Factors Affecting the Efficiency and Effectiveness of Reverse Logistics Process

Abstract

The purpose of this research is to identify the current reverse logistics practices adopted by soft drink companies and the prominent factors which can decide the efficiency and effectiveness of the entire process of the reverse logistics channel. The paper employs Pareto analysis and the Analytical Hierarchy Process (AHP) method on data collected from logistics professionals involved in the software industry in Sri Lanka using two questionnaires. As the prominent factors, transportation, accidents, packaging, a method of storage, the cleaning process and sorting process was identified and the first four prominent factors have a higher influence on both measures of efficiency and effectiveness. They can also identify the external factors which can emerge inefficiencies due to outsourced dealers. Lack of previous literature on the subject matter and the difficulty to access the filed data were the main limitations of this study. The identified factors will help to identify the correct root causes for the inefficiencies of the current reverse logistics practices and concentrating on these factors will give an opportunity for the soft drink industry players to successfully implement a sustainable green supply chain which reduces waste at each stage of its forwards and reverse logistics process. Transportation, Accidents, Packaging, and Storage have been previously identified as considerations in reverse logistics processes and the current study showed that they have a higher impact on both efficiency and effectiveness on reverse logistics and these factors should be given specific consideration while in the operations.