Reverse logistics: its concept and drivers in New Zealand: case studies

Abstract

Companies have achieved cost-reduction, marketing advantage and attention for the natural environment as some of the benefits from their reverse logistics (RL) activities. Many companies have considered RL as a strategic goal because it is part of the supply chain that offers value. Such value relates to the ability to efficiently and effectively manage 'returns'. Returns in this thesis refer to used products, materials and packaging as well as waste. The RL concept has gained increased attention by companies and government. Consumers are starting to be aware of this as an indispensable service after sales where they can have their used products retrieved and properly disposed. Only a few companies in New Zealand have been leaders in the RL area since they implemented it in the 2000's without being any regulation. It was found in the study that more and more companies are looking at implementing RL, no matter which industry they are in or their position in the supply chain. However, little is known about what factors promote RL practices for companies in New Zealand. The broad objective of the study was to explore factors driving the implementation of RL for companies in New Zealand from an environmental perspective. There were seven main factors found in New Zealand: stakeholders, green sustainability, leadership, marketing, economic, regulations and information. Moreover it was aimed to achieve a clear understanding of the RL meaning as it was not commonly heard in New Zealand. Many companies in New Zealand refer to RL backward flow as a product stewardship scheme, extended producer responsibility (EPR) and resource efficiency. Ten companies from different industries and a Ministry participated in this research, including manufacturing and retailers. For some companies, RL implementation was highly mature than others who where in the initial stages of implementation. The method used to collect data was semi structured interviews. All interviews were transcribed by the researcher and analysed accordingly. Relevant themes were assigned along the transcripts to organise the study's content. Those themes included RL concept, main factors, resources, problems, benefits, strategies and greening perspective. Quotations from the interviewees were used in the findings to support information. The findings from the research suggest that companies in New Zealand and Europe have similar factors influencing RL implementation. Alvarez-Gil et al., (2007) found that in Spain, stakeholders, environmental issues, regulations and change in strategic focus (also known as leadership) have encouraged activities such as returns, refurbish and recycle. The only factor that was not found in other studies was information. Furthermore findings show that New Zealand as a whole is leader in pro environmental practices but still there is room to improve on it. Managerial implications are presented in the conclusions chapter. Those implications were deducted from the information obtained from findings based on the researcher's judgment. They are practical and logical so that any company or person wanting to implement RL can benefit by having some advice.