A STUDY ON CRITICAL FACTORS OF DIGITALIZATION IN REVERSE LOGISTICS

Abstract

Reverse logistics or closed loop supply chains play a critical role in todays’ business environment in order to achieve sustainable practices that include environmentally, socially and economic considerations. Reverse logistics covers the collection of end-of-life phased products from end users, and continue with recovery processes i.e. reuse, remanufacturing, recycling, refurbishment, and disposal. These activities have significant impacts on environmental and social issues as well as economic conditions of the company. Therefore, closed loop structures become essential for organizations, and reverse logistics becomes an indisputable element of the supply chains. Rapid digitalization in industry, so called Industry 4.0 or digital era, can be seen as a great opportunity to support and improve reverse logistics operations to contribute sustainability. Although, the relationship between sustainable practices and digital operations received the attention of both practitioners and academicians, the current literature lacks in providing factors that directly covers digitalization implementations in reverse logistics activities. From this point of view, this study, firstly, aims to propose critical factors for digitalization in reverse logistics, and secondly evaluate them to make a prioritization for practical implementations. To achieve these aims, initially a literature review will be conducted to propose critical factors that are supported by the literature. Secondly, Fuzzy-Entropy Weighting Method is going to be used to prioritize these factors and to reveal the most important concepts. At the end of the study, it is expected to contribute the literature by providing new concepts and suggesting future research ideas based on the results.