Towards an investigation on the determinants for effectiveness and efficiency of reverse logistics systems (RLS)

Abstract

This article deals with the influence of economies of scale and postponement on the efficiency and effectiveness of reverse logistics systems (RLSs). In a global way, it aims to provide an understanding of RLSs to generate knowledge of practical and theoretical character. Starting from a generic model of circular flow of materials, the system studied is positioned between the final consumer and the traditional or direct supply chain. It is a qualitative approach over two case studies carried out in Portugal and Brazil dealing with scraptires. One deals with management system while the other deals with the reverse logistics system. As conclusions, the efficiency of RLSs is aided by economies of scale. Postponement has positive effects on efficiency by increasing the system capacity reducing logistics costs which indirectly leads to economies of scale, having a positive influence on the effectiveness of RLSs. According to what has been stated in this paper, the coordination between the direct and reverse flow is a typical case of a closed circuit.