Reverse logistics uncertainty in a courier industry: a triadic model

Michael Wang,Bill Wang,Ricky Chan

doi:10.1108/mscra-10-2020-0026

Abstract

PurposeDue to increasing supply chain complexity, the supply chain uncertainty has become an imperative issue, which hinders the development of modern logistics and supply chain management. The paper attempts to conceptualize reverse logistics uncertainty from supply chain uncertainty literature and present the types of reverse logistics uncertainty in a triadic model.Design/methodology/approachThe concept of reverse logistics uncertainty is developed based on a triadic model of logistics uncertainty and supply chain uncertainty literature. A desk research is conducted to develop a taxonomy of reverse logistics uncertainty. To better depict the reverse logistics uncertainty, we use case studies to discuss the types of reverse logistics uncertainty in the triadic model.FindingsThe study reveals four types of supply chain uncertainties in the reverse logistics. We call them reverse logistics uncertainty. Type-A and Type-B uncertainty are new types of supply chain uncertainty in the reverse logistics.Research limitations/implicationsThe types of reverse logistics uncertainty have not been empirically validated in industries. Especially, the two new types including Type-A and Type-B reverse uncertainty need further exploration.Originality/valueAlthough reverse logistics has been discussed in the past decades, very few studies have been conducted on the supply chain uncertainty in returns management arena. The paper offers valuable insights to better understand the supply chain uncertainty in the reverse logistics. This also provides suggestions for both managers and researchers to reflect on the reverse logistics uncertainty management and business sustainability.

Highlights

Both forward and reverse logistics (RL) link the different suppliers, manufacturers, wholesalers and retail stores in supply chains (Govindan et al, 2015)
We focus on the RL in the courier service provider (CSP), the definition of the CSP is a logistics firm that provides a courier service to its customers of outsourced logistics and delivery service for part or all of their supply chain management functions
In this conceptual paper, according to the contingency theory, we investigate the supply chain uncertainty in a RL, which is different from a traditional logistics (Richey et al, 2005)

Summary

Introduction

Both forward and reverse logistics (RL) link the different suppliers, manufacturers, wholesalers and retail stores in supply chains (Govindan et al, 2015). We focus on the RL in the CSP, the definition of the CSP is a logistics firm that provides a courier service to its customers of outsourced (or “third party”) logistics and delivery service for part or all of their supply chain management functions. The domestic courier service is comprised of six separate activities The set of transactions in the transportation chain are (1) a domestic pickup courier collects a parcel from a shipper (the sender of a parcel); (2) and transports the parcel to an origin depot; (3) an origin depot consolidates it for air or road transit; (4) an subcontract air or road carrier transports the parcel to a destination depot; (5) the destination depot separates or deconsolidates the parcels under different delivery addresses and (6) delivery couriers delivers the parcel to its final destination (Figure 1) (Wang, 2016). More activities and regulated processes may be involved (i.e. customs clearance, security screening) in an Sender

Courier Service Providers

Foreign Couriers Service Provider

Type B Uncertainty

Internal Operational Uncertainty

Conclusion and recommendation