11th IFAC Workshop on Intelligent Manufacturing Systems ThET1.

4
The International Federation of Automatic Control
May 22-24, 2013. São Paulo, Brazil

A Taxonomy of Current Literature on Reverse Logistics

M Granlie*, H-H Hvolby*, R A Cassel**, I C De Paula**, C Soosay***

*Centre for Logistics, Department of Mechanical and Manufacturing Engineering,

Aalborg University, Denmark (e-mail: mads@celog.dk; hhh@celog.dk)
**Departamento de Engenharia de Produção e Transportes, UFRGS, Brasil
(e-mail: cassel@producao.ufrgs.br; istefani@producao.ufrgs.br)
***School of Management, University of South Australia (e-mail: Claudine.Soosay@unisa.edu.au)

Abstract:

The objectives of this article are to study reverse logistics in a broader perspective involving aspects such
as maintaining, servicing, reusing and disposing products. In addition to reverse logistics this study
involves after sales service, green supply chain management, product life-cycle management. The main
contribution is a literature taxonomy that clearly shows that these areas overlap in their definition and are
interconnected. Finally, industrial examples, conclusions and research directions, are presented.
Keywords: Reverse Logistics, Green Supply Chain Management, After Sales Service, End of Life,
Taxonomy
Moreover, after sales services involve large investment
1. INTRODUCTION
outlays as found in a Gartner Group study, that a buyer of a
There is increasing pressure by industry and government to locomotive engine ends up spending 21 times its purchase
reduce the environmental impact and resource consumption value to support its use (Wise and Baumgartner, 1999).
in manufacturing (Srivastava, 2007). This not only involves
manufacturing processes, logistics and product design, but 2. REVERSE LOGISTICS
also the use, maintenance and life-cycle of products (Sarkis,
Zikmund and Stanton (1971), Ginter and Starling (1978),
2003). De Brito et al. (2002) illustrate the main motivations
Murphy (1986), Cairncross (1993) and Stock (1992) are
for companies engaging in reverse logistics and their systems
among early researchers in the field who have investigated
to control and manage the upstream directional flows in the
problems such as reverse distribution, recycling and re-
chain. These main motivators are:
manufacturing mainly from an operations research or
• Economics: The costs of reusing or repackaging products marketing view.
are better alternatives for direct costs and revenues and/or
Reverse logistics deals with the logistical challenges that
brand value and corporate reputation.
products pose after they have been sold to the customer, and
• Legislation: Advanced economies have put in place especially when the product has reached its end of useful life.
legislation that aims to reduce the consumption of natural It covers activities such as distribution, sorting, re-selling,
resources and GHG emissions by companies. refurbishment, remanufacturing, recycling and disposal
among others, and the aim is to recapture value of products
• Extended OEM & importer responsibility: Directives after the point of sales and/or after end of useful life (Ellram
such as Waste Electrical & Electronic Equipment, and Carter, 1998), (Tibben-Lembke and Rogers, 2001)
Restriction of use of Hazardous Substances and End of (Dowlatshahi, 2000).
Life Vehicles.
One of the first works that consolidated reverse logistics into
The main focus of this article is the after-life phase of a an actual overarching field of study, was the literature review
product involving reverse logistics, but also related areas and framework presented by Ellram and Carter (1998). They
such as green supply chain management, product life-cycle called for a more holistic view and provided, among other
management and after sales service that are relevant to things, a hierarchy of activities for recapturing value:
achieving both reduced environmental impacts and improved Resource reduction, re-use, recycling and disposal with and
competitive and economic performance. However, product without energy recovery. However, it is argued that resource
life-cycle management and after-sales service are included reduction in the primary flow is more closely related to green
only to the extent they relate clearly to reverse logistics. supply chain management than reverse logistics.

After sales service belongs by definition to the middle-of-life Tibben-lembke and Rogers (1999) made one of the most
phase, but is incorporated in this study as it entails reverse popular definitions of reverse logistics that has seen
logistic elements such as refurbishment and remanufacturing. widespread use in subsequent work: “the process of planning,

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implementing, and controlling the efficient, cost-effective
flow of raw materials, in-process inventory, finished goods
and related information from the point of consumption to the
point of origin for the purpose of recapturing value or proper
disposal.”
However, de Brito and Dekker (2002) critique this because
the definition implies that the flow must go back to the same
origin as the original product, but not in alternative supply
chains, which is more often the case. Furthermore, we
advocate that for the least extensive options for reverse
logistics such as reuse, repackaging, refurbishment and
remanufacturing, it is not necessary to involve the original
upstream members of the chain. Finally, it can be argued that
as reverse logistics implies a decidedly reverse flow, the in-
process inventory and raw materials from recycled products
even in a remanufacturing setting must rather be considered
part of the closed loop supply chain than strictly reverse
logistics.
The European Working Group on Reverse Logistics (1998)
has put forward a more adept definition of reverse logistics:
viz; “The process of planning, implementing and controlling
flows of raw materials, in process inventory, and finished
goods, from a manufacturing, distribution or use point to a
point of recovery or point of proper disposal”. Although it is
not stated outright this definition implies that reverse logistics
does not include the forward flow anymore.
3. GREEN SUPPLY CHAIN MANAGEMENT (GSCM)
GSCM focuses on reducing the environmental impact of the
supply chain, while doing so without compromising
economic performance and perhaps even benefiting
economic performance. The key issues in GSCM are
performance measurement on environmental parameters,
information sharing, and collaborating on best practices
related to resource reduction. Furthermore many articles
point towards the need to incorporate environmental
information in ERP systems and design these systems to
handle reverse flows of goods (Chouinard et al., 2005)
(Wadhwa et al., 2009) (Sarkis et al., 2005).
One of the first researchers on Green Supply Chain
Management, was Beamon (1999) who advocates that GSCM
is in part the extension of the supply chain in order to create a
closed loop of materials, which aligns with the goal of
reverse logistics and closed loop supply chain management,
but that Green Supply Chain Management should go further
in the ambition to reduce the environmental impact. She
states a set of strategic and operational issues that are added
to the supply chain management field to close the loop and
enhance the understanding and reduction of the
environmental impact of the supply chain. Green Supply
Chain Management seems broader than Reverse Logistics but
is not much concerned with the After Sales Services.
Sarkis et al. (2005) and Mondragon et al. (2011) state that
measures for environmental criteria must be implemented
both internally in the company and extended to both suppliers
and B2B customers to gain the full effect. Several studies
have shown that good collaboration and the ability to work
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together between organizations in an informal manner based
on trust improves the dissemination and performance of
green supply chain practices. Collaboration and trust also
enable wider information and knowledge sharing in the
supply chain (Højmose et al., 2012; Vachon and Klassen,
2008).
4. PRODUCT LIFE-CYCLE MANAGEMENT (PLM)
PLM covers the entire product life-cycle from initial
conception and design until end of life. In some papers the
life-cycle ends when the first user discards the product, while
other papers define end of life as when the product is no
longer in a state that is fit for its intended use (Westkämper,
2001). PLM has gained increased attention over the years as
it holds great potential for decreasing the environmental
impact of the production and use of goods. In particular, the
combination of products and services into Product Service
Systems to provide the function instead of the product seems
to be a promising avenue (Mont, 2004).
Many of the product life-cycle management decisions that
greatly influence the environmental performance of the
supply chain and the product during its use are made in the
initial stages of development (Westkämper et al., 2001).
Furthermore, product life-cycle knowledge when the product
is first launched can help determine the scale and timing of
the reverse distribution network if necessary. Product life-
cycle information combined with information sharing from
green supply chain management could improve many aspects
of environmental performance and also economic perfor-
mance especially for reverse logistics, if the information
reaches the right entity (Luttropp and Johansson, 2010).
However, White et al. (2003) describe quite accurately how
information sharing becomes difficult if e.g. the OEM is
oblivious to the companies that process discarded products.
5. AFTER SALES SERVICES
For after sales service, the primary reasons for reverse
logistics are the return of products due to seasonality and
obsolescence (e.g. fashion or design), functional problems,
desirability, end of life and product recalls. Many companies
adopt lenient policies for their product returns as a customer
service differentiator, and the surge in sales through the
Internet (Amazon, Ebay, OLX etc.) has hampered the ability
to check goods for matching return criteria (Bernon et al.,
2011). This poses a problem particularly in the consumer
electronics industry, since many “no-fault-found” products
are returned to the OEM for repair with all the associated
costs for warehousing, transport and depreciation (Bernon et
al., 2011). For fully functional products returned because the
consumers did not want it, it is essential that the product is
promptly channelled to alternative primary or secondary
markets.
Another aspect of after sales returns or reverse logistics is
maintenance, where e.g. car parts requiring change undergo
the reverse flow, and the car returns to the costumer. To
accurately dimension the reverse distribution network in this
area, it is necessary to be able to make good predictions of
the development in the installed base (Tsiliyannis, 2011).
276
 Taxonomy Relation to
No. Author and year Unit of analysis Types of flows
criteria other areas
1 Akasaka et al. 2012 PLM System
2 Arimura et al. 2011 GSCM Company W, P, F
3 Beamon 1999 GSCM Industry W, F, M, E RL
4 Bernon et al. 2011 RL Company F, P, I GSCM
5 Chouniard et al. 2005 RL Supply chain P, I, M GSCM
6 De Brito et al 2002 RL RL system P, F, I, W GSCM, PLM
7 De Brito et al. 2010 RL Company P, F, I GSCM (PLM)
8 Dombrowski et al. 2012 AFS Company P, I GSCM, PLM
9 Dowlatshahi 2000 RL RL system M, F, I, W
10 Ellram et al 1998 RL RL system P, W, F, I GSCM
11 Fleischmann et al. 1997 RL Any level P, F, I
12 Geum and Park 2011 PLM PS system RL
13 Hagelaar et al. 2004 PLM Company P, W, I, K GSCM
14 Højmose et al. 2012 GSCM Supply chain F, P, I
15 Jayant et al. 2011 GSCM RL system M, I RL!
16 Jørgensen 2008 PLM System P, I, M, F GSCM
17 Kiritsis et al. 2012 PLM System
18 Koh et al. 2012 GSCM Supply chain W, M, F RL
19 Krozer 2004 PLM Company
20 Krumwiede et al 2002 RL Company P, I, F, W
21 Kumar et al 2006 GSCM Company W, M, F RL, PLM
22 Kumar et al 2008 RL Industry F, P, I PLM, GSCM
23 Luttrop et al 2010 PLM Product P, I, W RL
24 Minner 2001 RL System P, I, F GSCM
25 Minner et al 2009 RL Supply chain P
26 Mondragon et al. 2011 GSCM Company I, P, F RL
27 Mont 2004 PLM PS system P, E, W RL, GSCM, AFS
28 Kim and Park 2012 GSCM System I, F, M RL
29 Perdakis, 2012 PLM Systems P, I
30 Rogers et al 2001 RL RL market P, F, I, W GSCM
31 Rogers et al. 2012 RL Any level P, I, F, M, W
32 Rolstadås et al 2008 AFS Industry P, F (Service)SC
33 Sánchez et al. 2004 PLM Company P, I GSCM
34 Sarkis 2003 GSCM Supply chain P, I, F, M, W RL
35 Sarkis et al 2005 GSCM Company M, F, I, K RL, PLM
36 Sarkis et al. 2006 GSCM Company P, F, I, K RL, PLM
37 Sarkis et al. 2010 GSCM Company P, I, K RL
38 Sarkis et al. 2012 GSCM Supply chains M, S, F, I, W RL, PLM
39 Seuring 2004 PLM PLM P GSCM
40 Shi et al. 2011 GSCM Product family P RL
41 Shih 2001 RL Industry P, W, I, F
42 Srivastava 2007 GSCM Review P, I, F RL, PLM
43 Stammen et al 2004 GSCM Company M PLM
44 Sundin et al 2008 GSCM Company F, P, K RL
45 Testa et al 2010 GSCM Company K, F, M RL, PLM
46 Tsyliyannis 2011 PLM Product flow P RL
47 Umeda 2012 GSCM Company M, P RL
48 Umeda et al. 2012 PLM PLM P, I RL, GSCM
49 Vachon et al 2008 GSCM Supply chain M, F, K
50 Van de Velde et al. 2004 GSCM Company P, F, W I RL, PLM
51 Wadhwa et al. 2009 RL System I, P, F GSCM
52 White et al. 2003 RL Company P, I, F, GSCM
53 Westkämper et al. 2000 PLM P GSCM, RL

Table 1. Taxonomy of Reverse Logistic. Criteria used: Reverse Logistics (RL), Green Supply Chain Management (GSCM),
Product Life-cycle Management (PLM), After Sales Service (AFS). Flow types: Waste (W), Products (P), Materials (M),
Information (I), Knowledge (K) or Financial (F).

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6. TAXONOMY OF REVERSE LOGISTICS
LITERATURE
This paper presents a taxonomy of the reverse logistics
literature which is summarized in Table 1. To limit the work,
published material from the year 2000 onwards have been
selected and supplemented by other papers by cross-referen-
cing. Purely math papers have been excluded, because the
focus in this paper is on the topics investigated rather than the
approach to problem solving. For a more in depth analysis of
mathematical approaches within the field see Srivastava
(2007). In addition PLM papers are only included to the
extent that they cover RL and product service systems, since
product service systems have a component of reverse
logistics. This results in 53 selected articles for the taxonomy
of the Reverse Logistics literature. An overview of the
results is presented in the previous table.
The analysis shows that Reverse Logistics, Green Supply
Chain Management and Product Lifecycle Management are
inter-related especially on the areas that affect the supply
Figure 1: Taxonomy of Reverse Logistics. The illustration seeks to position the papers and the
taxonomy criteria with a focus to show overlap and differences. The numbers refer to table 1.
7. CONCLUSIONS
The adoption of a taxonomy for all those issues arising within
logistics has gone a long way to clarify the connections of the
various interrelated parts. The examples show how each
defined sub-section is intimately connected to each other
although we cannot say that they are connected
systematically at this point. The taxonomy provides some
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chain and reverse logistics areas. As stated earlier the
literature presented here is primarily focusing on Reverse
Logistics and Green Supply Chain management, while
PLCM and After-Sales Service is included due to their clear
overlap, but the selected papers do not show a complete
picture of the later two topics.
Figure 1 represents the overlaps and differences between the
areas and depicts which articles cover which areas. It is clear
from the figure that after sales service seems detached from
the other subject and that GSCM and RL seem to overlap
completely. The detachment of after sales service could
suggest that it does not consider the service and logistics
connected to RL and GSCM to that large an extent. The
overlap between GSCM and RL indicates that RL is one of
the main contributors to the ability of GSCM to reduce its
environmental impact, but the literature also shows that
definitions are overlapping and seem ambiguous.
However, our literature review indicates that a more generic
accepted model within Reverse Logistics and the relevant
areas would be relevant.
insights and a starting point for researchers to agree on
definitions and allows researchers to move towards the
identification of more subtle interconnections.
For practitioners this taxonomy helps understand that there
are many terms that cover some of the same practical
problems, and that several approaches and problems play into
each other. It is therefore necessary to consider the different
areas conjointly when applying GSCM, RL PLM or After-
sales services.
278
 ACKNOWLEDGEMENTS
The authors would like to express their gratitude to the
European Union for supporting the Prossalic project and to
Chris Martin for editing the paper.
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