A Conceptual Framework of Reverse Logistics Impact on Firm Performance

This study aims to examine the reverse logistics factors that impact upon firm performance. We review reverse logistics factors under three research streams: (a) resource-based view of the firm, including: Firm strategy, Operations management, and Customer loyalty (b) relational theory, including: Supply chain efficiency, Supply chain collaboration, and institutional theory, including: Government support and Cultural alignment. We measured firm performance with 5 measures: profitability, cost, innovativeness, perceived competitive advantage, and perceived customer satisfaction. We discuss implications for research, policy and practice

On the Robustness of the Consumer Homogeneity Assumption with Respect to the Discount Factor for Remanufactured Products

The strategic closed-loop supply chains (CLSCs) literature makes the assumption that a consumer’s willingness-to-pay (WTP) for a remanufactured product is a fraction of his/her WTP for the corresponding new product, and this fraction, called discount factor, is assumed to be constant among consumers. Recent empirical research challenges this assumption, by showing that there is considerable variability in discount factors among consumers. This paper considers a complex model in the CLSC literature: strategic remanufacturing under quality choice, and compares its solution under constant discount factors with the solution that assumes a probability distribution for the discount factors (which is analytically intractable and must be obtained numerically). We consider quality choice and remanufacturing for both monopoly and competitive cases. Overall, we find remarkable consistency between the results of the constant and variable discount factor models. Thus, we make a convincing argument that the constant discount factor assumption is robust and can be used due to its tractability

The Effect of Product Quality on the Pricing of New and Remanufactured Short Life-cycle Product

Remanufacturing is one of the recovery process that has become significant among many attempts to mitigate the landfill exhaustion, especially from mountain of wastes that come from short life-cycle products disposal. However, remanufactured product are often perceived to have lower quality compared to the new one. There are misconception about remanufactured product and lack of knowledge about its characteristics. On the other hand, several studies show that price and product quality have positive relationship. This paper investigates the effect of product�s perceived quality on the pricing decision, to maximize the profit of the retailer and the manufacturer. We develop pricing decision model for new and remanufactured short life-cycle product in a closed-loop supply chain consists of a manufacturer and a retailer, where the manufacturer is a Stackleberg leader. We find that lower products perceived quality would decrease the retail and wholesale prices of new and remanufactured products, but does not affect the new products sales volume significantly. Also, the speed of change of demand influences the optimum total profi

Transition to the circular economy: the story of four case companies

Shifting from a linear sales model to a circular service-based business model is far from straightforward. Many challenges accrue in the transition process, including finding the right market for the recirculated product/service, setting up the reverse supply chain, selecting the right partners, and making sure the new business model is sustainable in the short, medium and long term. This paper discusses the challenges of four companies trying to close the loop while preserving current profit levels. It describes their initial ideas on how the circular business model should be designed, the process they went through, challenges faced, and the eventual outcome. Based on the learnings of the four case companies, we summarise recommendations about preparatory steps required before making the transition towards a circular business model

Customers' switching behaviour towards remanufactured auto-products, with particular reference to the automotive industry in Thailand

The automotive industry is a major manufacturing sector in the economy of Thailand. However, industrialisation in Thailand, largely based on the traditional ‘take-make-dispose’ linear economy model, has not only placed increased pressure on the resource base of the economy, but it has also resulted in increased dependency of the industrial sector on large and foreign enterprises and in environmental pollution due to end-of-life vehicles. Dependence of industry and the economy at large on the linear economy model has been at the heart of structural unsustainability underlying the Thai economy. Environmental pollution is also a cause for concern. Hence the case for transition to a circular economy. Transition of the auto-sector in Thailand to the CE model is not without barriers that arise in the market. These become apparent when considering the range of factors associated with prevailing consumption and production behaviours that influence the transition process. In this study, the factors that influence the behaviours of customers and producers of automotive products are investigated. This study on the switching behaviour of customers is based on the ‘Push-Pull-Mooring’ (PPM) theory of migration; and for investigation of the survey data, the structural equation model (SEM) is adopted. The findings of the demand-side study of the automotive remanufacturing market show that the decision of customers to switch to remanufactured products is significantly related to the special benefits and environmental benefits deriving from the use of these auto products, consumers’ attitudes towards such products, and the risk of obsolescence that would be attached to remanufactured auto-products. Particularly, the suspicious attitude of customers towards the so-called ‘like-new’ remanufactured products were found to have a significant direct and indirect influence on their switching intentions. Meanwhile, the findings of the supply-side study indicate that the factors influencing auto-manufacturers to induce remanufacturing auto-businesses in Thailand are product maturity, financial costs, lack of skilled labour and technical aspects. A sustainable business model (SBM) for remanufacturing and ‘circular’ practices in the Thai automotive industry is developed as a policy and decision framework based on the empirical findings of the study. The SBM is developed as a practical business model for remanufacturers to launch ‘circular’ businesses in the auto sector in Thailand.The automotive industry is a major manufacturing sector in the economy of Thailand. However, industrialisation in Thailand, largely based on the traditional ‘take-make-dispose’ linear economy model, has not only placed increased pressure on the resource base of the economy, but it has also resulted in increased dependency of the industrial sector on large and foreign enterprises and in environmental pollution due to end-of-life vehicles. Dependence of industry and the economy at large on the linear economy model has been at the heart of structural unsustainability underlying the Thai economy. Environmental pollution is also a cause for concern. Hence the case for transition to a circular economy. Transition of the auto-sector in Thailand to the CE model is not without barriers that arise in the market. These become apparent when considering the range of factors associated with prevailing consumption and production behaviours that influence the transition process. In this study, the factors that influence the behaviours of customers and producers of automotive products are investigated. This study on the switching behaviour of customers is based on the ‘Push-Pull-Mooring’ (PPM) theory of migration; and for investigation of the survey data, the structural equation model (SEM) is adopted. The findings of the demand-side study of the automotive remanufacturing market show that the decision of customers to switch to remanufactured products is significantly related to the special benefits and environmental benefits deriving from the use of these auto products, consumers’ attitudes towards such products, and the risk of obsolescence that would be attached to remanufactured auto-products. Particularly, the suspicious attitude of customers towards the so-called ‘like-new’ remanufactured products were found to have a significant direct and indirect influence on their switching intentions. Meanwhile, the findings of the supply-side study indicate that the factors influencing auto-manufacturers to induce remanufacturing auto-businesses in Thailand are product maturity, financial costs, lack of skilled labour and technical aspects. A sustainable business model (SBM) for remanufacturing and ‘circular’ practices in the Thai automotive industry is developed as a policy and decision framework based on the empirical findings of the study. The SBM is developed as a practical business model for remanufacturers to launch ‘circular’ businesses in the auto sector in Thailand