Impact of reverse logistics product disposition towards business performance in Malaysian E&E companies: A conceptual study

Abstract

Generation of electronic waste is concurrent with higher demand for equipments consumed by households and business institutions. Exponential growth of waste that enters landfill is a valuable secondary resource that presents cost-saving opportunities for OEMs through take back programs because recoverable assets would otherwise be worthless and hazardous to environmental and human health. Research on reverse logistics practices will focus in product disposition as recouping product in whole or in subassemblies, components and materials contributes prolonged usefulness in various stages of product lifecycle. Ambiguous and profit sensitive product disposition options such as repair, refurbish, remanufacture, recycle and disposal have directed this research to assess the product for availability of added value recoverables and to anticipate the complexity of work to be rendered within each options so that returned products garner substantial secondary value. Products are evaluated prior to selecting recovery option in order to optimize restoration of products' and parts' functional qualities for reuse or harvest recyclables to salvage some material and energy resources. This study presents a conceptual framework for analyzing the impact of reverse logistics among electrical and electronic companies in Malaysia which have established environmental management system that are ISO 14000 certified. Where a product and its constituents can be reprocessed, it is also essential to address the potential business benefits to ascertain the viability of reverse logistic activities.