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Reverse Logistics in The Automotive Industry Research Summary


Reverse Logistics Activities Framework


The paper has discussed the reverse logistics activities and the paper aims at investigating the steps are taken regarding it in the automobile industry. However, reverse logistics activities are valuable and feasible in the industry and the paper provides a framework for the activities. The companies in the modern world are doing efforts for the reuse of products and materials, there is the process of moving goods and the companies are focused on the supply chain for the final destination proper disposal.

Remanufacturing and refurbishing activities are taken and supported by the countries government so that the growing green concerns can be focused effectively. There are the steps for the advancement of green supply chain effectiveness and the management. Moreover, efficient practices are undertaken in order to deal with the logistics and to deal with events. In order to recycle and send the product towards the customer, reverse logistics is becoming effective and thus the goods move from the client to the distributor and various manufacturers (Dekker, Fleischmann, Inderfurth, & Wassenhove, 2013).

Companies, growing attention from the last decades are giving the major support to the environmental matters, while including the sustainable development there are the legal regulation for the protection, as economical reasons can be the major concern, there are focused on increasing the importance of RL issues because the companies in the industry are possibility of recovering from bad situations. The firms have already focused and increasing their interest in the reverse logistics activities because there are various interests, as they know there is growth in the industry. Therefore, there could be benefits in the market, companies are efficiently concerned in the market competition for the partial vision; the companies are growing environmental concerns so that there could be the efficient recovery of returned vehicles. Moreover, the biggest concerns are the legislative policies that are supportive regarding environmental protection or issues in the industry (Govindan, Soleimani, & Kannan, 2015).

Importance in Business and Industry:

Reverse logistics (RL) have the importance in the business and the industry, as there is the major focus on the reuse of products and materials. RL has the rapidly growing importance in the industry there is the focus on the effective activities, thus, for increasing the reverse logistics, there is need to implement operations that can be effective, as the companies are giving values to supply chain, products and the services. RL in practice contributing and providing the values in the partial vision, there are the factors of cost saving, environment protection, and other production processes.

Moreover, the concerns are related to green logistics, therefore, the logistics strategies includes the product return, recycling, refurbishing etc. it is also known as the repair and remanufacturing of the products, thus, the reverse logistics in automotive industry have interesting and vast role in the development of the enterprises or the companies. There are the efforts done by the industry, in order to improve enterprise and the logistics service. Companies are enhancing the operational efficiency so that there could be effective steps to reduce the production costs and tin this way, companies become able to find the gaps and deficiencies that could be there in the material they are providing in the market (Alumur, Nickel, Saldanha-da-Gama, & Verter, 2012).

The companies are focused so that efficient occurring sources in production could b focused on the management and the services. The values are given to reverse logistics, in order to prompt the enterprises and companies, in this way realize the importance to improve the product designs and the internal management of the company that has the operations at operating levels. Consequently, the companies in the industries are increasing resource utilization so that there could be an effective development of green logistics. Thus, companies are ensuring the quality and the focusing on the defective products through the Reverse logistics, because there is focus on the timely treatment and the good performance while managing the time arrangement.

Moreover, the companies are enjoying the benefits of the price, there is efficient competition in the market because companies are making the raw materials that could be recycled and provide the effectiveness to the manufacturer. In the reverse logistics, there is the focus to recycling the pig iron, plastics, rubber etc. The reverse logistics need to implement, in this way, because it has the importance in the industry and for the companies, there are enormous benefits to the enterprises that need to realized, moreover, the whole product life cycle, could be focused on providing the value to the green concept.

Categories of Reverse Logistics Flow:

  • Packaging: In the reverse logistics flows, it is considered as the major class because the major focus is on the reusable boxes and the refillable bottles; it can provide the benefits, economically because it is attractive to go green. It is the major reprocessing because good transportation is required.
  • Production of scrap and by-products: In the reverse logistics flows, the focus is given to the production scrap and by–products because the excess material can result in the cutting or blending of the products, in the production process and the advantages or usage could be taken again from products.
  • The commercial returns: In the commercial returns, there is the preceding business transaction, as the buyer returns products to the original sender in the market. Thus, the contract can also take place in the two parties, who are in the supply chain. There can be returns from retailers to the manufacturers or between the consumers to retailers.
  • The warranty returns: In the warranty returns, there are the rely on the market or marketing considerations because the customer values and customer services are considered, there are legislative rules and based on the warranty return there is need to repair or to do refunding or replacement of the products.
  • End–of–use returns: The end of use refers to denote flows of goods, which can have the wide range of examples and the main focused broader perspective, there are returns of goods or products in the end of the technical life, if some of the goods do not necessarily reach their lives.

Dimensions in Reverse Logistics:

There could be various dimensions in the reverse logistics, as the major influence is on the reusable packages, there could be the better focus on the disposed of computer equipment and the unsold merchandise. The companies are giving importance in the different dimensions, as there can be notable, spare parts from the benefits could be taken. From the logistics perspective and other legislative motives, various dimensions can be considered. Consequently, the efforts are there by companies in the industry are focusing on attaining the benefit, for economic and other marketing perspectives, there can be the inbound flows of the low raw material prices, and the companies focusing on reverse logistics are trying to make the image of ‘green’ profile in the market. The reverse logistics dimension are mainly providing product identity and seeking various goals of repairing the products, the recycling also denotes the material recovery and including various modes of transportation (Dobbs, Manyika, & Woetzel, 2016).

Therefore, customers, in this way can increasingly pay attention for the reuse and recycling activities in the company and for effective environmental reports. The company’s environmental image can provide the additional benefits in the market, as the companies can gain the competitive and the economic advantages while focuses on building the public environmental policy. There can be the asset protection for the important motives of the companies. Company paying attention to reverse logistics is giving importance to cleaning or minor maintenance etc.

Marketing Channel in Reverse Logistics:

For the efficient assignment of the reserves logistics, there are the needs of the different supply chain parties; however, there are four reverse channel types, which include the traditional intermediaries, the secondary materials dealers. Moreover, others are manufacturer–controlled recycling centers and the joint–ventures resource recovery centers for the recycling or the reprocess of the products.

In the marketing channel of reverse logistics, there is the focus on the market communications and the other channel functions so that companies could able to focus on the critical success factor that is important for the reverse channel functions in the market. Therefore, the marketing operation, the potential actors including the co–operation of the parties and the reverse channel typology are considered, the companies could focus on the temporary networks and the public policy for the development and the long–term success. The companies in the field do the analyses of the alternative channel structures so that there could be the collection, recycling focused on the reverse logistics, moreover, market approaches and the recycling can benefit the individual parties’ profits. For the occurrence of the problems, there could be the dominant solution by the manufacturer and the retailer; the efforts are done by the companies for the commercial returns (El-Sayed, Afia, & El-Kharbotly, 2010).


While concluding it could be said that, the paper focuses on the reverse logistics activities in the automotive industry, as it is known that the companies in the modern world are doing efforts for the reuse of products and materials and there are the remanufacturing and refurbishing activities. Moreover, RL in practice contributing and providing the values in the partial vision so that benefits of cost saving, environment protection can be achieved by companies; government is supporting the public policy for the development and the long–term economic success.

You may also read:

China Logistics Industry Analysis

  • Alumur, S. A., Nickel, S., Saldanha-da-Gama, F., & Verter, V. (2012). Multi-period reverse logistics network design. European Journal of Operational Research 2, 220 (1), 67–78.
  • Dekker, R., Fleischmann, M., Inderfurth, K., & Wassenhove, L. N. (2013). Reverse Logistics: Quantitative Models for Closed-Loop Supply Chains. Springer Science & Business Media.
  • Dobbs, R., Manyika, J., & Woetzel, J. (2016). No Ordinary Disruption: The Four Global Forces Breaking All the Trends. PublicAffairs.
  • El-Sayed, M., Afia, N., & El-Kharbotly, A. (2010). A stochastic model for forward–reverse logistics network design under risk. Computers & Industrial Engineering, 58 (1), 423–431.
  • Fleischmann, M. (2012). Quantitative Models for Reverse Logistics. Springer Science & Business Media.
  • Govindan, K., Soleimani, H., & Kannan, D. (2015). Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future. European Journal of Operational Research, 240 (3), 603–626.

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