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1、 Procedia - Social and Behavioral Sciences 109 ( 2014 ) 438 – 442 1877-0428 © 2014 The Authors. Published by Elsevier Ltd. Selection and peer review under responsibility of Organizing Committee of BEM 2013. d
2、oi: 10.1016/j.sbspro.2013.12.487 ScienceDirect2nd World Conference On Business, Economics And Management-?WCBEM 2013 The Role of Reverse Logistics in the Concept of Logistics Centers Ramazan Kaynak a*, ?pek Koço?lu
3、 b , Ali Ekber Akgün c abc Gebze Institute of Technology Faculty of Business Administration, Cayirova Kampusu, Kocaeli, 41400, Turkey Abstract Purpose- The purpose of this research is to identify the barriers faced
4、in the adoption of reverse logistics (RL) and the respective overcoming schemas provided by the logistics centers (LCs). However the lack of awareness on the benefits of the RL both from economic and environment angles
5、 is a major factor creating the resistance to complement the logistics activities with RL. Methodology- This study follows a literature research approach in investigating the intersecting and mutually constitutive asp
6、ects of LCs and RL and offers a theoretical systematic infrastructure for the firms to be encouraged in engaging with RL through the establishment of LCs. Findings- The consolidation of RL functions under the organized
7、 structure of LC would provide a wide range of opportunities and benefits for the organizations. The five major aspects endowed by the construction of a logistics village and the inclusion of RL activities in this cent
8、ral organizing, operational and administrative hub are; coordination and cooperation, centralization, consolidation, 3rd party RL collaboration and integration. Conclusion- Along with the opportunities, the barriers i
9、n front of the establishment of a RL system and the contribution of LCs in overcoming these challenges are discussed. 1. Introduction Supply chains are undergoing radical transformations due to the mega-competition tak
10、ing place on a global scale (Ravi and Shankar, 2005). Firms are finding that they must deal with a high level of uncertainty, which is not only technical in nature. It has been observed by companies that there is an inc
11、rease in the flow of returns of the product due to product recalls, warranty returns, service returns, end-of-use returns, end-of-life returns, and so on (Ravi and Shankar, 2005). Overall, the value of returns is estim
12、ated to be around $43 billion per year, representing an average of 15%-20% of all goods sold (Genchev, 2009). With continuing pressures to reduce operating costs while often incurring additional costs brought about by
13、environmental restrictions, firms must be concerned with the costs of returning materials associated with the products that they deliver (Alshamrani et al., 2007). The concept of RL has received growing attention in th
14、e last decades, due to competition and marketing motives, direct economic motives and concerns with the environment. With the legislative measures tightening up, there are not many options left with the companies, but t
15、o go to RL practices. New organizational paradigms have been created as ecological and environmental issues play a more important role in cooperative strategies (Gonzalez-Torre et al., 2004). A critical analysis of the
16、 challenges hindering RL activities, the opportunities for increased * Corresponding Author: Ramazan Kaynak. Tel.: +90-262-605-1427 E-mail address: kaynak@gyte.edu.tr Keywords: Logistics centers, reverse logistics, coord
17、ination, cooperation; Available online at www.sciencedirect.com© 2014 The Authors. Published by Elsevier Ltd. Selection and peer review under responsibility of Organizing Committee of BEM 2013.Open access under CC B
18、Y-NC-ND license.Open access under CC BY-NC-ND license.440 Ramazan Kaynak et al. / Procedia - Social and Behavioral Sciences 109 ( 2014 ) 438 – 442 developed the definition of LC as: ‘the hub of a specific area w
19、here all the activities relating to transport, logistics and goods distribution – both for national and international transit – are carried out, on a commercial basis, by various operators (Iannone et al., 2007). The
20、LC represents an innovation posing challenges and opportunities for many operators involved in freight transport, logistics, manufacturing and trade, while particularly offering to the local productive systems the best
21、 solutions in terms of transportation, warehousing and logistics activities (Iannone et al., 2007). The key functions in LCs identified to facilitate the RL chain are; (1) Coordination and Co-operation, (2) Centralizati
22、on, (3) Consolidation, (4) 3rd Party Collaboration and (5) Integration. 3. Logistics Center Opportunities in Reverse Logistics Stock et al. (2006, p. 16) best describes the strategic change taking place; “RL should not
23、be viewed as a costly side-show to normal operations. Rather it should be seen as an opportunity to build competitive advantage” (Genchev, 2009). The consolidation of RL functions under the organized structure of LC
24、would provide a wide range of opportunities and benefits for the organizations. Coordination and Cooperation: It is an underlying assumption in distribution, logistics and supply chain management that a higher level o
25、f coordination between the actors is superior to a lower, and will in turn lead to increased performance. The empirical results indicate that well functioning coordination and cooperation mechanisms across flows decrea
26、se costs and increase the level of service. Centralization: The presence of LCs in the RL network creates a framework which allows firms to operate within a wide variety of geographical, economic and political context
27、and turn into an effective network for multimodal transport services operating as the main leg of an international flow of goods. Consolidation: LCs are one of the urban freight infrastructures designed to promote cons
28、olidated delivery, in harmony with the facilitation of logistics activities (Wisetjindawat, 2010). 3rd Party Reverse Logistics Collaboration: The 3PLs providers have expertise and a broader view of how RL works becaus
29、e they work with multiple firms and industries. They can leverage their knowledge and software to benefit everyone. Typical services outsourced to 3PLs providers are transportation, warehousing, inventory, value- added
30、service, information services and reengineering of the supply chain (Du and Evans, 2008). Integration: Dowlatshahi (2000) argues that “from design through manufacture to consumer, firms should explore and integrate RL a
31、s a viable business option in the product life cycle.” The integration of transport and logistics activities in a single facility is more economic and efficient than several smaller intermodal terminals. 4. Overcoming
32、Reverse Logistics Challenges through Logistics Centers 4.1. Lack of information and technological systems Given the complexity of RL supply chains and the uncertainty return flows, effective information technology (IT)
33、 is necessary to support the management of return flows. Efficient information systems are supportive for individually tracking and tracing the returns of the product, linking with the previous sales (Biehl et al., 2007
34、). IT lays in the very base of the LCs, constituting the main capability for effective information flow, transparency among the partner organizations and through its integrative ability it could be incorporated into th
35、e RL framework (Daugherty et al., 2002). 4.2. Problems with product quality Another important barrier affecting RL is the quality of the end-of-use/end-of-life returned products. LCs serving as the hubs located in the
36、 intersection points of intermodal transportation as well as urban freight centers would establish inspection units where the control, refurbishing and in case repair of the returned products may be performed (Cerrano
37、et al., 2008). These inspection units or a part of them may also serve as outlets for the reselling of non-repairable items preventing extra transportation to any other outlets, protecting the environment and serving f
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