Assessing reverse logistics complexity: Conceptual model, scale development, and a case study.

Abstract

Paper three represented a case study at one of the biggest computer wholesale distribution companies in the USA. Under conditions of anonymity, the reverse logistics program development and implementation was studied in detail. Relevant information was collected through interviews with reverse logistics personnel at different positions within the company; from the general manager of the distribution center and the reverse logistics manager to reverse logistics supervisors directly involved in day-to-day operations. Important implications in terms of reverse logistics program development and implementation were the major contributive outcomes of this final research paper of the dissertation.

The current dissertation examines a specific area of the supply chain, i.e., reverse logistics. More companies recognize the potential of reverse logistics as a powerful source of competitive differentiation. At the same time, research on the topic remains scattered at best. Some crucial issues related to developing modern reverse logistics programs remain largely unaddressed. Questions such as where to focus investments in returns management to achieve superior performance, how to ensure that firms build the right set of reverse logistics capabilities, and what specific competencies are required in the process, lack theory-based answers. The Resource Based View of the firm (Barney, 1991; Wernerfelt, 1984) is applied as the theoretical framework of investigation. The conceptual model is strengthened by empirical data collected at six companies directly involved in reverse logistics operations. The balance between theory and practice defines the format of the research project.

The dissertation follows a three paper format. The first paper is conceptual in nature and offers a framework for investigating the major factors that affect reverse logistics program development and implementation within the Resource Based View of the firm. Based on information from interviews with returns executives the need for formalizing the program was identified as top priority. Particular emphasis is placed on the formalization of the reverse logistics related processes which bridge resource allocation decisions to building enhanced reverse logistics capabilities toward superior reverse logistics program performance. Determining the level of reverse logistics process formalization became the logical following point.

The second paper developed a reverse logistics process formalization assessment tool. The development effort was based on literature review and information gathered from in-depth interviews with logistics personnel at six companies. Strong managerial implications followed in terms of reducing the complexity of returns management by increasing the level of formalization. The relationship was confirmed in the last paper among other relevant to reverse logistics information.