Academic journal article International Journal of Business and Information

The Reverse Logistics Management Model: Thailand Context

Academic journal article International Journal of Business and Information

The Reverse Logistics Management Model: Thailand Context

Article excerpt


Reverse logistics (RL) is new productivity, management, and green business concept. Reverse logistics management (RLM) gives precedence to the environmental perspective, particularly with regard to social responsibility and sustainability. It is a new way for business to achieve performance efficiency and effectiveness using the sustainability concept. It consists of three dimensions; namely, return policy and procedure (RPP), remanufacturing or refurbishment (ROR), and waste disposal (WAD). All three dimensions give precedence to recapturing value from products, especially electronics components or assembleto-order items (Tepprasit, 2012).

In Thailand, the electronics industry is economically important because it has a greater product value than all other industries in terms of exports to foreign countries. More than 20 years ago, Thailand began exporting electronics products and parts to the United States (USA), Europe (EU), and Japan. A few years ago, however, developed countries - particularly those in Europe - began returning all electronics products to Thailand. This action has had a serious impact on the Thai electronics industry and has caused Thai entrepreneurs to lose market share and order in the European market (Tepprasit & Yuvanont, 2015). What happened? Why are Thai electronic products rejected in Europe? This question is a subject of discussion in all Thai industries. At present, it is believed that the major reason for rejection is related to the sustainability or social responsibility concept.

In 2010, the European Union (EU) launched Europe 2020, a ten-year jobs and growth strategy to create smart, sustainable, inclusive, and environmentally safe growth in its 28 member states (United Nations, 2012). Most European countries use this concept as a non-tariff barrier to protect domestic businesses in market competition. The strategy calls for every business and manufacturing entity to exhibit social responsibility. All operation processes from upstream to downstream must be environmentally friendly. In 2015, the EU adopted a new set of smarter, greener, more inclusive economic and employment policies to replace the 2010 guidelines. By 2020, these guidelines will become law. The Thai electronics industry cannot survive if it does not take these guidelines into consideration and make the necessary changes.

The current study identifies factors that can enhance performance through reverse logistics management (RLM), which takes into account sustainabililty and the social responsibility concept (Tepprasit et al., 2015)

According to related papers by Ke, Xie & Zhao (2014), Abdullah & Yaakub (2014), Nikolaidis (2013), Corbacioglu & van der Laan (2013), Pirlet (2013), and Cojocariu (2013), the RLM focus on efficiency and the competitive advantage of cost and quality leadership enhances the supply chain competitive advantage. This is achieved through the sustainability and social responsibility concept, which changes a traditional business to a green business.


This section reviews the literature on forward logistics management, reverse logistics management, information technology, corporate leadership, and logistics performance.

2.1 Forward Logistics Management (FLM)

The term forward logistics management is defined by the Council of Logistics Management (CLM) as the operation plan, processes, and controls necessary for the efficient and effective manufacture, movement, and distribution of materials and products. The CLM, founded in 1963, is a global trade organization based in the United States. Effective January 1, 2005, it changed its name to the Council of Supply Chain Management Professionals (CSCMP). The CLM definition conforms with that of Martin Christopher (1992, 2011), a logistics specialist and academician. Christopher (2011) defines forward logistics management as the process of strategically managing the procurement, purchase, movement, and storage of finished materials, products, inventory, and the related information flow through the departments of the organization and its marketing channels in such a way as to reduce cost and increase efficiency. …

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