The Effects of Companies' Reverse Logistics Motivations on Their Reverse Logistics Networks

Abstract

The aim of this paper is to show how the differences in the motivations of companies to implement reverse logistics affect their reverse logistics networks. Effective reverse logistics management facilitates the accomplishment of many goals for companies, such as reducing operational costs, increasing customer satisfaction, boosting brand value, and meeting the requirements of environmental regulations. However, the prominence of these motivations may vary according to sector. In some sectors, the strict government regulations in force may compel companies to implement reverse logistics, while in others, consumers may be highly conscious of the environmental-friendly production, encouraging companies to engage into reverse logistics activities. This situation calls for studies that analyse the differences in companies' motivations to implement reverse logistics, and explain in turn how these differences shape their reverse logistics networks. Hence, this study has adopted a multiple-case study analysing reverse logistics activities of four companies each representing one of the following sectors: textile, battery, building materials, and food. Such cross-sectoral analysis enables an examination of the reverse logistics network design according to different motivation factors. The results reveal that different RL motivations have an impact on three reverse logistics design issues: the collection of returns, the location to inspect returns, and forward/ backward integration on RL networks. This study explicates the theoretical and practical implications of these results as well.