Reverse Logistics Operations in Automobile Industry: A Case Study Using SAP-LAP Approach

Abstract

This paper sets out to analyze a case study of ABC, one of the leading manufacturers of automobiles in India to assess its current status of reverse logistics operations. A situation-actor-process (SAP)-learning-action-performance (LAP) model has been applied to analyze the case study. Literature review indicates that issues like regulations, top management commitment, competition in market, and state of art information technologies are needed for successful reverse logistics programs. Very few frameworks of reverse logistics have been reported in literature that give a holistic perspective of reverse logistics operations in automobile industry. Results of case study indicate that reverse logistics operations at ABC are mainly confined to warranty components to gain goodwill of customers. Also, financial constraints and lack of appropriate performance metrics were the chief barriers affecting reverse logistics operations at ABC. Results of study reveals that though Indian automobile companies have begun to embrace reverses logistics practices, ample opportunities for improvements are still possible. The present SAP-LAP framework is useful in understanding issues related to strategic, tactical and operational level issues of reverse logistics. Managers can gain useful insights by understanding the interplay among situation, actor, and process. The synthesis of SAP leads to LAP, which suggests improvement actions based on the gaps of present situation, actors, and processes which could be useful for logistics managers.