Managing value in reverse logistics systems

This research concerns the reverse logistics systems in ferrous scrap of 12 North American manufacturing plants. It examines the role of purchasing and other functions in the reverse logistics system, and assesses the contribution made by the various departments. Purchasing played a significant role in managing reverse logistics activities at the plants in the study. Volume was found to significantly influence strategies and processes used by plants in their reverse logistics systems. A total of six volume-based approaches for managing ferrous scrap reverse networks are identified. The implications of each are discussed using case studies to highlight differences among the strategies.