Investing in reverse logistics: an explorative multi-industry study

Abstract

Reverse logistics, the movement of goods from consumers back to the vendors, is now a critical part of a sustainable logistics model. Many multinational firms headquartered in the USA have embraced reverse logistics not only because of government legislation but also due to cost benefits, customer pressures, and stakeholders' environmental concerns and expectations. Yet, reverse logistics might not be a viable solution for all companies. This exploratory study identifies specific asset category characteristics in which reverse logistics is viable. Interviews with executives from nine industries were conducted. The study captures four attributes that international companies must consider before investing in reverse logistics. The findings of this study will help international corporations and exporters decide whether to invest in reverse logistics as a means of reducing their importing and exporting costs and boosting exporter's performance on international markets.