Barriers to adoption of reverse logistics: a case of construction, real estate, infrastructure and project (CRIP) sectors

Abstract

PurposeThis study attempts to identify and analyse the barriers to implementing a reverse logistics (RL) system in Indian Construction, Real estate, Infrastructure and Project (CRIP) sectors and present a structured model to identify interdependencies among them.Design/methodology/approachThe barriers to implementing RL in CRIP sectors in India were identified using a Delphi study. The interdependencies were identified using Interpretive Structural Modeling (ISM). Further, using the Matriced' Impacts Croisés Multiplication Appliquée à un Classement (MICMAC) analysis, the barriers were classified on the basis of their driving power and interdependencies.FindingsThe study has identified ten barriers that can hamper the application of an RL system in CRIP sectors. The finding of the ISM model shows that macro level barriers such as lack of awareness of reverse logistics, insufficient government policies and unavailability of standard codes stimulate each other and also drive all other barriers. The organization-specific barriers operating at the strategic/tactical level, namely, company's rigid mechanism, lack of awareness of economic profits, inadequate company’s organizational policies and lack of training, reluctance from stakeholders, scarcity of resources and finance from company are found at the intermediate level of hierarchy and they can be influenced by the barriers at the lower level and influence the barriers on the and higher levels. The operational level barrier namely “Inadequate Information Technology system” is at the top of the hierarchy and can be driven by all the barriers at the lower level.Research limitations/implicationsThe present findings are based on the opinions of experts only from Indian CRIP sectors so the results may require to be validated in other contexts.Practical implicationsThe structural model presenting the interdependencies will be a guide for the CRIP supply chain professionals in understanding and ranking the barriers they may face while implementing the RL system.Originality/valueThe study contributes to the existing literature by providing a set of barriers and their interdependencies faced during the implementation of an RL system implementation in CRIP sectors. It is one of the first studies which identifies barriers applicable to the CRIP firms in India and models their inter-dependencies. Additionally Consequently, these firms can make a move forward towards a circular economy by overcoming these interlinked barriers.

Sustainable supply chain management of automotive sector in context to the circular economy: A strategic framework

“…The results identified a lack of awareness about reverse logistics with high cause and also supported by literature (Alkahtani et al, 2021; Ambekar et al, 2021), and thus, practitioners must make every effort to overcome this barrier when launching sustainability initiatives. This work also expands understanding of the different barriers of SSCM for being competitive and sustainable.…”

“…This work will help to formulate favourable strategies for implementing SSCM to achieve long-term competitive advantage. It also indicates the types of sustainable practices that should be supported and how to deal with organizational constraints.The results identified a lack of awareness about reverse logistics with high cause and also supported by literature(Alkahtani et al, 2021;Ambekar et al, 2021), and thus, practitioners must make every effort to overcome this barrier when launching sustainability initiatives. This work also expands understanding of the different barriers of SSCM for being competitive and sustainable.…”

“…Lack of awareness about reverse logistics adoption (B5) has the highest D − R value and is placed at top of the digraph. Alkahtani et al (2021) and Ambekar et al (2021) also revealed that lack of awareness about reverse logistics is an important barrier at the strategic/tactical level. Experts are also agreed that the use of reverse logistics is seen as one of the first steps towards sustainable development, as it aids the supply chain in closing the material movement loop.…”

“…It may appear simple, but the only viable solution is to prevent waste from being created in the first place. The adoption of reverse logistics is underutilized due to a lack of awareness (B5) is related to unawareness about how businesses can benefit from return processes to improve environmental sustainability (Alkahtani et al, 2021; Ambekar et al, 2021). Finally, an advantage of optimized reverse logistics is the necessity to develop meaningful and effective ways to recycle or properly dispose of unneeded products (Ravi & Shankar, 2005).…”

“…It may appear simple, but the only viable solution is to prevent waste from being created in the first place. The adoption of reverse logistics is underutilized due to a lack of awareness (B5) is related to unawareness about how businesses can benefit from return processes to improve environmental sustainability (Alkahtani et al, 2021;Ambekar et al, 2021).…”