An integrated approach to managing reverse logistics

Abstract

Supply chain management has been defined as the management of upstream and downstream relationships with suppliers and customers in order to create enhanced value in the final market-place at less cost to the supply chain as a whole. However, most research in the field has focused on the delivery of product to the market-place and there has been limited research on the reverse logistics process. The research reported in this paper seeks to contribute to the development of a literature on reverse logistics and, based on empirical findings in the UK retail sector, it is argued that if organisations managed product returns in a holistic way, the level of returns currently experienced by retailers could be reduced significantly. A framework is put forward for managing reverse logistics through adopting the three management approaches of integration, collaboration and evaluation. In conclusion, it is argued that the use of such an integrated supply chain approach offers significant opportunities to reduce the cost of reverse logistics operations while maximising asset recovery values.