Abstract
The deficiency in product performance of tire which concerns safety issue requires an immediate pull back from the market. An increasing trend of defect tires pull back from the market has made enforcement of environmental legislation to be more forceful and that is one of the reasons tire manufacturers scouting for possible distribution channels or methods to enhance reverse logistics as part of their supply chain. In order to provide a conceptual strategic implementation direction, this research adopted qualitative method occupying in-depth interviews with major tire manufacturing companies in Malaysia to extract the data and explore resulting themes. A strategic model of implementation of reverse logistics for tire industry in Malaysia has been established as a guide for academician, practitioners and relevant regulatory bodies with an aim to improve the process of reverse logistics addressing cost structure and environment issues as well as to introduce and enhance the possibility of reverse logistics in the supply chain of tire industry in Malaysia.
Highlights
The past decade has witnessed critical attention from various organizations when it comes to an issue of processing a product or managing the material returns as a key component within the logistics activities
As the cost of chemicals involves in practicing this method is high, Malaysian tire manufacturers are not implementing this method in managing the scrap tires
One of the most effective solutions improving the operation of the system of reverse logistics of worn tires would be the application of RFID technology and placing the RFID label in each manufactured tire
Summary
The past decade has witnessed critical attention from various organizations when it comes to an issue of processing a product or managing the material returns as a key component within the logistics activities This can be attributed to a growing trend and increasing volume and monetary value of product flow in the reverse direction within the supply chain. [2] defined reverse logistics as a systematic process by the manufacturers who accepts returns of products from the end user point of consumption for the purposes of remanufacturing, recycling and in the worst case to dispose it This definition was further strengthened by [3] who indicated that it is a strategic management a process which involves, planning, implementing and controlling of raw materials flow, work in progress inventory, finished goods with an efficient cost control measures with two ultimate objectives: i. The present study is an attempt to signal these challenges and attempt to propose possible recommendations
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