Value generation of remanufactured products: Multi-case study of third-party companies

Abstract

The importance of reverse logistics has increased owing to environmental factors and recent legislations. In this context, the market for remanufactured goods has become attractive. Manufacturers, retailers, and third-party companies have improved return programs and operations that add value to the return chain for electronic appliances, rather than treating it as a secondary process. The objective of this study is to identify the variables related to value generation in the reverse logistics of electronic products from the perspective of third-party companies. Reverse logistics of electronic products depends much on the context and local regulations; in addition, the fact that there are few studies on developing countries points to an important gap in extant research. This study presents the influence of quality and warranties, processing time, and partnerships between third-party companies, manufacturers, and retailers on the value generation from remanufactured products. These variables are related to optimal results and optimistic expectations for growth among third-party companies. These internal factors, together with an analysis of external factors and product portfolios, complement the scenario description for the cases studied. The main contribution of this study is to highlight the major factors, which are presented in the framework. The lessons learned can be used in other contexts involving third-party companies.