Inquiry into reverse logistics and a decision model

Abstract

A process in which a product is moving in reverse along the supply chain network is called as reverse logistics. The objective of reverse logistics is to recapture the value of the final product. Reverse logistics is gaining ground because of its importance in managing a closed loop supply chain. Companies across the world are showing concern about environmental degradation and are realising the need for sustainable development. Many countries have already passed legal regulations. Good reverse logistics process indicates lot of reuse, recycling and reducing the material consumed, thereby ensuring sustainability. Improving reverse logistics will result in increase in sales up by 10%, a reduction in the supply chain costs by 25% to 40%. In retail sector the profit margins are less and strengthening reverse logistics can increase the profit margins. This paper attempts to inquire into the reverse logistics area and come out with the prioritised variables impacting the different reverse logistics disposition decision. The paper attempts to propose a conceptual model for reverse logistics disposition decision.