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How the reverse supply chain impacts the firm’s financial performance

How the reverse supply chain impacts the firm’s financial performance Although manufacturers have traditionally viewed reverse supply chain (RSC) activities as a costly nuisance, more recent research has found that the RSC can contribute to the firm’s financial performance. The purpose of this paper is to identify how the RSC can contribute to the firm’s financial performance and examine the exogenous contingency factors decisive for the contribution’s size. Because the exogenous factors are outside the control of the firm’s operations and supply chain management, the factors influence the RSC’s financial contribution irrespective of managerial policies and design decisions.Design/methodology/approachThe paper applies a systematic literature review using the sequence of planning the review, searching and screening literature, extracting information from the selected literature, and synthesizing and analyzing findings. In total, 112 papers were included.FindingsThe study has identified 15 distinct opportunities for RSC-contribution to the firm’s financial performance. The study has identified 56 contingency factors. These are related to market segmentation, customer behavior, product design, and the firm’s distributor network. The study includes an interrelationship network between factors and the RSC’s contribution.Practical implicationsFor managers, the paper shows how the RSC can increase the firm’s financial performance and which contingency factors determine whether operating a RSC will be financially viable if implemented.Originality/valueWhile extant literature includes several reviews about RSC-related managerial policies and design decisions, this paper contains the very first collection of RSC-contribution opportunities available to manufacturers as well as the first review of exogenous contingency factors. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Physical Distribution & Logistics Management Emerald Publishing

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References (120)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
0960-0035
DOI
10.1108/ijpdlm-01-2017-0031
Publisher site
See Article on Publisher Site

Abstract

Although manufacturers have traditionally viewed reverse supply chain (RSC) activities as a costly nuisance, more recent research has found that the RSC can contribute to the firm’s financial performance. The purpose of this paper is to identify how the RSC can contribute to the firm’s financial performance and examine the exogenous contingency factors decisive for the contribution’s size. Because the exogenous factors are outside the control of the firm’s operations and supply chain management, the factors influence the RSC’s financial contribution irrespective of managerial policies and design decisions.Design/methodology/approachThe paper applies a systematic literature review using the sequence of planning the review, searching and screening literature, extracting information from the selected literature, and synthesizing and analyzing findings. In total, 112 papers were included.FindingsThe study has identified 15 distinct opportunities for RSC-contribution to the firm’s financial performance. The study has identified 56 contingency factors. These are related to market segmentation, customer behavior, product design, and the firm’s distributor network. The study includes an interrelationship network between factors and the RSC’s contribution.Practical implicationsFor managers, the paper shows how the RSC can increase the firm’s financial performance and which contingency factors determine whether operating a RSC will be financially viable if implemented.Originality/valueWhile extant literature includes several reviews about RSC-related managerial policies and design decisions, this paper contains the very first collection of RSC-contribution opportunities available to manufacturers as well as the first review of exogenous contingency factors.

Journal

International Journal of Physical Distribution & Logistics ManagementEmerald Publishing

Published: Mar 22, 2018

Keywords: Closed-loop supply chain; Systematic literature Review; Reverse supply chain; Reverse logistics; Circular economy; Product recovery

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