Impact of Reverse Logistics Product Disposition towards Business Performance in Malaysian E&E Companies

Abstract

Generation of electronic waste is concurrent with higher demand for equipments consumed by households and business institutions.Exponential growth of waste that enters landfill is a valuable secondary resource that presents cost-saving opportunities for OEMs through take back programs, because recoverable assets would otherwise be worthless and hazardous to environmental and human health.This study analyzes the impact of reverse logistics among electrical and electronic companies in Malaysia which have established ISO 14000 certified environmental management system.The study on reverse logistics narrows down on business performance of various product disposition options; such as repair, recondition, remanufacture, recycle and disposal.When products and their added-value constituents are recovered in whole or in subassemblies, it is essential to recognize the prospective business benefits to ascertain the viability of product recovery.The results of this study provide evidence for managers to optimize restoration of both products' and parts' functional qualities for reuse or to harvest recyclables as material and energy resources which are significantly profitable.