Reverse Logistics and Manufacturing Performance: A Conceptual Review

Abstract

Reverse Logistics (RL) is a process of collecting, inspecting, and dispositioning returned products or materials (recycling) in the manufacturing sector. The main aim of this paper is to review extant literature in the field of sustainable manufacturing practices (SMPs), particularly, reverse logistics and its relation to manufacturing performance, from the dimensions of environmental, operational and financial performance. It was identified that, manufacturing sector is the focal point for the implementation of reverse logistics concept. Thus, this paper focuses on conceptual aspect of reverse logistics ranging from dimensions, types and benefits. The review was underpinned by Ecological Modernization Theory (EMT). Furthermore, the paper reviewed previous empirical studies concerning the effects of reverse logistics on manufacturing performance, and most of the previous findings were found positive and significant. Therefore, this paper concluded the following propositions; Reverse logistics has positive and significant effect on the manufacturing performance, specifically on environmental, operational and financial performance. Hence, it is recommended that, the adoption of reverse logistics practices by manufacturing industries shall be encouraged. Lastly, future researchers should carryout empirical study on the topic under review to test the propositions of this study empirically.