Abstract
Purpose: Suppliers, manufacturers, wholesalers, and retailers alike are still considering reverse
logistics (RL) to be the “necessary evil” in their day-to-day operations rather than an opportunity for
future performance. At the same time, a well-structured RL program can create a substantial valueadded
and positively affect the bottom-line. Based on in-depth investigation of best in class RL
programs implemented in practice, the current research offers a grounded flow charting approach for
assessing the state of program development and, potentially, identifying areas for improvement
across different companies in various industries.
Methodology: The current study utilizes rich qualitative research methodology based on the
combination between a thorough review of existing literature and multiple field studies. The findings
from existing research, semi-structured interviews and observation at companies’ sites, and RL
related documentation at those companies provide the backbone for the development of the
assessment tool.
Findings: Although substantial variations exist in the way companies are setting up their RL
programs, some common processes prevail. Formalizing these processes and related activities
becomes the differentiating factor in RL program development and implementation. In addition,
providing structure to the RL effort helps companies to strategically control the related value-added.
Contribution: The current research introduces process formalization as a necessary condition for the
development and implementation of RL programs. The grounded flow charting approach, based on a
qualitative inquiry in real business situations, aims to bridge the gap between theoretical
developments and practical guidance for best in class RL operations.
Key Words: Reverse logistics; Green logistics; Process formalization; Process assessment
Classification: Case studies
