A Strategic Initiative for Successful Reverse Logistics Management in Retail Industry

Abstract

This study aims to identify critical factors for developing a successful reverse logistics strategic framework that could guide the managers for improving customer satisfaction and managing retail returns. Qualitative interviews were performed with logistics manager in retail industry to develop successful reverse logistics strategic framework with critical factors. A problem-driven content analysis methodology was also conducted reviewing previous studies published from 2008 through 2015 to determine the key factors that affect reverse logistics decisions of managers towards successful reverse logistics management. This study provided new insight on reverse logistics as an important strategic initiative for the retailers to gain customer satisfaction, competitive advantage and cost effectiveness. A reverse logistics framework that is developed in this article will be able to add value to supply chain and logistics studies. Reverse flow driven by motivation is an important implication for managers to manage logistics activities. Managers must emphasize on potential corporate benefits to reduce costs and add customer value.

Comparative analysis of reverse e-logistics’ solution in Asia and Europe

“…External ones comprise barriers from outside of the organizations that interrupt the proper implementation of RL, whereas the internal ones comprise opportunities such as internal technology and infrastructure, governance and supply chain activities, economic, knowledge, policy, market and competitors, and management associated subjects. Factors affecting reverse logistics can also be categorized in terms of product, inventory, warranty, and core returns in addition to reusable containers, damaged goods (which represent highest one of 20% of returns), seasonal items, hazardous materials, and stock adjustments (Panigrahi et al, 2018). Finally, it is worth mentioning that customers return products due to commercial return, end of use return, end of life return, repair and warranty return over the product life cycle (Tosarkani & Amin, 2018).…”

“…Firms deal with RL and product returns in a completely different manner. Every firm chooses the method according to its needs, capabilities, and the way it affects its revenues (Panigrahi et al, 2018). Certain solutions implemented were able to increase the efficiency of reverse e-logistics, others didn't make that huge effect.…”

“…For instance, the application of omin-channels in retail industry proved to be effective. However, if proper transportation is missing and regulations are tight, this will not yield the intended results (Panigrahi et al, 2018). Another solution is the application of a social commerce platform, a novel business method of e-commerce that takes advantage of social media and Web 2.0 technologies in order to back social-related exchange activities.…”

“…An important result of effective RL will be the customer satisfaction that can be achieved that in turn will yield customer loyalty and thus retention. Customer satisfaction is attained when resources are used to develop process capabilities and service quality (Panigrahi, Kar, Fen, Hoe, & Wong, 2018). Actually, a substantial profit accompanying with RL is also related to the recovery value of the goods being returned.…”

“…Slight attention has been focused on the factors affecting the effective implementation of RL practices in developing countries (Prakash & Barua, 2015.). Returns management is probably the most abandoned part in thee-logistics' practices (Panigrahi et al, 2018). Numerous firms have implemented reverse logistics RL in their strategies and policies to ensure continuous improvement and development by concentrating on decreasing of resources' wasting and by providing value from returned used-products (Sirisawat & Kiatcharoenpol, 2018).…”