Abstract

The concept of reverse logistics is often misunderstood and academic research in this field is limited, especially in South Africa. The research for this article was based on the available literature. Various international sources and a limited number of South African sources were studied in an attempt to explore the concept of reverse logistics, and identify possible problems and potential solutions to such reverse logistics problems. There are several definitions of reverse logistics and the term is often confused with other terms such as returns management. Various problems and challenges also exist in reverse logistics; however, solutions have been proposed to address these problems. The research presented in this article clearly shows that a variety of opportunities exists in the field of reverse logistics in South Africa, with regard to research as well as the proper implementation and management of reverse logistics in business.

Highlights

  • Reverse logistics, which is essentially the opposite of logistics (Council of Supply Chain Management Professionals, 2010: 114), has not enjoyed an attractive reputation because of the misconception that it is only a cost drain which does not add any value to the supply chain (Mukhopadhyay & Setaputra, 2006: 716)

  • Reverse logistics can be a major source of untapped profitability for organisations (Sumner, 2008: 1) and a well-managed reverse logistics programme can distinguish an organisation from competitors and increase customer loyalty (Dampier, 2006: 22)

  • The research discussed in this article was based on the literature in which reverse logistics was explored

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Summary

INTRODUCTION

Reverse logistics, which is essentially the opposite of logistics (Council of Supply Chain Management Professionals, 2010: 114), has not enjoyed an attractive reputation because of the misconception that it is only a cost drain which does not add any value to the supply chain (Mukhopadhyay & Setaputra, 2006: 716). Growing emphasis on customer satisfaction, the liberalisation of return policies, and the reuse of parts have lengthened product life cycles This has resulted in an increase in backward flow of products through the supply chain, placing more emphasis on reverse logistics (Schwartz, 2000: 95). Reverse logistics can be a major source of untapped profitability for organisations (Sumner, 2008: 1) and a well-managed reverse logistics programme can distinguish an organisation from competitors and increase customer loyalty (Dampier, 2006: 22). It seems that businesses and supply chains in South Africa fail to realise the importance of reverse logistics. The main objective of this article is to explore the concept of reverse logistics and the possible problems and potential solutions associated with reverse logistics

LITERATURE STUDY
POTENTIAL SOLUTIONS TO REVERSE LOGISTICS PROBLEMS
ALIGNING POTENTIAL SOLUTIONS TO SPECIFIC REVERSE LOGISTICS PROBLEMS
Insufficient information systems
Analyse the reasons for customer returns
Findings
CONCLUSION
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