Integrated reverse logistics: Case study of a product take-back program

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Journal Title

Journal ISSN

Volume Title

Insinööritieteiden korkeakoulu | Master's thesis

Date

2023-06-12

Department

Major/Subject

Sustainable Urban Mobility Transitions

Mcode

ENG3085

Degree programme

Master’s programme in Urban Mobility

Language

en

Pages

106 + 4

Series

Abstract

With the rise in environmental concerns and the growing focus on the circular economy, reverse logistics has gained significant attention from academia and the business world as one of the key enablers. However, it is characterized by high uncertainties, operation complexities and barriers to implementation. Consequently, a need for a systematic integrated reverse logistics framework that can help organizations effectively plan, execute, and control reverse logistics has been identified. In response, this thesis proposes a theoretical framework that offers a comprehensive understanding of the challenges and components associated with the implementation of integrated reverse logistics such as activities and performance measurement. To explore the practical implications of the framework, the research adopts a qualitative approach and evaluates the current state of reverse logistics at the case company. Through this evaluation, a gap analysis is conducted to compare theory with the existing practices and to bridge the gap between theory and practice, offering insights into areas of improvement and potential alignment between the proposed framework and the current operations at the case company. In evaluating the framework, particular attention is given to the strategic fit of a software-as-a-service (SaaS) solution that digitalizes the physical waste flows. The findings highlight the potential of incorporating this solution to improve the existing reverse logistics system of the case company. By addressing operational and technical challenges, facilitating collaboration and information integration among actors, and improving the traceability of products, the solution demonstrates promise for informed decision-making. However, the challenges such as perceptions of poorer quality products after recovery, lack of consumer awareness about returns, and unregulated secondary markets may require a different approach, such as education campaigns or regulatory interventions. To overcome organizational barriers and lack of strategy, the case company is suggested to undertake pilot projects, test digitalization within current workflows, and monitor key performance indicators (KPIs) through digital platforms. Overall, this thesis contributes to the development of a theoretical framework of integrated reverse logistics and provides insights into the challenges and potential solutions for implementing such a framework.

Description

Supervisor

Mladenović, Miloš

Thesis advisor

Bakajic, Misa

Keywords

reverse logistics, circular economy, product take-back, digitalization, traceability, digital platforms

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