in the management, financial instability, lack of systems for return monitoring as well as government laws and economic policies.
Therefore, it can be stated that reverse logistics is a significant aspect in today’s world for companies as well as for customers for maintaining sustainability and eco-friendly measures. It is significant for companies to formulate such efficient models, techniques or frameworks that would fulfill the criteria required for efficient reverse logistics by mitigating each challenge and yield the opportunities offered by it, Jayant et al. (2012).
References
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Aguezzoul, A., 2014. Third-party logistics selection problem: A literature review on criteria and methods. Omega, 49, pp.69-78.
Akdo?an, M. ?. and Co?kun, A., 2012. Drivers of reverse logistics activities: an empirical investigation. Procedia-Social and Behavioral Sciences, 58, pp. 1640-1649.
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