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Reverse Logistics Risk Management; Identification, Clustering, and Risk Mitigation Strategies

Panjeh Fouladgaran, H and Lim, SF (2020) Reverse Logistics Risk Management; Identification, Clustering, and Risk Mitigation Strategies. Management Decision, 58 (7). pp. 1449-1474. ISSN 1751-1348

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Purpose- Reverse Logistics (RL), an inseparable aspect of supply chain management, returns used products to recovery processes with the aim of reducing waste generation. Enterprises, however, seem reluctant to apply RL due to various types of risks which are perceived as posing an economic threat to businesses. This paper draws on a synthesis of supply chain and risk management literature to identify and cluster RL risk factors and to recommend risk mitigation strategies for reducing the negative impact of risks on RL implementation. Design/methodology/approach- The authors identify and cluster risk factors in RL by using risk management theory. Experts in RL and supply chain risk management validated the risk factors via a questionnaire. An unsupervised data mining method, Self-Organising Map (SOM), is utilised to cluster reverse logistics risk factors into homogeneous categories. Findings- 41 risk factors in the context of RL were identified and clustered into three different groups: strategic, tactical, and operational. Risk mitigation strategies are recommended to mitigate the RL risk factors by drawing on supply chain risk management approaches. Originality/value- This paper studies risks in RL and recommends risk management strategies to control and mitigate risk factors to implement RL successfully.

Item Type: Article
Additional Information: The AAM is deposited under the above licence and any reuse is allowed in accordance with the terms outlined by the licence. To reuse the AAM for commercial purposes, permission should be sought by contacting permissions@emeraldinsight.com.
Uncontrolled Keywords: 2202 History and Philosophy of Specific Fields, 1503 Business and Management, 1505 Marketing
Subjects: H Social Sciences > HF Commerce > HF5001 Business
H Social Sciences > HD Industries. Land use. Labor > HD61 Risk Management
Divisions: Business & Management (from Sep 19)
Publisher: Emerald
Date Deposited: 31 Mar 2020 08:24
Last Modified: 04 Sep 2021 07:34
Editors: Randolph-Seng, B
URI: https://researchonline.ljmu.ac.uk/id/eprint/12615
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