Reverse Logistics: Literature Review, Driving Forces, and Recovery Options

Reverse logistics
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Running Head: Reverse logistics
Table of Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................3
Literature review on Reverse logistics............................................................................................4
Definitions of Reverse logistics...................................................................................................4
Methodology................................................................................................................................5
Driving forces of reverse logistics...........................................................................................5
Internal drivers.........................................................................................................................5
External drivers........................................................................................................................7
Strategic utilization of driving forces..........................................................................................8
Strategic implication of barriers..................................................................................................8
Recovery options of the reverse logistics system......................................................................10
Critical features of the recoverable manufacturing system.......................................................10
Hindrances and Drivers of Reverse Logistics...........................................................................12
Case study......................................................................................................................................13
Interpretation of the useful logistics network type in the organizational context of H & M.....13
Identification of performance matrices for reverse logistics system of JIS Logistics...............13
Differences between the Forward and Reverse logistics...........................................................15
Recommendations..........................................................................................................................16
Conclusion.....................................................................................................................................17
References......................................................................................................................................18
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Running Head: Reverse logistics
Executive summary
The primary purpose of this report is to present a well-articulated literature review on Hennes &
Mauritz AB (H & M) in the global logistics market. Factors of reverse logistics, recovery options
in terms of credit or value and features of recoverable production unit are critically mentioned in
the strategic report. Through this study, suitable and sufficient logistics network can be
identified, and the scope of improving the effectiveness of reverse management for H & M can
be understood. The critical factors of reverse logistics are further defined in this report. These
factors of reverse logistics are useful for evaluating the performance and productivity rate of H &
M in terms of better customer satisfaction capital growth, profitability, cost-effectiveness,
innovativeness and competitive advantage.
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Running Head: Reverse logistics
Introduction
The definition of sustainable supply chain management has changed with the revolutionized
globalization, technological advancement and effective communication. This assignment on
reverse logistics aims to evaluate the impact of various success factors of reverse logistics and
different recovery and distribution operations in the context of H & M in the global market
scenario. H & M holds a legacy of 72 years in the global logistics and supply-chain market of
clothing apparel and accessories. Being a fashion level company, H & M offers services for the
client companies through procurement, transportation and distribution. Global logistics solutions
include superior distribution services and warehousing as essential parts of supply
chain management programs across the globe. The company is dedicated to delivering
transportation and value-added service to small, medium to large enterprises with customized
solutions for their significant stakeholders like shareholders, suppliers, manufactures and finally
customers (H & M, 2019).
This assessment in the context of H & M would help interpret the best reverse logistics solutions
and identify the significant hindrances that are lowering the performance scale of the company.
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Running Head: Reverse logistics
Literature review on Reverse logistics
Definitions of Reverse logistics
Supply chain management is vital for proper channelization of goods and services. Supply chain
management involves activities like planning, implementing and supervising over the fair
balance between the inputs of raw materials and outcomes in terms of services and manufactured
goods (Agrawal, Singh and Murtaza, 2015). The Council of Supply Chain Management
Professionals has demonstrated that reverse logistics focuses on the cost-effective and timely
circulation, consumption and disposal of raw materials, finished goods, information and services
from the manufacturers to the end users (Mathiyazhagan et al. 2013). The reverse logistics
system is comprised of activities like moving of resources or products to the end users to
collecting the used products for refurbishing and returning of damaged or used products to the
warehouses (Mangan, Lalwani and Lalwani, 2016).
Through this process, the customer gets values for their belief over the goods and services that
are offered by companies. Essential activities like returning of products because of quality issues,
collecting damaged goods from the customers, recycling issues, disposition of hazardous
products, recovery of assets etc. are part of this reverse management framework.
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Running Head: Reverse logistics
Methodology
In this literature review on reverse logistics, the motivating drivers and major hindrances are
discussed with relevant examples.
Driving forces of reverse logistics
Supply chain management is essential for managing the movement of goods and products to the
consumer. As stated by Suryanto, Haseeb and Hartani, (2018) supply chain management needs to
achieve sustainability in terms of better communication, easy returns and secure transaction of
money. In the closed loop supply chain method creation, delivery and recycling of disposed of
products can be better understood with sustainable supply chain management (Govindan,
Soleimani, and Kannan, 2015). Driving forces of reverse logistics can be bifurcated into internal
and external drivers.
Internal drivers
Based on motivational approaches of the reverse logistics practices, the internal drivers can be
identified. For instance, profit-making strategies like the cost-effectiveness, capital growth and
profitability are regarded as the motivational sources that can elevate the operational
effectiveness of reverse logistics (Hofer, Knemeyer and Murphy, 2015).
Operational drivers
 Operational driving forces include the factors that are essential for an organizational
environment.
 If the organizations collect all those disposed of but recyclable products and refurbish
those into the workflow, manufacturing organizations and warehouses can gain additional
monetary, operational profit and reduce the extravagant expenditure.
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