REVERSE LOGISTICS PRACTICES IN THE SPANISH SMEs CONTEXT

Abstract

Consumers and retailers return product to manufacturers due to a variety of reasons: the product does not meet customer expectation, the product is defective or there is excess inventory, among others. Therefore manufacturers need to handle the returned product in an effective way to improve customer's relationship and decrease its associated costs.This paper describes the return processes of two Spanish companies, pertaining to the Small and Medium Enterprises (SMEs) group, focusing on the forward and reverse flows in the supply chain and highlighting the relevance of managing reverse supply chain issues efficiently. The methods used are interviews with the main managers at both companies. We have found that the main motivation of these companies to accept returns is to create a good company's image. Additionally, the same design of return processes and logistics networks has been identified in both companies, independently of the company's industry sector and the management qualification.