An integrated approach to managing reverse logistics

TLDR

Supply chain management involves coordinating upstream and downstream relationships to create value at lower cost, yet most studies focus on product delivery and neglect reverse logistics. This study aims to expand reverse‑logistics literature by showing that a holistic return‑management approach can markedly reduce retailer return volumes in the UK retail sector. The authors propose a framework that manages reverse logistics through integration, collaboration, and evaluation. Adopting this integrated supply‑chain approach can lower reverse‑logistics costs while maximizing asset recovery value.

Abstract

Supply chain management has been defined as the management of upstream and downstream relationships with suppliers and customers in order to create enhanced value in the final market-place at less cost to the supply chain as a whole. However, most research in the field has focused on the delivery of product to the market-place and there has been limited research on the reverse logistics process. The research reported in this paper seeks to contribute to the development of a literature on reverse logistics and, based on empirical findings in the UK retail sector, it is argued that if organisations managed product returns in a holistic way, the level of returns currently experienced by retailers could be reduced significantly. A framework is put forward for managing reverse logistics through adopting the three management approaches of integration, collaboration and evaluation. In conclusion, it is argued that the use of such an integrated supply chain approach offers significant opportunities to reduce the cost of reverse logistics operations while maximising asset recovery values.