Abstract
Reverse logistics involves several activities that, based on decisions on how to implement and use them, seriously affect and impact the performance of an organisation. This paper analyses how different activities of reverse logistics could affect costs, and thus the performance of the organisation. The study is based on a survey of companies of the Spanish market and applies a structural model. The analysis provides evidence that: (1) based on the type of an activity, reverse logistics has different cost; therefore, it is important to select the most appropriate combination and implementation of reverse logistics activities. (2) Reverse logistics activities affect reverse logistics cost, and thus it decisively determines organisational performance. A number of implications and contributions stems from the discussion and conclusions of the study.
References
Adler NJ (1983). A typology of management studies involving culture. Journal of International Business Studies 14 (2): 29–47.
Anderson JC and Gerbing DW (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin 103 (3): 411–423.
Bollen KA (1989). Structural Equations with Latent Variables. Wiley-Interscience Publication: USA.
Bowersox DJ, Closs DJ and Stank TP (1999). 21st Century Logistics: Making Supply Chain Integration a Reality. Council of Logistics Management: Oak Brook, IL.
Chu LK, Shi Y, Lin S, Sculli D and Ni J (2010). Fuzzy chance-constrained programming model for a multi-echelon reverse logistics network for household appliances. Journal of the Operational Research Society 61 (4): 551–560.
Daugherty P, Matthew BM and Richey RG (2002). Information support for reverse logistics: The influence of relationship commitment. Journal of Business Logistics 23 (1): 85–106.
Daugherty PJ, Richey RG, Genchev SE and Chen H (2005). Reverse logistics: Superior performance through focused resource commitments to information technology. Transportation Research Part E: Logistics and Transportation Review 41 (2): 77–92.
Dun & Bradstreet (2009). Risk Management, Sales and Marketing, and Supply Chain Management. Database available from http://www.dnb.com/us/, accessed 15 March 2009.
Dutton JE and Dukerich JM (1991). Keeping an eye on the mirror: Image and identity in organizational adaptation. Academy of Management Journal 34 (3): 517–554.
Fawcett SE and Clinton SR (1996). Enhancing logistics performance to improve the competitiveness of manufacturing organizations. Production and Inventory Management Journal 37 (1): 40–46.
Ferrer G and Whybark DC (2000). From garbage to goods: Successful remanufacturing systems and skills. Business Horizons 43 (6): 55–64.
Figueiredo FJ and Mayerle SF (2008). Designing minimum-cost recycling collection networks with required throughput. Transportation Research Part E: Logistics and Transportation Review 44 (5): 731–752.
Fleischmann M, Bloemhof-Ruwaard JM, Dekker R, Van Der Laan E, Van Nunen J and Van Wassenhove L (1997). Quantitative models for reverse logistics: A review. European Journal of Operational Research 103 (1): 1–13.
Fornell C and Larcker FL (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research 18 (1): 39–50.
García VJ, Lloréns FJ and Verdú AJ (2009). The influence of CEO perceptions on the level of organizational learning: Single-loop and double-loop learning. International Journal of Manpower 30 (6): 567–590.
Hair JF, Anderson RE, Tatham RL and Black WC (1999). Análisis Multivariante. Prentice Hall: Madrid, (in Spanish).
Hellström D and Johansson O (2010). The impact of control strategies on the management of returnable transport items. Transportation Research Part E: Logistics and Transportation Review 46 (6): 1128–1139.
Hu TL, Sheu JB and Huang KH (2002). A reverse logistics cost minimization model for the treatment of hazardous wastes. Transportation Research Part E: Logistics and Transportation Review 38 (6): 457–473.
Jack EP, Powers TL and Skinner L (2010). Reverse logistics capabilities: Antecedents and cost savings. International Journal of Physical Distribution & Logistics Management 40 (3): 228–246.
Jahre M (1995). Household waste collection as a reverse channel: A theoretical perspective. International Journal of Physical Distribution & Logistics Management 25 (2): 39–55.
Jayaraman V, Guide VDR and Srivastava R (1999). A closed-loop logistics model for remanufacturing. Journal of the Operational Research Society 50 (5): 497–508.
Kannan G and Aulbur WG (2004). Intellectual capital: Measurement effectiveness. Journal of Intellectual Capital 5 (3): 389–413.
Kenné JP, Dejax P and Gharbi A (2012). Production planning of a hybrid manufacturing-remanufacturing system under uncertainty within a closed-loop supply chain. International Journal of Production Economics 135 (1): 81–93.
Konrad AM and Linnehan F (1995). Formalized HRM structures: Coordinating equal employment opportunity or concealing organizational practices? Academy of Management Journal 38 (3): 787–820.
Koufteros X, Babbar S and Kaighobadi M (2009). A paradigm for examining second-order factor models employing structural equation modelling. International Journal of Production Economics 120 (2): 633–652.
Krikke H (1998). Recovery Strategies and Reserve Logistic Network Design. Institute for Business Engineering and Technology Application: Tilburg University, The Netherlands.
Lambert DM and Burduroglu R (2000). Measuring and selling the value of logistics. International Journal of Logistics Management 11 (1): 1–17.
Lambert DM and Harrington TC (2010). Measuring nonresponse bias in mail surveys. Journal of Business Logistics 11 (2): 5–25.
Meyer H (1999). Many happy returns. The Journal of Business Strategy 20 (4): 27–31.
Mollenkopf D and Weathersby H (2004). Creating value through reverse logistics. Logistics Quarterly 9 (3/4): 1–15.
Olorunniwo FO and Li X (2010). Information sharing and collaboration practices in reverse logistics. Supply Chain Management: An International Journal 15 (6): 454–462.
Podsakoff PM and Organ DW (1986). Self-reports in organizational research: Problems and prospects. Journal of Management 12 (4): 531–544.
Ravi V, Ravi S and Tiwari MK (2005). Productivity improvement of a computer hardware supply chain. International Journal of Productivity and Performance Management 54 (3/4): 239–255.
Rogers DS and Tibben-Lembke R (1999). Going Backwards: Reverse Logistics Trends and Practices. RLEC Press: Pittsburgh, PA.
Schroeder R (1993). Operations Management. McGraw-Hill, Inc: New York.
Srivastava SK and Srivastava RK (2006). Managing product returns for reverse logistics. International Journal of Physical Distribution & Logistics Management 36 (7): 524–546.
Stock JR, Speh TW and Shear HW (2002). Many happy (product) returns. Harvard Business Review 80 (7): 16–17.
Tibben-Lembke RS and Rogers DS (2002). Differences between forward and reverse logistics in a retail environment. Supply Chain Management: An International Journal 7 (5): 271–296.
Tonanont A, Yimsiri S, Jitpitaklert W and Rogers KJ (2008). Performance evaluation in reverse logistics with data envelopment analysis. Proceedings of the 2008 Industrial Engineering Research Conference, Vancouver, Canada, pp. 764–769.
Wadhwa S and Madaan J (2007). Conceptual framework for knowledge management in reverse enterprise system. Journal of Knowledge Management Practice 8 (2): 1–22.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Mihi Ramírez, A., Morales, V. Improving organisational performance through reverse logistics. J Oper Res Soc 65, 954–962 (2014). https://doi.org/10.1057/jors.2013.61
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1057/jors.2013.61