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Original Research
Drivers and barriers of reverse logistics practices: A study of large grocery retailers in South Africa
Submitted: 13 June 2017 | Published: 31 August 2017
About the author(s)
Arno Meyer, Department of Business Management, University of Pretoria, South AfricaWesley Niemann, Department of Business Management, University of Pretoria, South Africa
Justin Mackenzie, Department of Business Management, University of Pretoria, South Africa
Jacques Lombaard, Department of Business Management, University of Pretoria, South Africa
Abstract
Background: Reverse logistics (RL) practices have previously been viewed as a cost drain, but have received greater attention from practitioners because of increasing competition and dwindling margins.
Purpose: The purpose of this generic qualitative study was to uncover the main internal and external drivers and barriers of RL within major South African grocery retailers.
Method: Eleven face-to-face, semi-structured interviews and one telephonic interview were conducted with participants from four large grocery retailers.
Findings: Optimising profitability and cost reduction goals are the identified internal drivers, whereas the main external driver was to reduce the organisations’ environmental impact. A lack of information systems – such as enterprise resource planning systems or warehouse management system software – and infrastructure were revealed as the main internal barriers for organisations’ RL practices, whereas supplier non-compliance and transportation inefficiencies were the main external barriers exposed.
Managerial implications: In order to optimise the efficiency of the reverse flow, managers are recommended to devote more capital to RL infrastructure, develop policies to manage supplier behaviour, focus on RL as a revenue generating stream as well as implement information systems to manage the entire reverse flow.
Conclusion: All participating grocery retailers follow similar RL processes. Growth in RL practices as well as infrastructure to perform those practices is a future priority for all the reviewed grocery retailers. RL is no longer only a key cost driver, but also provides organisations with many additional opportunities.
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