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

The reverse logistics management (RLM) is the new
management concept that continuously develop from
forward logistics management (FLM). FLM focus on the
flow process management in forwarding that consists of
physical flow, fund flow and information flow [1]. While,
RLM gives precedence to reverse flow of product for
remanufacturing or waste disposal. Some academicians
refer reverse logistics management to one of major activity
that support business in social responsibility condition.
Prof Dr. James R. Stock who is one of the most famous in
logistics academicians and drive the business to set up
the revers logistics in operation process [2]. He told every
business who want to success in reverse logistics
management that must attend in upstream process
such as procurement and purchasing, product design,
manufacturing and etc. Also, Tepprasit and Yuvanont [3]
founded the forward logistics management in 5 activities
materials, managers or organizations must focus on
components or materials that can’t effect the environment
and human’s health. Also, components or materials can
value recapture in remanufacturing process.
Transportation and movement, that necessary activity
to reducing the risk from product defect in case of
broken. Manufacturing, Managers who was role and
responsibility in manufacturing process must design
in process that can be flexibility and support the
remanufacturing process. Packaging, in computer
manufacturing companies, they usedthe recycle
packagingwhen end user buys new laptop from retailer
that then took new laptop in bag to customers and return
the recycle packaging to manufacturing. The last one,
Communication was important to information and
knowledge sharing with together inside and outside
organization that for improvement the operation. In many
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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 Middle-East J. Sci. Res., 24 (4): 1477-1482, 2016
and Yaakub [5], Nikolaidis [6], Corbacioglu and Laan [7],
Pirlet [8], Cojocariu [9] founded the reverse logistics focus
on management for efficiency and competitive advantage
of cost and quality leadership also enhance the supply
chain competitive advantage. The reverse logistics
management is the way that make organization to green
business. The concept of reverse logistics management
covers the sustainability effective that consists of
environment, social and community and economic [10].
Therefore, managers and organizationswant to managing
reverse logistics activities for efficiency and effectiveness
especially social responsibility and enhance the unique
competitive advantage. They ought toset up the reverse
logistics in strategic and operation planning that cause
the integration the business with environment term.
Local organization can raise the opportunity to global
market. By the way, the important of reverse logistics
management can support any managers and organization
to enhance high efficiency and effectiveness for value
recapture from product defect and change brand image to
green business in social responsibility term.
Why do the components of reverse logistics
management have important for manufacturing? Because,
the manufacturing company hasan operation process to
return the product in many problem situations such as
product warranty, product defect from manufacturing and
transportation process, out of market’s trend and etc.
The manufacturing company must have the reverse
logistics management for control and monitor the reverse
process to efficiency and effectiveness in long-term cost
reducing and value recapture. The value of reverse
logistics management will enhance the best practice in
supply chain and logistics to competitive advantage.
Also, the effectiveness on social responsibility then take
the company to sustainability.
Objective: To study the components of reverse logistics
management.
Literature Review
Forward Logistics Management: In the past of decades,
logistics management (LM) or forward logistics
management (FLM) gave precedence to product
movement and distribution [2] [11]. In 1986, the council of
logistics management (CLM) was the famous leading
global association in logistics and supply chain
management defined definition and concept of logistics
management were an operation plan process and control
in order to make the efficiency and effectiveness of
material and product movement, manufacture, distribution.
In next step. The emeritus professor as Martin
Christopher defined the defined the definition of forward
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logistics management was the strategic management in
procurement and purchasing, movement, storage,
inventory management and information flow between
departments of the organization of value added
on cost reduction as well as effectiveness [12] [13].
Many researchers and academicians such as Bowersox,
Closs and Cooper [14] and Mangan and De Marco [15]
support Martin Christopher’s definition of forward
logistics management. By the way, in Asia Context such
as Tepprasit and Yuvanont[3] defined the definition of
forward logistics management was the process of
producing, fund and information flow from the origin
point (upstream) to end-user (downstream). Also,
the value will create in every activity. Also, Punyapon
Tepprasit [16] who was written the best research article
award from the famous institute name as National
Institute of Development Administration (NIDA).
Tepprasit defined the forward logistics management
definition in one word as “Balance” and explained the
word of balance mean organization supply (Upstream)
matching the customer demand (Downstream) [17].
In theoretical articles introduced the forward logistics
management has 14 activities that consist of materials
movement, storage and warehousing, packaging,
transportation, inventory management, order fulfillment,
forecasting, time scheduling and manufacturing plan,
procurement and purchasing, customer service,
location, reverse logistics, sporting activity, waste and
remanufacturing [2] [11] [14]. By the way, In the present,
many academicians and theoreticians separate reverse
logistics, remanufacturing and waste to reverse logistics
management.
Reverse Logistics Management: Reverse logistics
management (RLM) was the new concept of management.
RLM was founded in years of 1998 by the most famous
academician and theoretician is Dr. Dale S. Rogers and
Dr. Ronald S. Tibben-Lembke [18] both pioneer ad-driven
the reverse logistics management concept. Rogers and
Tibben-Lembke introduce the reverse logistics
management's definition was the process that involves
the management planning, operation and control on cost
efficiency and effectiveness from raw materials flow,
work-in-process inventory and finished goods,
also information from end user to point of origin for the
objectives of recapture the value from product defect or
waste disposal. In the year of 2001, The professor in
Europe name as Moritz Fleischmann who was worked with
IBM and Heineken in criteria of logistics and supply chain
management. In the present, he works with Production
and Operations Management, European journal of
Operational Research and MIT Sloan Management
 Middle-East J. Sci. Res., 24 (4): 1477-1482, 2016
Review [19]. Moritz Fleischmann developed the reverse
logistics management’s definition and defined the reverse
logistics management was the process that involves the
management planning, operation planning and enhance
the efficiency and effectiveness control of inbound flow,
inventory management and information to set up the
supply chain management direction that conform with
recapture the value from product defect or waste disposal.
The important objective of reverse logistics management
was valued recapture from any product defect.
The Relationship Between Forward Logistics
Management and Reverse Logistics Management: In past
decades, no one named the logistics in forward or
backward also reverselogistics. Because the term of
logistics concentrated the only forward flow from
upstream to downstream. The Organization focused only
how to input the materials to manufacturing or operation
process then to keep finish goods in warehouse and
distribute to market [11]. Nowadays, customer had more
power and can choose the product that they have
positive perception in service quality. The organization
must have decision to change or die. All organizations
have a return policy in automatic case such as
warrantyand value recapture by reuse and recycle. By the
way, organizations who want to success in reverse
logistics management that must considerate the forward
logistics to design the product and choose green
materials that fit for reuse, recycle and waste disposal.
If an organization don’t plan the reverse logistics in the
first point of forward flow that will effect on reverseflow
to many problems in activities such as can’t replace the
components by reuse components and some parts can’t
to waste disposal that effect on the environment.
The Relationship Between Reverse Logistics
Management and Organization’s Performance:
The reverse logistics management had important factors
could drive the operation to success in long-term cost
reducing and value recapture. First of all, reverse logistics
management was the new integration management that
enhance the reverse flow of product return to sort out
value component from waste then send a value
component to remanufacturing or refurbishment
process for value recapture by reuse and recycle [19].
Also, send a waste component to waste disposal.
However, the reverse logistics management model
focused to raise the high performance especially
reliability, responsiveness, agility, costs and assets.
An organization who had a best practice in reverse
logistics management that means they can enhance the
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service quality to customers that create reliability and
responsiveness level [18]. Also, the reverse logistics
management could help organization for support the
manufacturing process to replace materials and
components by reuse or recycle parts and components
that created the agility in process.In cost reducing term,
reverse logistics management changed the wayof normal
business term to social responsibility term that created
how to cost reducing by reuse or recycle process in
long-term. By the way, reverse logistics could improve the
business assets.
Methodology
Research Design: This study was used 2 approaches
qualitative research method. First, the phenomenology
approach [20] [21] that data collected from key informants
who are thelogistics and supply chain specialists in
assembly to order business. Second, documentary
research by related research and theoretical papers.
Key Informants and Data Collection: The researcher was
used in-depth interviews method with 21 key informants
and focus group method with 15 key informants
that are the logistics and supply chain specialists.
Also documentary research method by literature review
from 614 research and theoretical articles.
Data Analysis: The researcher was used content analysis
to summarize the components of reverse logistics
management and synthesis the related work paper for
concluding the research finding [22].
RESULTS AND DISCUSSION
The result from triangulation method in in-depth
interviews, focus group and documentary research
indicated that the three major components of reverse
logistics management. 21 key informants in in-depth
interview method said about 3 components of reverse
logistics management such as return policy,
remanufacturing and waste disposal that conforms to 15
key informants in focus group method. In documentary
research, research was used 614 research and theoretical
articles for the literature review. The result of
documentary research conforms to result from in-depth
interviews and focus group. The literature review
indicated that the Rogers and Tibben-Lembke’ research
publication paper [18] both are the reverse logistics
management original paper thatconclusion the
components of reverse logistics management had 3
components (in Figure 1).
 Middle-East J. Sci. Res., 24 (4): 1477-1482, 2016
Fig. 1: The Components of Reverse Logistics
Management
First, return policy and procedure is the highest
important component can drive all activities in reverse
logistics. Because return policy and procedure drive the
way to improvement any activities in the organization
to new directionsupport the reverse logistics
management. It conforms to Kuczenski and Geyer [23],
Turrisi, Bruccoleri and Cannella [24], Jensen, Munksgaard
and Arlbjørn [25] Rieck and Zimmermann [26],
Bing et al., [27], Cojocariu [9], Draskovic [28],
Abdullah and Yaakub [5], Zaarour et al. (2014)[29].
They founded the return policy and procedure was one
of the major reverse logistics management components.
It had a very important process. Managers must give
precedence to policy design that covers the reasons for
product defect in using the process at end users point for
service accommodation to the highest quality in product
and service. Also, focus on design and choosing the
product return channels in the condition of time, cost and
service.
Second, remanufacturing or refurbishment.
This process has important when organizations want and
need to value recapture from products or tools defect.
Remanufacturing or refurbishment involve 2 methods
such as reuse and recycle. Both are difference way to do.
Reuse involve the how to take some quality components
in product defect replace to the new product in
completely. But, recycle involve the how to refurbishment
some components such as plastic to new components for
new products. Remanufacturing or refurbishment
process has important activity that's components
sortingoperation. That help managers or organization to
the separation between the value from non-value
components that conform with Lee et al. [30],
Bernon, Upperton and Cullenv [31], Kye, Lee and Leev
[32], Nagy, Wassan and Salhi [33] and Bravo and
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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],
Tang et al., [36] and Zhang, Hui and Chen [37] introduced
the important of waste disposal. All managers and
organization must give precedence to waste disposal
process design in only low effects condition. If any
organization used the waste disposal in a wrong way that
the total effect will make air pollution and contamination.
In the case of the electronics industry in a developed
country such as EU country, their operation follow the
WEEE policy that includes the good way to waste
disposal in electronics products. Some researcher such as
Kuczenski and Geyer [23] and Abdullah and Yaakub [5]
mention in landfill method. Managers or organizations
must choose the landfill far from community, village,
forest and etc. that for risk protection from chemicals in
waste.
CONCLUSION
This research aimed to study on the components of
reverse logistics management. Researcher was used 2
approaches qualitative research method in the
phenomenology approach by the in-depth interview with
21 key informants and focus group method with 15 key
informants that are the logistics and supply chain
specialists. Also literature review from 614 research and
theoretical papers. The result indicated that the
components of reverse logistics management have three
components. First Return Policy and Procedure (RPP) was
the guidelines for product return operation from end
users, wholesaler, or retailer back to origin place or
manufacturer. RPP must have the reasons and types for
product return, also the planning of backhaul such as
route, time table, method, how to and etc. Second,
Remanufacturing or Refurbishment (ROR) was procedure
or processfrom the beginning step that was components
sorting for inspection to finding the value from product
defectthen send back to a remanufacturing process for
reuse or recycle. The last one, Waste disposal (WAD)
was procedure or process that occurred after components
 Middle-East J. Sci. Res., 24 (4): 1477-1482, 2016
sorting process. WAD involved the process of
finding the non-valued components that can’t use for
reuse or recycle then send to demolition follow the
law-abidingness.
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