E-Business and Reverse Logistics
this final paper should be about E-business and Reverse Logistics or about Ethics and Information
Security in Reverse Logistics and the paper must be between 8 to 10 pages for the content, not counting
the title page or the reference page.
Introduction
Reverse logistics is one of the emerging fields in the supply chain that is
enhancing customer satisfaction and improving the overall performance of companies. Reverse
logistics operations are associated with the extension of the useful life cycle of commercial
returns, packaging materials, excess inventory, and used products. Reverse logistics is gaining
increasing attention in the global markets due to its promising financial potentials, which are
enhancing sustainability in growth alternatives and positive environmental impact. However, the
computer technology and the network are changing rapidly, especially the electronic-business.
Many logistics companies handle returns poorly, and when product returns are related to Internet
purchasing, the process becomes more complex (Batarfi, Jaber & Aljazzar, 2017). This research
paper presents the benefits associated with incorporating e-business with reverse logistics and
examines the application of e-business processes in reverse logistic companies. It also examines
electronic business concerning controlling the degree and the added value that e-business brings
to customers of the company.
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Literature Review
Reverse logistics encompasses product returns, product recalls, and service
contract returns. Electronic business is the process of carrying out business activities on the
Internet using electronic platforms (Batarfi, Jaber & Aljazzar, 2017). The e-business process in
reverse logistics includes servicing customers, processing payments, collaborating with
customers, sharing information with customers, monitoring product returns, tracking and tracing
lost products and running and recruiting automated staff services. Therefore, electronic business
allows logistic companies to contact the processes of business and transactions through online
services that enhances performance and efficiency of reverse logistics. Thus, reverse logistics
improve its services through the use of electronic business. Besides, e-business creates
competitive advantages for reverse logistic companies by enhancing the efficiency and
effectiveness of operations. For instance, the consumer-to-business model allows consumers to
develop their demand and value for products through procedures or activities such as online
reverse portals and actions. In additions, studies show that e-business enables reverse logistic
companies to faster their transactions and reach a broad customer base. E-business allows reverse
logistics companies to automate its services in order to improve efficiency, communication,
effectiveness, and the overall performance of the company (Lai & Cheng, 2016).
E-business has a broader range of business processes in comparison to electronic
commerce. This is because e-business includes diverse aspects such as customer relationship
management, an electronic order process and supply chain management. Therefore, the above
aspects are designed to allow reverse logistic companies to operate more effectively and
efficiently. E-business is essential to reverse logistics companies because it can deal with in-
house services through the company network or possibly through outsourced services from
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providers who have specialized in electronic business. E-business helps to streamline traditional
business operations in a reverse logistics chain. However, many logistics companies have chosen
to work with third-party logistics (3PL) service providers. This is because many companies
conclude that reverse logistics or supply chain is not part of their core competence. Despite the
benefits associated with vibrant reverse logistics, the decision to outsource for 3PL is particularly
logical when dealing with specialized logistics. Therefore, incorporating e-business in reverse
logistics helps companies to streamline their service, establish faster customer communication
channels, improves for product returns and contact business operations efficiently, faster and
more effectively. This provides reverse logistic companies with immense business opportunities
that improve profitability and general performance (Batarfi, Jaber & Aljazzar, 2017).
Reverse logistics deal with product returns. E-business enables reverse logistics to
handle product returns from a customer to return centers as well as monitoring and assessing the
condition of the products. The returned products are automatically routed to their final
destination based on the condition of merchandise and the choice of disposition for distributors
or manufacturers. Besides, the deposition options related to product recovery include upgrade,
re-packaging, refurbishing, repair, de-manufacture, re-manufacture, and recycling. Besides,
deposition logic also includes routing logic or channel (Cannella, Bruccoleri & Framinan, 2016).
This means that the returned components or products can be returned to the customer or
channeled to warehouses or directly sold in the secondary market. In general, reverse logistics
constitutes all operations associated with reusing of used products, excess inventory, commercial
returns and materials such as disassembly and collection as well as processing of used materials
and products. Reverse logistics is gaining popularity in the global market, and the adoption of
electronic business is enhancing the services and operations of reverse logistics. Reverse
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logistics ensure positive environmental impacts by establishing strategies that enhance product
sustainability. This includes the development of policies for reuse and collection of product at
the end of its life cycle. Reverse logistics policies are established to shift costs to manufacturers,
increase use of recycled materials and reduce the volume of generated waste. Reverse logistics
ensures competitive advancement by promoting efficiency in handling product returns. This
reduces costs and improves customer service and profits. Besides, efficient reverse logistics
enables companies to regain value from product reusing or recycling materials (Cannella,
Bruccoleri & Framinan, 2016).
E-business proactively minimizes costs. This is an essential aspect of reducing or
limiting returns by increasing the efficiency of forwarding logistics. E-business enhances product
tracing and tracking that ensure efficiency in the supply chain. Besides, another strategy to
reduce returned products is to select a suitable product mix for a targeted market (Lai & Cheng,
2016). Moreover, e-business enables reverse logistics companies to design web-based tools that
cross-examine each return and customer specifications in order to ensure improved customer
satisfaction. Reverse logistics companies can set gatekeepers for returns on the web in order to
establish when the customers plan to return some products. This allows companies to minimize
customer returns and ensure that products meet customer demands. Incorporating e-business in
reverse logistics minimizes the uncertainty of returns through proper planning. Web-interface for
reverse logistics helps companies to collect data to support preliminary management for returns
as well as the place and the time of return. Reverse companies can design web interfaces to meet
customer demands through financial incentives as well as following the most favorable
alternative for returns (Cao, Guo & Liang, 2016).
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E-business promotes returns and operators of third-party logistics. Reverse
logistics companies should develop efficient reverse logistics in order to capitalize on returns’
management opportunities. Besides, 3PL provides end-to-end processes for managing returns by
offering web-enabled applications, which provide access to real-time information and data from
consumers in reverse logistic chains (Cao, Guo & Liang, 2016). Furthermore, e-business allows
reverse logistic companies to consolidate return channels. Reverse logistic companies exploit
web using original equipment management (OEMs) to merge their return channels into one
central unit as well as enhance online exchange services. E-business sites operate as electronic
outlets and help to redirect returns back to the market promptly. Therefore, models of e-business
for reverse logistics establish returns aggregators that bring customers and suppliers as well as
automate the returns’ procurement. These services on aggregating returns using e-business
processes generate value through improved efficiency and minimizing costs of transactions.
Thus, e-business creates return aggregators, which enables reverse logistic companies to handle
returns from various OEMs without product ownership. Return aggregators allow reverse logistic
companies to establish different return flows such as production waste, end-of-use products, and
commercial returns. Companies can use e-business services to monitor and track product
movements, especially when using third-party logistics, operators who are in charge of transfers
for product returns to their target place. Web designs and efficient mechanism for searching are
essential techniques and tools for enhancing the visibility of return aggregators as well as
improving the participation of all stakeholders (Cannella, Bruccoleri & Framinan, 2016).
Integration of E-Business and Reverse Logistics
The integration of solution providers in reverse logistics facilitates and matches
supply and demand of returns. Integration of e-business and reverse logistics capitalizes on
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distinct expertise and use of web technology to enable them provides unique operations to their
customers. E-business services in reverse logistics help the company to automate services and
become owners of returns instead of executing brokering mechanisms (Lai & Cheng, 2016).
They allow companies to forge long-lasting relationships with customers and speedy handling of
essential business processes. Besides, integrated e-business model develops value through fees
for processing and locking in the customers for add-on products or services. An incorporated e-
business for a reverse logistics company ensures improved focus on the networks for returning
products. Thus, e-business allows companies to find strategic solutions for packing, shipping and
documenting returns through web access. Also, e-business creates a database that allows reverse
logistic companies to access real-time data and information accurately, efficiently, reliably and
effectively (Cao, Guo & Liang, 2016).
E-business allows reverse logistic companies or users to denote their returns and
choose suitable disposition procedure as well as enable return processors to track and document
approval for returned products flawlessly. Furthermore, e-business assists reverse logistics
companies with appropriate shipping and packaging documentation as well as ensuring the
complete range of reverse logistics regarding de-packaging, re-packaging of products and
destruction of controlled substances. E-business promotes the line of value-added services for
product returns by creating guidelines for reverse logistics’ customers to solve challenging
procedures as well as allows them to recommend particular products such as re-manufacturing
spare parts or equipment. Therefore, e-business allows reverse logistic companies to have a
complete network as well as provides the ability to offer consultation and guided assistance (Lai
& Cheng, 2016).
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The rapid development and adoption of web or Internet as a tool for marketing
have introduced the concept of electronic business to market transactions. E-business is the
process of obtaining products and services through the Internet in the form of real-time access to
information and data, business-to-business transactions, and ordering of goods or service. The
use of e-business requires companies to use complementary assets that promote the success of
reverse logistics such as the Internet, logistic services, and assets as well as Internet and satellite
technology. E-business offers consumers and retailers or distributors in reverse logistics chain a
world of opportunities and abilities to handle returns (Lai & Cheng, 2016). Moreover, the use of
e-business allows reverse logistic companies to interact with current and potential customers
easily by allowing close monitoring, logging, and tracking of their activities. Besides, the use of
e-business in reverse logistic business allows services and operations to be supported by
information systems such as business transaction systems among suppliers and buyers, customer
relationship management, and decision support systems. For instance, they enable access to
shipment status or delivery service database as well as access transaction services, which are
secure. E-business connects trading partners in reverse logistics using complete networks in the
entire supply chain in order to create and maintain or sustain a competitive advantage for the
company (Cao, Guo & Liang, 2016).
Reverse logistics are implementing same-day delivery services or product return
handling in order to lure customers and improve their satisfaction. Reverse logistics are using
electronic business to turn stores into distribution hubs as well as combining in-store and online
experiences (Lai & Cheng, 2016). This allows customers to place returns online as well as have
the returned product shipped back to the distributor or manufacturer efficiently. E-business has
revolutionized, and fundamentally reshaped relationships in reverse logistics were shifting the
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channel power and improving information and communication policies of companies (Cao, Guo
& Liang, 2016). Adopting e-business is not a competitive advantage, but it is necessary to avoid
reverse logistic company from lagging behind its competitors. Besides, the fragmentation of
returns has allowed systems to operate in a distributed manner in the e-marketplace. The e-
business systems allow an autonomous process to operate in interaction and it is easy to maintain
and sustain or accept new customers.
E-business allows specialty locators that serve the demand for authentic antiques,
equipment in historic restoration, exact replicas and handling of returned products. Reverse
logistics is an essential component of supply chain systems. Adopting e-business in reverse
logistics improves customers’ services, which is essential in ensuring customer satisfaction. The
handling of customer product returns is essential for the customer service program. Incorporating
e-business in reverse logistics ensures that you not only addressing customer needs but also the
needs of the company. This ensures efficient handling of reverse logistics in order to minimize
the impacts and cost of returns to the company because they affect the profits and efficiency
adversely. Reverse logistics companies must pay close attention to developing product returns’
policies and strategies that are customer friendly and enhance customer satisfaction. E-business
increases the level and quality of customer support in reverse logistics, which is an effective
strategy to win their loyalty (Lai & Cheng, 2016).
Proper e-business integration with the reverse logistics process improves
customer and corporate satisfaction. The main constituents of e-business are return policies,
receiving, return preparations, and ship an exchange, sorting and inspection. Also, it also ensures
product recovery, which is made up of re-packaging, restocking, scrap, and disposition. The
whole reverse logistics using an electronic business process should ensure it satisfies both
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customers and reverses Logistics Company by focusing on opportunities that increase
profitability. Reverse logistics companies should set up the policy for a trade-off between
decreasing the effects of returns and encouraging customers to keep on purchasing products.
Therefore, return policies for reverse logistics should ensure the appropriate use of technology in
order to improve company services (Guo, Liu & Jo, 2017).
E-business provides a profitable opportunity for reverse logistics companies to
effectively and efficiently improve its performance. Reverse logistics companies should use e-
business technologies to enhance the process of product returns. This is because the company
should establish efficient tools and techniques for monitoring the movement of returns. Proper
adoption of e-business will be faster and will improve services of handling product returns right
from customers to companies (Guo, Liu & Jo, 2017). Reverse logistics companies should use
appropriate technology to monitor the movement of products as well as ensure proper security,
tracking and tracing. Companies are also able to access real-time feedback and returned product
information in real-time. This improves the process of providing practical solutions to customer
problems and the reasons for returning products. Hence, reverse logistic companies can ensure
and maintain customer satisfaction. E-business equips and prepares company customers to
handle their returns and reverse logistics managers must ensure faster handling of return
products.
Furthermore, e-business improves the channel for communication, as customers
no longer have to call a customer service person for return approval. Therefore, if reverse logistic
companies use e-business services, they should adopt strategies and policies that are simple to
follow. It is also essential to provide a customer with complete online help and guidance, which
will also help the company to handle, returns effectively. Besides, reverse logistic companies
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should include a shipping address and identify the number of barcodes and RFID technologies
that will provide the best tags to enhance services and overall performance (Guo, Liu & Jo,
2017).
Challenges of E-Business and Reverse Logistics
E-business is very expensive for companies to adopt as it involves increased
logistical processes that managers must ensure proper handling. Besides, there is increasing
ethical issues such as confidentiality and privacy of customer information. Therefore, it is the
core mandate of the company to ensure that customer information is not disclosed to third parties
without his or her approval. There are also low barriers to entry, which will lead to increased
competition in the long run. Reverse logistics companies should adopt strategic e-business
policies such as return aggregators that will contribute and sustain competitive advantage.
Besides, there are insecurity issues to data storage; companies should establish a warehouse for
an information database that will provide an integrated view of operations and effective customer
services (Guo, Liu & Jo, 2017).
Conclusion
E-business for reverse logistics is a field of web-enabled processes that can
efficiently and effectively improve both customers and corporate satisfaction. Reverse logistics
companies should adopt e-business services in order to enhance their operations and improve
performance. This will provide managers with real-time information to make strategic decisions
concerning the handling of product returns. This is because operating in a competitive and
globalized environment requires efficient customer services and providing services that meet the
demands of customers. E-business enables reverse logistic companies to meet customer
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requirements by providing them with information that assists them to find satisfactory solutions
for their product returns. Thus, integrating e-business with reverse logistics maximizes profits
and minimizes costs of operation.
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References
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Cannella, S., Bruccoleri, M., & Framinan, J. M. (2016). Closed-loop supply chains: What reverse
logistics factors influence performance. International Journal of Production
Economics, 175, 35-49.
Cao, F., Guo, J., & Liang, C. (2016, November). Multi-stage Layout Optimization for Reverse
Logistics Network of Rural E-Commerce under B2C Mode: A Case Study of E-
Commerce Enterprises on 3C Products. In e-Business Engineering (ICEBE), 2016 IEEE
13th International Conference on (pp. 287-292). IEEE.
Guo, J., Liu, X., & Jo, J. (2017). Dynamic joint construction and optimal operation strategy of
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enterprises. Journal of Intelligent Manufacturing, 28(3), 819-831.
Lai, K. H., & Cheng, T. E. (2016). Just-in-time logistics. Routledge.
