Drivers and obstacles of product recovery activities in the Greek industry

Abstract

Purpose -The purpose of this study is to assess the current state of affairs in the product recovery domain as perceived by Greek industry. The extent of involvement of original equipment manufacturers in product recovery activities (PRA), the direct profitability of PRA and the most important specific drivers and barriers to the implementation of PRA are the main issues that are explored. The paper also investigates whether these issues are affected by two factors: level of PRA and profitability of existing PRA. Design/methodology/approach -A questionnaire-based survey was conducted and 312 valid responses were received. Statistical analysis of the responses was carried out via non-parametric x 2 -tests for homogeneity, Mann-Whitney U-tests and Friedman two-way analysis of variance. Findings -The results suggest that PRA are not very much developed by manufacturing companies in Greece. The companies engage in PRA mainly because they want to provide service to their customers; they are hesitant to embark on an unknown set of new activities, which complicate their manufacturing operations. Research limitations/implications -A limitation of the study is the variability in the manufacturers' responses as the data comes from the entire Greek industry. Originality/value -The paper responds to the repeated calls for more empirical research in reverse logistics. It is the first survey-based study of PRA in an industry that is not as developed as the industry in the USA or Western Europe, where most similar empirical research is conducted.

Viability of remanufacturing practice: a strategic decision making framework for Chinese auto-parts companies

“…Attention needs to be focused on these aspects if any meaningful remanufacturing is to occur in China going forward. Unlike in the west where RL is relatively well-practiced and has enabled companies to witness enhanced competitive gains through remanufacturing (Chapman, et al, 2010;Kapetanopoulou and Tagaras, 2011), RL is still a major obstacle in the companies investigated. The capability of third-parties is a major hindrance to RL outsourcing in China and companies believe that establishing and maintaining their own logistic function would be more desirable.…”

“…The lack of expertise and skilled workforce with the requisite knowhow is a predominant barrier in the inspection, refurbishing and reassembly process and a major reason for firms electing not to undertake remanufacturing activities (Mukherjee and Mondal, 2009;Kapetanopoulou and Tagaras, 2011).…”

“…However, while a remanufactured product should be of the same or better quality (due to technical upgrading of the remanufactured product) compared with the original, consumers tend to regard remanufactured products as of lower quality and lower market price (Dowlatshahi, 2005;Kapetanopoulou and Tagaras, 2011). The poor quality image for remanufactured products from customers combined with OEMs' fear of market cannibalization -the potential for a remanufactured product drawing customers away from a new product by the same company and thereby eroding the sales of the new product -has been identified as the central issue in the continuing development of closed-loop supply chains (Guide and Li, 2010;Wu, 2013).…”

“…Remanufacturing has resulted in increased profits and market share for manufacturers in Western countries (Jayaraman and Luo, 2007;Giannetti, 2012). Remanufacturing further benefits businesses in terms of cost saving from reduced resource requirements, through assets recovery and reusing/recycling, cost savings from not using landfills, expanded product life cycle, increased employment rate and improved brand image (Sarkis, 2010;Kapetanopoulou and Tagaras, 2011;Zhang, et al, 2011).…”

“…Remanufacturing has resulted in increased profits and market share for manufacturers in Western countries (Jayaraman and Luo, 2007;Giannetti, 2012). Remanufacturing further benefits businesses in terms of cost saving from reduced resource requirements, through assets recovery and reusing/recycling, cost savings from not using landfills, expanded product life cycle, increased employment rate and improved brand image (Sarkis, 2010;Kapetanopoulou and Tagaras, 2011;Zhang, et al, 2011).The automotive industry is one of the leading industries in remanufacturing and product recovery strategy, with 70% of all remanufacturing companies being in the automotive sector (Steinhilper, 2011;Zhang, et al, 2011). Furthermore, of all major products that are being The major motivation for this study is to (i) develop a remanufacturing decision-making framework for the Chinese auto-parts manufacturers' strategic decisions to either engage in the remanufacturing practice in-house, outsource or to not engage in remanufacturing and (ii) to investigate the critical factors affecting remanufacturing practices in the Chinese auto-parts industry.…”