Middle-East Journal of Scientific Research 24 (4): 1477-1482, 2016

ISSN 1990-9233
© IDOSI Publications, 2016
DOI: 10.5829/idosi.mejsr.2016.24.04.23469

The Components of Reverse Logistics Management

1
Punyapon Tepprasit and 2Natsapun Paopan

Candidate Doctor of Business Administration,

1

Graduate College of Management, Sripatum University, Bangkok, Thailand

2
Assistant Dean of Graduate College of Management, Sripatum University, Bangkok, Thailand

Abstract: The almost of manufacturing and export businesses in the world especially in developing country
didn’t have any operation and management process can enhance the competitive advantage in term of social
responsibility. Some country in develop country such as EU country used the term of social responsibility to
the non-tariff barrier that makes the huge effect and problem to international market entry. The reverse logistics
management (RLM) was the new way of management concept that enhance the difference of competitive
advantage term of business. Many organizations used RLM for improvement in management and operation
method to change. By the way, RLM can enhance the efficiency and effectiveness in term of social
responsibility. This research was used 2 approaches qualitative research method. First the phenomenology
approach that data collected by in-depth interviews and focus group from 21 and 15 key informants. Second,
documentary research method by literature review from 614 research and theoretical articles. Researcher was
used content analysis to summarize the components of reverse logistics management and synthesis the
research and theoretical articles for concluding the research finding. The Result indicated that the components
of reverse logistics management has three components that consist of Return Policy and Procedure (RPP),
Remanufacturing or Refurbishment (ROR) and Waste disposal (WAD).

Key words:Reverse Logistics Management Logistics Return Policy and Procedure (RPP)
Remanufacturing or Refurbishment (ROR) and Waste disposal (WAD)

INTRODUCTION that consist of product design and decision-making

materials, managers or organizations must focus on
The reverse logistics management (RLM) is the new components or materials that can’t effect the environment
management concept that continuously develop from and human’s health. Also, components or materials can
forward logistics management (FLM). FLM focus on the value recapture in remanufacturing process.
flow process management in forwarding that consists of Transportation and movement, that necessary activity
physical flow, fund flow and information flow [1]. While, to reducing the risk from product defect in case of
RLM gives precedence to reverse flow of product for broken. Manufacturing, Managers who was role and
remanufacturing or waste disposal. Some academicians responsibility in manufacturing process must design
refer reverse logistics management to one of major activity in process that can be flexibility and support the
that support business in social responsibility condition. remanufacturing process. Packaging, in computer
Prof Dr. James R. Stock who is one of the most famous in manufacturing companies, they usedthe recycle
logistics academicians and drive the business to set up packagingwhen end user buys new laptop from retailer
the revers logistics in operation process [2]. He told every that then took new laptop in bag to customers and return
business who want to success in reverse logistics the recycle packaging to manufacturing. The last one,
management that must attend in upstream process Communication was important to information and
such as procurement and purchasing, product design, knowledge sharing with together inside and outside
manufacturing and etc. Also, Tepprasit and Yuvanont [3] organization that for improvement the operation. In many
founded the forward logistics management in 5 activities research article such as Ke, Xie and Zhao [4] Abdullah

Corresponding Author: Punyapon Tepprasit, Candidate Doctor of Business Administration, Graduate College of Management,
Sripatum University, Bangkok, Thailand.
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and Yaakub [5], Nikolaidis [6], Corbacioglu and Laan [7], logistics management was the strategic management in
Pirlet [8], Cojocariu [9] founded the reverse logistics focus procurement and purchasing, movement, storage,
on management for efficiency and competitive advantage inventory management and information flow between
of cost and quality leadership also enhance the supply departments of the organization of value added
chain competitive advantage. The reverse logistics on cost reduction as well as effectiveness [12] [13].
management is the way that make organization to green Many researchers and academicians such as Bowersox,
business. The concept of reverse logistics management Closs and Cooper [14] and Mangan and De Marco [15]
covers the sustainability effective that consists of support Martin Christopher’s definition of forward
environment, social and community and economic [10]. logistics management. By the way, in Asia Context such
Therefore, managers and organizationswant to managing as Tepprasit and Yuvanont[3] defined the definition of
reverse logistics activities for efficiency and effectiveness forward logistics management was the process of
especially social responsibility and enhance the unique producing, fund and information flow from the origin
competitive advantage. They ought toset up the reverse point (upstream) to end-user (downstream). Also,
logistics in strategic and operation planning that cause the value will create in every activity. Also, Punyapon
the integration the business with environment term. Tepprasit [16] who was written the best research article
Local organization can raise the opportunity to global award from the famous institute name as National
market. By the way, the important of reverse logistics Institute of Development Administration (NIDA).
management can support any managers and organization Tepprasit defined the forward logistics management
to enhance high efficiency and effectiveness for value definition in one word as “Balance” and explained the
recapture from product defect and change brand image to word of balance mean organization supply (Upstream)
green business in social responsibility term. matching the customer demand (Downstream) [17].
Why do the components of reverse logistics In theoretical articles introduced the forward logistics
management have important for manufacturing? Because, management has 14 activities that consist of materials
the manufacturing company hasan operation process to movement, storage and warehousing, packaging,
return the product in many problem situations such as transportation, inventory management, order fulfillment,
product warranty, product defect from manufacturing and forecasting, time scheduling and manufacturing plan,
transportation process, out of market’s trend and etc. procurement and purchasing, customer service,
The manufacturing company must have the reverse location, reverse logistics, sporting activity, waste and
logistics management for control and monitor the reverse remanufacturing [2] [11] [14]. By the way, In the present,
process to efficiency and effectiveness in long-term cost many academicians and theoreticians separate reverse
reducing and value recapture. The value of reverse logistics, remanufacturing and waste to reverse logistics
logistics management will enhance the best practice in management.
supply chain and logistics to competitive advantage.
Also, the effectiveness on social responsibility then take Reverse Logistics Management: Reverse logistics
the company to sustainability. management (RLM) was the new concept of management.
RLM was founded in years of 1998 by the most famous
Objective: To study the components of reverse logistics academician and theoretician is Dr. Dale S. Rogers and
management. Dr. Ronald S. Tibben-Lembke [18] both pioneer ad-driven
the reverse logistics management concept. Rogers and
Literature Review Tibben-Lembke introduce the reverse logistics
Forward Logistics Management: In the past of decades, management's definition was the process that involves
logistics management (LM) or forward logistics the management planning, operation and control on cost
management (FLM) gave precedence to product efficiency and effectiveness from raw materials flow,
movement and distribution [2] [11]. In 1986, the council of work-in-process inventory and finished goods,
logistics management (CLM) was the famous leading also information from end user to point of origin for the
global association in logistics and supply chain objectives of recapture the value from product defect or
management defined definition and concept of logistics waste disposal. In the year of 2001, The professor in
management were an operation plan process and control Europe name as Moritz Fleischmann who was worked with
in order to make the efficiency and effectiveness of IBM and Heineken in criteria of logistics and supply chain
material and product movement, manufacture, distribution. management. In the present, he works with Production
In next step. The emeritus professor as Martin and Operations Management, European journal of
Christopher defined the defined the definition of forward Operational Research and MIT Sloan Management

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Review [19]. Moritz Fleischmann developed the reverse service quality to customers that create reliability and
logistics management’s definition and defined the reverse responsiveness level [18]. Also, the reverse logistics
logistics management was the process that involves the management could help organization for support the
management planning, operation planning and enhance manufacturing process to replace materials and
the efficiency and effectiveness control of inbound flow, components by reuse or recycle parts and components
inventory management and information to set up the that created the agility in process.In cost reducing term,
supply chain management direction that conform with reverse logistics management changed the wayof normal
recapture the value from product defect or waste disposal. business term to social responsibility term that created
The important objective of reverse logistics management how to cost reducing by reuse or recycle process in
was valued recapture from any product defect. long-term. By the way, reverse logistics could improve the
business assets.
The Relationship Between Forward Logistics
Management and Reverse Logistics Management: In past Methodology
decades, no one named the logistics in forward or Research Design: This study was used 2 approaches
backward also reverselogistics. Because the term of qualitative research method. First, the phenomenology
logistics concentrated the only forward flow from approach [20] [21] that data collected from key informants
upstream to downstream. The Organization focused only who are thelogistics and supply chain specialists in
how to input the materials to manufacturing or operation assembly to order business. Second, documentary
process then to keep finish goods in warehouse and research by related research and theoretical papers.
distribute to market [11]. Nowadays, customer had more
power and can choose the product that they have Key Informants and Data Collection: The researcher was
positive perception in service quality. The organization used in-depth interviews method with 21 key informants
must have decision to change or die. All organizations and focus group method with 15 key informants
have a return policy in automatic case such as that are the logistics and supply chain specialists.
warrantyand value recapture by reuse and recycle. By the Also documentary research method by literature review
way, organizations who want to success in reverse from 614 research and theoretical articles.
logistics management that must considerate the forward
logistics to design the product and choose green Data Analysis: The researcher was used content analysis
materials that fit for reuse, recycle and waste disposal. to summarize the components of reverse logistics
If an organization don’t plan the reverse logistics in the management and synthesis the related work paper for
first point of forward flow that will effect on reverseflow concluding the research finding [22].
to many problems in activities such as can’t replace the
components by reuse components and some parts can’t RESULTS AND DISCUSSION
to waste disposal that effect on the environment.
The result from triangulation method in in-depth
The Relationship Between Reverse Logistics interviews, focus group and documentary research
Management and Organization’s Performance: indicated that the three major components of reverse
The reverse logistics management had important factors logistics management. 21 key informants in in-depth
could drive the operation to success in long-term cost interview method said about 3 components of reverse
reducing and value recapture. First of all, reverse logistics logistics management such as return policy,
management was the new integration management that remanufacturing and waste disposal that conforms to 15
enhance the reverse flow of product return to sort out key informants in focus group method. In documentary
value component from waste then send a value research, research was used 614 research and theoretical
component to remanufacturing or refurbishment articles for the literature review. The result of
process for value recapture by reuse and recycle [19]. documentary research conforms to result from in-depth
Also, send a waste component to waste disposal. interviews and focus group. The literature review
However, the reverse logistics management model indicated that the Rogers and Tibben-Lembke’ research
focused to raise the high performance especially publication paper [18] both are the reverse logistics
reliability, responsiveness, agility, costs and assets. management original paper thatconclusion the
An organization who had a best practice in reverse components of reverse logistics management had 3
logistics management that means they can enhance the components (in Figure 1).

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Carvalho [34]. They founded the remanufacturing or

refurbishment was important to value recapture from
product defect. Example, the old one product that out of
trend and market. Wholesaler or retailer can return the
product to the manufacturer. The remanufacturing or
refurbishment are the replacement the new one by value
components.
The last one, waste disposal was the last process of
reverse logistics process. Many researchers, theoreticians
and academicians founded the waste disposal can make
the highest effect to stakeholder especially environment,
social and humans and etc. Winter andKnemeyer [35],
Fig. 1: The Components of Reverse Logistics Tang et al., [36] and Zhang, Hui and Chen [37] introduced
Management the important of waste disposal. All managers and
organization must give precedence to waste disposal
process design in only low effects condition. If any
First, return policy and procedure is the highest organization used the waste disposal in a wrong way that
important component can drive all activities in reverse the total effect will make air pollution and contamination.
logistics. Because return policy and procedure drive the In the case of the electronics industry in a developed
way to improvement any activities in the organization country such as EU country, their operation follow the
to new directionsupport the reverse logistics WEEE policy that includes the good way to waste
management. It conforms to Kuczenski and Geyer [23], disposal in electronics products. Some researcher such as
Turrisi, Bruccoleri and Cannella [24], Jensen, Munksgaard Kuczenski and Geyer [23] and Abdullah and Yaakub [5]
and Arlbjørn [25] Rieck and Zimmermann [26], mention in landfill method. Managers or organizations
Bing et al., [27], Cojocariu [9], Draskovic [28], must choose the landfill far from community, village,
Abdullah and Yaakub [5], Zaarour et al. (2014)[29]. forest and etc. that for risk protection from chemicals in
They founded the return policy and procedure was one waste.
of the major reverse logistics management components.
It had a very important process. Managers must give CONCLUSION
precedence to policy design that covers the reasons for
product defect in using the process at end users point for This research aimed to study on the components of
service accommodation to the highest quality in product reverse logistics management. Researcher was used 2
and service. Also, focus on design and choosing the approaches qualitative research method in the
product return channels in the condition of time, cost and phenomenology approach by the in-depth interview with
service. 21 key informants and focus group method with 15 key
Second, remanufacturing or refurbishment. informants that are the logistics and supply chain
This process has important when organizations want and specialists. Also literature review from 614 research and
need to value recapture from products or tools defect. theoretical papers. The result indicated that the
Remanufacturing or refurbishment involve 2 methods components of reverse logistics management have three
such as reuse and recycle. Both are difference way to do. components. First Return Policy and Procedure (RPP) was
Reuse involve the how to take some quality components the guidelines for product return operation from end
in product defect replace to the new product in users, wholesaler, or retailer back to origin place or
completely. But, recycle involve the how to refurbishment manufacturer. RPP must have the reasons and types for
some components such as plastic to new components for product return, also the planning of backhaul such as
new products. Remanufacturing or refurbishment route, time table, method, how to and etc. Second,
process has important activity that's components Remanufacturing or Refurbishment (ROR) was procedure
sortingoperation. That help managers or organization to or processfrom the beginning step that was components
the separation between the value from non-value sorting for inspection to finding the value from product
components that conform with Lee et al. [30], defectthen send back to a remanufacturing process for
Bernon, Upperton and Cullenv [31], Kye, Lee and Leev reuse or recycle. The last one, Waste disposal (WAD)
[32], Nagy, Wassan and Salhi [33] and Bravo and was procedure or process that occurred after components

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