Abstract

Reverse logistics has gained increasing attention in recent years. One of the biggest problems for organisations and supply chains is reducing cost in reverse logistics. This study attempted to gain a better understanding of reverse logistics and the costs associated with it. A literature study was conducted to identify the cost problems in reverse logistics and possible practices to overcome them. Following that, a survey was conducted to determine whether the practices identified in literature are perceived to be important in South Africa and if they are viable to implement. This was done by means of a gap and opportunity analysis. Results indicated that most practices are important, but some may be difficult to implement. The framework developed in this study provides a guideline for organisations to consider, adapt and adopt the most important implementable practices to overcome cost problems in reverse logistics. The limitation of this study is that only ten respondents participated in the survey. The approach followed in this study can be used as a foundation for future studies in reverse logistics.

Highlights

  • Reverse logistics has become a popular research topic in the last decade (Chan, Yin & Chan 2010:6293)

  • Once labelled as ‘the forgotten child of the supply chain’ (Gupta & Tiwari 2009:3), reverse logistics has not enjoyed an attractive reputation; this is because of the misconception that it is only a cost drain and it adds no value to the supply chain (Mukhopadhyay & Setaputra 2006:716)

  • Even though organisations experience various problems and challenges in reverse logistics, the focus of this study was on cost-related problems that organisations experience with regard to reverse logistics

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Summary

Introduction

Reverse logistics has become a popular research topic in the last decade (Chan, Yin & Chan 2010:6293) In recent years it has received increasing attention from both the academic world and industries (Jayant, Gupta & Garg 2012:87; Nikolaou & Evangelinos 2013:53). Reverse logistics denotes a set of planning, execution and flow-control measures for raw materials and finished products, with the aim of recovering and recycling those products or materials. It involves a whole range of activities, including collection, sorting, processing and reconditioning (BearingPoint 2008:27). If the products are returned it does not necessarily mean that they do not have any value (De Brito 2003:17)

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