“Drivers and barriers of reverse logistics practices: a study of

large grocery retailers of Pakistan”

Research Project

Submitted By:

Bilal Aziz Khan (1625106)

Syed Wajahat Omer (1625130)
Ahsan Aziz Shaikh (1625103)

Supervised By:
Sir Humair Ali

Section
MBA-D

Shaheed Zulfiqar Ali Bhutto Institute of Science & Technology (SZABIST)

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 Acknowledgement
First and foremost, we would like to thank my Research Supervisor Sir Humair Ali Khushk for
his continuous support, guidelines and motivation for completing this research.
Besides my advisor, we would like to thank Miss Sarah Wali Qazi for her assistance in research.
Also, we are very thankful to all the employees of Imtiaz, Naheed, Jan Supermarket, Al-Wardah,
Green Mart, Hyper Star, Metro and Family for providing us the right insight and information that
was required to compile our research

We would also like to extend our gratitude towards the management and faculty staff of
SZABIST for providing us with all kinds of technical and supportive assistance which was
required for the execution of our research.

Last but not least, I am also thankful to Family, Friend and colleagues who had supported us
spiritually throughout writing this research.

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 Abstract
The objective of this research is to explore the current perception of reverse logistic in different
grocery stores. This study is based upon an inductive approach having an interpretivism
philosophy which supports us to develop and work upon different codes and themes which are
generated through content analysis. Data collected through secondary resources and through
interviews from supervisors of Naheed, Imtiaz, Family, Hyper, Al-Wardah Supermarket, Jan
Supermarket, Green Mart and asked a series of open ended questions and were interviewed until
the results became saturated and then further the respective collected data went through a content
analysis. Technique of sampling was purposive sampling. Data had been collected in one to one
meeting with respondent and direct in-depth interviews had been taken and recorded. The
Reliability of this research have been checked by triangulation method to analysis data and
research to the same result. The goal of this research is to known the driving force behind the
recovery options of reverse logistics, how the processes of recovery options are carried out in the
grocery stores and the benefit option of reverse logistics in the grocery store. All the stores are
involved in operation of recovery options of reverse logistics from the prospective of
Assembling return, distribution and customer’s returns. They are not directly involved in the
recovery options like remanufacturing, reengineering, or recycling but involved in the recovery
options of reverse logistics which leads toward saving the cost and beneficial to the environment
Keywords: Reverse logistics, Barriers, Drivers, Cognitive reason.

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 Chapter 1: INTRODUCTION
1.1Background
The word reverse logistics is first prepared by James R. Stock in 1992 by council of logistics
management. The idea additionally reclassified in reverse logistics programs by reverse
logistics association. From the year 2000, reverse logistics can be connected in the modern
practice under logistics management. Reverse logistics for the most part centre to recovery of
the item through 3R (reuse, remanufacturing and recycle) ideas. In India, the National
Environmental Policy, set up in 2006 perceives the casual division and energizes the gathering
and reusing of waste.
Food waste or food loss is the uneaten nourishment or not eaten by the purchasers. The
nourishment misfortune happens at every single phase of store network with various amounts. In
creating nations like India, 20% misfortune happens at gather arrange, 40% of misfortune
happens at post-collect stage and staying 40% of misfortune happens at retail and buyer organize
(Food and Agriculture Organization of the United Nations, 2011). The backward stream of food
items important to diminish the nourishment waste and smooth stream of logistics operations.
The impact of sustenance squander on condition expands the ozone harming substance, natural
debasement and increment contamination. The reverse logistics can be connected on the Food
Processing Industries to diminish food wastage. The noteworthy of Reverse Logistics in the Food
Industry is clear in the prerequisite to give quality and safe food to buyers without representing
any risk on human wellbeing, prosperity and the earth. (Vlachos, 2014).
According to the chamber of logistics administration, "Reverse logistics is the technique of
arranging, actualizing and controlling the productive, cost-efficient stream of crude materials, In-
process stock, completed merchandise and related Data from the purpose of utilization to the
point of starting point with the end goal of recovering quality or legitimate Transfer". Invert
Coordination’s Can Be Characterized As reverse procedure of logistics (Afifa, 2011). Reverse
logistics goes for the regressive stream of material which begins from shopper to the maker and
defectives showing up during the assembling Procedure with an objective of expanding quality
from things which requires appropriate transfer (Rogers, 1999). Reverse logistics can be of
characterized as the movement of items and material in the reverse direction for building or
recreating the value. It may consist of raw material, product and packaging. The exercise of

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reverse logistics has gradually increasing day by day and becoming distinctive range of attention
over some decades (Stock J. M., 2009). Reverse logistics is adapt by numerous business, which
includes steel mills, jets, PCs, vehicles, chemicals, appliance and curative items. Firms that have
adept reverse logistics include BMW, Delphi, DuPont, General Motors, Hewlett Packard,
Storage Tek, and TRW Automotive. The successful utilization of reverse logistics can benefit the
organization to participate in its industry when challenging its strong competition and low
revenues.
In spite of the considerable number of hindrances, it has been discovered that reverse logistics
ought to be essential and associations can appreciate many advantages in the event that they do
participate reverse logistics rehearses in a proficient and viable way. A few associations are
starting to understand that reverse logistics is vital, that it can be amazingly savvy and convey
incredible increased the value of the client's general involvement of the association or brand if
took care of and oversaw accurately (Weers, 2008). Reverse logistics can be a noteworthy
wellspring of undiscovered productivity (Sumner, 2008) and an all-around oversaw reverse
logistics program can recognize an association from its rivals and increment client steadfastness
(Dampier, 2006). Hence sound practices in item returns and switch logistics can be a "win-win"
circumstance profiting the two clients and the firm (Stock J. M., 2009)
In any case, regardless of the possibility that organizations understand the significance of reverse
logistics, they may even now battle with actualizing and overseeing the whole procedure
proficiently.
As indicated by (Adapt,2007) the difficulties that associations confront are very subject to the
sort of development level of reverse logistics. The creator recognizes five phases or levels of
development in Switch logistics. In phase 1, the purity organize, associations don't comprehend
reverse logistics and are not engaged with any reverse logistics exercises and procedures. In
phase 2, the comprehension arrange, associations end up noticeably mindful of reverse logistics
yet do not have the capacity to execute and effectively deal with their reverse logistics
procedures and exercises. In phase 3, the fitness arrange, associations are very much prepared to
deal with their invert logistics procedures and exercises proficiently and viably. In phase 4, the
improvement stage, associations begin to widen the extent of their reverse logistics abilities and
push toward getting to be specialists in the field of reverse logistics. In the last stage, the
brilliance arrange, associations are world-class pioneers and specialists in reverse logistics.

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In the previous 200 years, the outstanding progress of industrial and financial improvement has
enhanced the global trading of individuals, products and data making it very challenging for
self-return (Al, 2014) nature deposit are utilized for the contribution of consumer items that are
becoming costly while in the meantime buyers are becoming situationally aware, as such
condition reverse logistics play an important role while obtaining low cost than your competitor
in the grocery industry (Tejwani, 2012)
Grocery retailers are recognized for its inventive stock recovery solution for competition. These
Grocery industries are the first time that focus on product returns and create reverse logistics
process. Vendors probably utilize innovation like electronic data interchange (EDI),
computerized return tracking and radio frequency identification (RFID) technology to improve
reverse logistics process.
Reverse logistics also plays significant role to recreating packaging material in grocery
industries. Recreating packaging is used to wrap up the product during the distribution from
manufacture to grocery stores. Generally card boxes, plastics are utilize in secondary packaging
materials.
This re-use packaging of material plays an important impact on environment. Reverse logistics
help to save energy and reduce pollution. The procedure of re-use of packaging material like card
boxes, plastics is not harmful to atmosphere as compare to one time packaging material.
According to Frauenhofer Institute in 1993 re-use packaging are less trouble on environment
than one time use packaging material, which mean reverse logistic help to make environment
friendly.
The utilization for re-use of packaging material is to encourage because of concern for the
environment. In 1991 Dutch ministry and industries signed the Packaging Covenant forcing
industries to consider better approaches to manage with wrap material. According to this
packaging covenant in the year 2000 the wrap material in Netherland cut down by 10%.On the
other hand the German companies and traders created non-profit company known as Duales
System Downloaded by Carleton University. The purpose is to gather wrap material to re-use

As indicated by (Schulte, 2013) the world’s population has increased to seven billion in two eras,
with an expectation about 3 billion of individuals will entering world with working class by 2030
(Company, 2011) (Schulte, 2013). Two centuries before the resources are not infinite source of

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wealth, particularly with the global boost per capita resources (Dobbs, 2011) & (Schulte, 2013).
Leading reverse logistics will permit companies to regain as much as incentives from recourses,
limiting global assets shortage.
Pakistan’s population had increased by 196 million. As Pakistan’s population is increases it is
impacting on amount of consumer products hence organizing activities such as waste
management, reuse and product restoration will help the firms to recover the amount of the
products and accomplish sustainability in supplies and efficiency (Jain, 2012)
The majority of the earlier reverse logistics analysis focussed on drivers and boundaries in
advance countries but pays little attention on developing countries for example South Africa
(Subramanian, 2014) and (Bouzon, 2015). Research show South Africa setting incorporate a
structure for organizing practices to overcome cost-related issues in reverse logistics
(Badenhorst, 2013). A study is to organizing the usage of practices to defeat operational barriers
in reverse logistics (Badenhorst, 2013)

1.2 Problem statement

The fundamental problem of this study is to explore the barriers and drivers of reverse logistics
practices at large grocery retailer sector from the perceptive of managers in Pakistan. To explore
those factors which include cost related problem in reverse logistics, operational barriers in
reverse logistics and supply chain integration in the product return process. How do they
influence an organization and through what measures it can be minimized effectively. As of
today few or little studies have been conducted on the current issue. Moreover, it will help
researchers, managers, top managers and policy makers to realize the importance and concepts of
reverse logistics.

1.2.1 Purpose of research

The aim of this research is to explore the barrier and practices of reverse logistics within major
Pakistan grocery retailers.

1.3 Research question

1. What reverse logistics practices do Pakistan grocery retailers currently implementing?

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 2. What are the key internal and external drivers for reverse logistics practices in the
Pakistan
Retail grocery industry?
3. What are the cognitive reasons behind reverse logistics practices in the Pakistan retail
grocery industry?
4. What are the key internal and external barriers to reverse logistics practices in the
Pakistan retail grocery industry?

1.4 Research objectives:

 To explore the perception of the supervisors that what they think about reverse logistics
 To determine the importance of reverse logistics
 To explore the drivers and benefits of reverse logistics
 To identify cognitive reasons behind the reverse logistics
 To identify the problems and challenges in reverse logistics.

1.5 Justification:
Reverse logistics/concept and its implication at work place takes different forms in an
organization which influences organizations in different manners. Managers and top
management authorities of any organization are responsible for reducing the barriers of reverse
logistics, cost related issues and issues of integration in supply chain integration in product return
process. Studying in the view of the managers who belong to those organizations.
What reverse logistics practices do Pakistan grocery retailers currently implement, also how they
implement external and internal drivers of reverse logistics and what are the outcomes by
implementing those rules and policies. Hereby, this study nominates the managers, top
management authorities, stakeholders, policy makers, organizations as the beneficiaries of this
research. One of the biggest limitations is generalization of results because in qualitative studies
generalization is not possible.

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1.6 Limitations
The researchers and analysts can never fully depend on the feedbacks and responses because the
results cannot always be accurate. There is a possibility of reliability and biasness and in the
feedbacks collected from the managers because during the interviews some managers were too
consumed with their workload, organizational pressures and some were reluctant to discuss
about these organizations openly ending up being non-cooperative with the researchers.

1.7 Scope
This study is based upon qualitative method and revolve around the issues related to cost related
problem, barrier in reverse logistics and supply chain integration in the product return process its
influences on an grocery retailers in Pakistan and how managers and top management authorities
perceives it and can effectively play their role towards minimizing the rising dilemma. Due to a
restricted span of time this study is going to be a cross-sectional study.

1.8 Definition of key terms:

Drivers:
According to (Hsu, 2016) driving forces behind RL practices consists to those factors that inspire
the firms to adopt RL operation which help them in increasing earnings and profits by cost
reduction advantage.

Reverse logistic:
RL operations associated with recycling of used products overflow of inventory and items
includes stocking of material, dismantling, process the used material/items (Sharma, 2011).

Remanufacturing:
According to (Akdoğan, 2012) those products that can be re-processed, required retrieving and
obtained re-processing material for re-utilized for later operations.

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Barriers:
As per (Abdulrahman, 2014) barrier referred to as obstacles within the organisation that directly
influence the accomplishment of RL practices.

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 Chapter 2: LITERATURE REVIEW

2.1 Reverse Logistics:

Reverse logistics is the process of physical movements of merchandise shaped by repairing and
returning substandard products and in addition turnover holders came back to supply side from
demand side. This includes the things substances reverse logistic procedure, for example,
recovering beds and compartments used to transport, getting the client returns, gathering holders,
raw materials, scrap and extra parts handling surrenders in the item deal (Zhang, 2010). Reverse
logistics is the way toward moving products from their place of utilization, back to their place of
fabricate for reprocessing, refilling, repairs or waste transfer. It is an arranged procedure of
products development in invert, done in a compelling and cost-effective way, through a sorted
out system (Sople, 2007). According to (Dowlatshahi, 2000) classifies on Reverse Logistics as
indicated by five classes: worldwide ideas, quantitative models, dissemination, warehousing and
transportation, organization profiles and applications. In the assessment of the writer most of the
articles absence of basic reverse logistics structure, don't depict the essential structure of reverse
logistics, and don't characterize the essential ideas and terms.

2.2 Reverse logistics Processes:

The process of moving merchandise from the point of utilization to recovering value or
appropriate transfer; including exercises like remanufacturing and repairing, processing of
returned damaged items, occasional stock, reviews return executed as a result of safety or quality
reasons, reusing programs, unsafe material projects, outdate equipment disposition and resource
recovery (Arrieta, 2015).
There are four core procedures in reverse logistics the first step is to collection the material,
secondly there is the examination and arranging process, thirdly there is re-handling or
recapturing lastly there is redistribution. Collection refers to collect all reuse the product from
customer. The next step is the inspection of the collected products than moving towards
reprocessing which include repair, refurbishing, remanufacturing, retrieval, reusing. At the end
recover goods redistribute to the new customer.

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 Inspection/Sort Re-handling or
Collecting Redistribution
ing Recapturing

In the inspection stage products are being arranged according to plan. Product is arranged by
their quality as a last stage in the recovery items experience some sort of handling. This can
comprise of destroying as well as crushing, again and arranging, then testing and re-
manufacturing. In destroying the item is part up into parts or segments, which may experience a
different recuperation. In refining the item structure is demolished and its materials might be
reused after arranging.

2.3 Barriers in Implementing Reverse Logistics Practices:

Following are the internal and external barriers of reverse logistics practices.
Internal barrier:
According to (Abdulrahman, 2014) internal barrier relevant to operation of Reverse Logistics
practices with in work place.
Lack of Functional Integration: As per (Sharma, 2011) deficiency of operation integration and
coordination has greater effect on reverse logistics practices. While on the other hand inner
coordination builds on belief that different department must work in alliance as a single unit to
achieve targeted goals or results in order to succeed best reverse logistics practices (Bernon M.
U., 2013). Varying perspectives on the significance of reverse logistics are nonetheless shared;
bringing about poor functional integration and in addition to higher product rate of returns
(Abdulrahman, 2014).
Higher Management Attitude Towards Reverse Logistics: According to (Hazen, 2012) top
management may not be aware about the benefits of reverse logistics outcome which will be
worthy for organizational success. For successful execution of reverse logistics practices requires
top management should be involves in critical decisions and allocation of valid resources in
order to get desired outcome (Creutz, 2012). To increase organizational advantages from reverse
logistics practices, reverse logistics specialists who are actually dedicated and in charge of the

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creation and execution of reverse logistics methodologies has to be put in the organization (Ho,
2012).
Economic Barrier: According to (Abdulrahman, 2014) and (Sharma, 2011) crucial barrier to
Reverse Logistics practices are lack of primary money and investment for returns tracking
system, stocks & in house controlling of returns. Managing Reverse Logistics practices are
sometimes un-predictable attempt for higher management as they need financial facet of an
organization which may be dangerous in achieving long term goals (Ganjali, 2014). In order to
achieve targeted goals of reverse logistics operations, it needs huge quantity of investment &
supplies to execute and support information systems which has the ability to trace items return &
damages (Bernon M. R., 2011). A viable reverse logistics operation expects work force to be
prepared in any case, this preparation needs money related help that the organization may not
have or need to commit to reverse logistics, consequently making great trouble in dealing with
the reverse logistics practices (Sarkis, 2011).
Deficiency of adequate information system: Executing and keeping up with product recovery
management needs calculated planning & money and other facilities for workforce and operative
tasks so, if product are not sold out they appear as a cost or risk to company (Piplani,
2012).Inconsistency or absence of data innovation react as a crucial barrier to Reverse Logistics
practices between demanded parties as their accessibility to quality of data being jeopardize
when returns have to be handled manually (Madaan, 2012).

External barrier of Reverse Logistics:

Incorporation Of Supply Chain Partner: Supply chain partners are directly the inspirational
personnel for reverse logistics practices moreover, they provide close bonds between partners
(Shi, 2012).one of the crucial barrier of reverse logistics practices are where supply chain
partners are un-coordinating to company rules if, these barriers were disconnected high
possibility of an successful reverse logistics practices (Sharma, 2011). Significant amount of
time, cash and effort are spent on building up a complex product return system that depends on
supply chain coordinated efforts and joining to perform successfully; but bad coordination
among supply chain partners results in ineffective product return system (Bernon M. U., 2013).
Absence Of Correct Forecasting: According to (Cardoso, 2013) crucial barrier for Reverse
Logistics is absence of correct forecasting among supply chain partners because it triggers

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problems in planning for the consignment and ranges of product that need to pass through
reverse chain. Product returns create UN predictability in the organization which included
timing, distribution, defects, quantity and quality of returns are undisclosed (Shaharudin, 2014).
Efficient and cost- effective reverse logistics operations are possible when higher management
takes right decision and correct information which plays an productive role in managing and
development of reverse flow (Govindan K. S., 2015).
Government assistance and procedure: As per (Ganjali, 2014) lack of executable environment
laws imposed by government decreases the chances of motivation for organization to practice
reverse logistics activities. Deficiency of tax procedures and economical support from local
government is to sponsor reverse logistics has react as de motivation for organizations which are
going to spend in reverse logistics practices, as it generates high risk of tax complication for
products which were returned (Sharma, 2011). Consequently, government has the highest
superficial on company’s reverse logistics practices (Lai, 2012).

2.4 Cognitive Reason of Reverse Logistics:

There are various kinds of items returns which can influence each individual from the production
network, from buyers to producers. There are likewise various purposes behind returns,
depending on who starts them and also the idea of the materials included (Schatteman, 2003) and
(De Brito M. &., 2003). Have characterized product returns according to the types of and causes
for returns under the following three headings manufacturing, distribution and customer/user
returns.
Manufacturing: Assembling returns include every one of those conditions where products or
items must be recuperated in the creation stage. This happens for a variety of reasons. Raw
materials might be left finished, middle or last items may fail quality checks and must be
improved and items might be left finished item during formation (De Brito M. &., 2003). An
incorporate materials or items coming about because of the creation procedure or ones that don't
satisfy the quality prerequisites. A few items can be revised to meet the quality prerequisites,
while the overabundance items should be discarded or reused to diminish costs and the
environmental effect (Blanc, 2006).

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Distribution returns: Distribution returns refer to all returns that are began by a supply s chain
actor during Distribution, after the product has been made. There are various types of distribution
returns Such as product recalls, commercial returns, and stock adjustments (De Brito, 2004).
 Product recollections include complex products that are recalled because of safety or
health issues where the producer or a provider is the creator and not the customer.
 Commercial returns happen when a purchaser has a promised option to return products to
the seller. These might be the consequence of wrong/harmed conveyances to items with a
too short remaining time span of usability or unsold items that retailers or wholesalers
return.
 Stock modifications happen when a channel part redistributes stocks, for example
between distribution centers or shops on account of regular items.

Customer or user returns: Buyer or consumer returns are those that are initiated by the
purchaser or user of the product for the final consumption and can include refund guarantees,
warranty and service returns, end-of-use returns and end-of-life returns which explain as follows.
 Refund guarantees include clients being offered chances to alter their opinion about the
buy.
 Guarantee and services returns include the wrong working of items during utilize, or a
services identifying with the product.
 End-of-utilization returns have conditions where the client has the opportunity to restore
the item at a specific phase of its life. At the end of the day, these items are returned after
some time of utilization inferable from end of rent, exchange or substitution.
 End-of-life returns at the point when items have achieved the finish of their physical or
temperate life, end-of-life returns happen.

2.5 Reverse Logistics In Large Grocery stores:

According to (Parente, 2002) grocery store can be characterized as all exercises which include
the way toward selling items and facilities to end customer. Backwards logistics in grocery stores
concern with the unused and waste products that are not used and go back. Food waste or food
misfortune is the uneaten nourishment or not consumed by the customers. The food misfortune
happens at every phase of supply chain the backwards logistics in eatable in necessary it help to
reduce waste material and improve the flow of operations. The impact of eatable waste effect on

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environment for example: greenhouse gas. The reverse logistics can be connected on the food
processing industries to decrease nourishment wastage. In any grocery stores reverse logistics
play significant role it helps to improve the quality of food and provide safe food to the
consumer. According to (Arrieta, 2016) in reverse logistics procedure, a management may
decide that the items have no surplus value, are out of date or unsalvageable or are unsafe to use,
important to dumping of those products at a landfill.

2.6 Supermarket:
Supermarket consists of such as grocery, butcher, cleaning products. It provides carts and baskets
to consume without requiring presence of seller. Another important feature of this sector is high
turnover of product with low profit margin. Super market comprises of butcher, cleaning item,
and so on and gives carts and baskets container to use and without requiring presence of seller.
Another important element of this division is high turnover of item with low overall revenue. As
per (SR, 2003), retail is separated into selling of general merchandise and offering of services,
and supermarkets are embedded in the nourishment retailing category.
Now day’s supper market has experienced a few changes. As indicated by (JJ, 2006) these
progressions have happened mostly because of the impact of society, which is progressively
aware of the shortage of natural asset. The protection of the earth should be the purpose of
consideration in organizations working in retail after a socially capable position. Retailers are
currently expecting another part; focusing on the reduction of waste, reusing and reuse and
making the impact of expanding their obligation to the final customer (MR, 2010).

2.7 Actors of Reverse Logistics:

Actors of reverse logistics involved how the value of products can be recovered. Actors can be
distinguished into collectors/processors, receivers, and returners. Anyone can be a returner
which can include customers. In supply chain receivers can be found easily in the form of
retailers, suppliers, manufacturers, wholesalers. In reverse logistics there are actors which
incorporate reverse logistics activities like collection and processes of the product. Actors of
logistics have different goals like a manufacturer may do reusing in order to avoid trader to
resale his items at a lower cost. In order to save their production cost firms use different criteria
like for the production of new product organization use recycle raw material.

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2.8 Factors for an Effective Implementation of Reverse Logistics Systems:

Both strategic and operational factors merge simultaneously to have considerable impact on
reverse logistics practices. As theory, present by stock (1992) and dowlatshahi (2000). A study
has been undertaken regarding internal/ strategic and external/operational factors of reverse
l+ogistics activities.

2.9 Strategic Factors in Reverse Logistics:

Strategic planning of organization differs due to landscape of their businesses and their historical
direction & planning within the organization (Cooper, 1992). In addition to organization should
recognize their long term objectives and take one step forward to reach those goals. On the other
hand (Dowlatshahi, 2000) said strategic factors contains strategic cost, quality, client service,
environmental factors, governmental concerns. These points are important and should be
examine prior to operational factors.

2.10 Operational Factors in Reverse Logistics Systems:

The Operational factors influencing the reverse logistics systems includes a cost-benefit analysis,
transportation, warehousing, supply management, packaging as well as refurbishing and
dismantling (Dowlatshahi, 2000). Although the operational factors are not of equal importance in
all situations, firms should consider each of them in terms of their relative importance to the
situation being examined (Dowlatshahi, 2000).

2.11 Drivers Behind Reverse Logistic:

The drivers of reverse logistics are a genuinely new idea that emphasizes the environmental point
of view of organization. Reverse logistics manages the retained, unused, items or unused basic
materials in a reverse logistics channel of delivery which is called revere movement. Normally
reverse movement starts with buyer and end which makes totally the opposite to the logistic
activates. The system of the study depends on the maker's point of view to reverse logistics
movement. With respect to drivers of the reverse logistics, there are three components reverse
logistics which are economics, corporate citizenship and legislation.

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  Economics: Preparing returned or utilized items give cost advantage to any firm. At
times, reusing of items can be an inexpensive source of raw material when the
manufacture of new items is significantly more costly than improving. Recovering the
value of returned items through reuse and reprocess that give opportunity to organization
to improve their revenue (Govindan K. S.). Practices of reverse logistics like reusing,
have been getting increase in consideration, as chances to decrease the cost of production
by the use of recycled (Seth, 2011). The market of second hand product also give an
opportunity to save the cost, as item returns can be sold to low price after returned,
lessening those items' potential lost (Lee, 2012).
 Legislation: The legislation refers to any authority which says that an organization must
to improve its items or accept them back (Peters, 2009). Since the strict legislation about
the ecological issues express it’s the producer obligation, organizations are qualified for
recoup their items or acknowledge them back. Organizations are considering responsible
for the entire item life cycle.
 Corporate Citizenship: Corporate citizenship refers to that principle of firm that
considers being dependable with reverse logistics activities. A feasible image is important
when creating or marketing item hence; practicing reverse logistics allows organization
to keep up a positive picture and increases client trustworthiness (Lamsali, 2013). Raise
in governmental and social demand for stability show a requirement for green standards
to be available in each part of an organization (Lamsali, 2013). Like an organization get
force to increase of recycling and making of environmental friendly items, which
enhances the supportability of nature (Rahman, 2013).

2.12 Research Gap:

Globally, companies have implemented reverse logistics as an integral part of their Business
environment. Due to the lack of awareness of reverse logistics among senior management
perspective and experiences of the supply chain professionals working in the large grocery stores
can be gathered on which substantial studies are not find in the literature, so for gauging the
experiences and views of the professionals qualitative approach has been opt, while these
practices are not carried out in a systematic and holistic manner. secondly, there is a
methodological gap, normally studies are available on the verifying of factors and quantitative

18
although very context has different drivers and barriers so first exploration and insights are
needed to be captured for which in-depth interviews would be required which can be possible
through qualitative. Furthermore, reverse logistics, by and large in local context, has failed to
find its position in competitive strategies of the organizations, especially the companies having
no international / global presence.
There is a high need to explore reverse logistics in the context of barriers and drivers behind
reverse logistics practices in large grocery store and whether it truly has potential to benefit the
company on social as well as environmental bottom lines. Furthermore, there is a need for
investigation into possible methods for reuse and recycle of the returned products for more
economical/ commercial justification of the reverse logistics.

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 Chapter 3: RESEARCH METHODOLOGY

3.1 Research Design

The main objective of this study was to explore reverse logistics in the context of barriers and
drivers behind reverse logistics practices in large grocery store and whether it truly has potential
to benefit the company on social as well as environmental bottom lines. Furthermore, there is a
need for investigation into possible methods for reuse and recycle of the returned products for
more economical/commercial justification of the reverse logistics. Hence this is a qualitative
study and so the research philosophy of this study was the philosophy of interpretivism. In order
to understand drivers and barriers of Reverse logistics in large grocery stores of Pakistan an
inductive research approach was carried out while the research strategy which was used in this
study was exploratory. As this study explored further different perspectives leading to the
research choice of this study being mono-method as this study is only a qualitative study. The
span of time for this study was assumed as cross sectional because the time frame for this study
to be conducted was restricted. The collection of data was compiled through conducting a series
of interview

3.2 Participant Selection

To conduct this study the supply chain managers of large grocery store were targeted and were
furthered interviewed. To proceed with the study we targeted seven different leading grocery
stores and interviewed seven managers until a saturated point in the collected results was
attained. The profile information for the mangers is displayed briefly in Table 3.2

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Table 3.2: The profile of the participants
Participant Gender Grocery Stores Job Title Length

1. Male Naheed Supply Chain Manager

2. Male Imtiaz Floor Manager 10 min

3. Male Jan Supermarket Floor Manager

4. Male Al-Wardah Supply Chain Manager 10 min

5. Male Green Mart Procurement Manager 10 min

6. Male Hyper Star Department head 25 min

7. Male Family Supply Chain Manager 7 min

3.3 Sampling
The sampling method of this study is non-probability in which convenience sampling was
considered. Managers of different Grocery store were interviewed so that they could share their
experiences and different perspectives in the implication of Reverse logistics. Furthermore, a
series of unstructured open ended questions in the interviews were conducted until the saturation
point in the collected data was obtained.

3.4 Data Collection Method

The data was collected from seven different mangers of grocery stores in the form of face to face
in-depth interviews. The interview protocol which was used to conduct interviews was adopted
from different previous researches and was modified further then conducting face validity and
further approving it by our supervisor.

21
 Chapter 4: Matrix

4.1 Context Analysis Matrix

Themes/Category R1 R2 R3 R4 R5 R6 R7
1 Definition of Reverse Reverse It is the Reverse Unsold Return Reverse
Reverse logistics logistics process in logistics goods products logistics
logistics is the is a which we includes are to is a
process procedur return the the returned supplier process
which e damaged, processing to the if it’s not which
helps us which returned of manufact Sold helps
to helps us or expired returned urer or is a replace
manage replace product goods for damaged unsold
the unwante caused by exchang item. or
product d damage. e of new expired
that does products products. products
not by new with new
sell due ones. ones.
to its
expiry
or
damage.
2 Significance It helps Reverse It helps us Its It helps Yes, if Reverse
of us clear logistics to vacate beneficial us in we don’t logistics
reverse up is our for us due reducing practice is
logistics the mess adopted occupied to costs and it importan
of to clear warehous exchange provides then t because
returned up the es. of those customer affects if we
or returned products satisfacti our have
expired products that on. business, some
products which expired and expired
from our are and mutual dairy
warehous compile damaged gains products,
es. d in between the
our both supplier
warehou parties. has to
ses. replace
it.

22
3 Reverse Reverse In our Reverse It is mostly Depends Reverse Reverse
logistics logistics stores logistics applied of on sale, logistics logistics
on products is applied reverse is applied confection Mostly is is mostly
on edible logistics
on eries like applied applied applied
items. is consumab biscuits to on on dairy
Like applied le items and Frozen almost products.
Chips, on Especially chocolates. and dairy all
Fresh eatablesdairy Also on Items. products
milk and like products, dairy like
Yogurt. chocolatjuices products FMCG
e and and and frozen items.
biscuits.
chocolates items.
.
4 Reverse Compani The The Those Compan We The
logistics es have supplier voucher products y prepare supplier
procedure assigned weekly along that are distribut return visits
different visits with the expired or or stock list once a
bookers our store product is damage collects then week
and these and sent to the products the supplier and
bookers replaces respected simply product receives replaces
deal with the company sent to which is damaged the
the products which company exchang items expired
billings, with a replaces through ed with and or
forward new or refunds supplier. new replaces damaged
and one. us items. them. product
backward accordingl with a
logistics y. new one.
5 Barriers in The Pepsi Co Challenge We faced We face We are The
reverse expired never s are financial Financial facing challeng
logistics imported returns regarding challenges barriers. challeng es we
products or the on es face are
are never refunds imported the from mostly
returned, their products. products Unilever related
so we products We that are and to
have to because cannot not Nestle; customer
dispose of which return covered these satisfacti
them and we have those by the compani on.
the store to waste products, company es never
face them. the only for e.g. take
financial thing we imported returns
barrier. can do products. due to
regarding which
them is to we face
dispose it financial
ourselves. loss.

23
6 Strategies We offer We We offer We offer We try We Our
executed discounts place different low price to get rid offer strategy
for resolving on such schemes on of such low is to give
barriers such soon-to- on the products prices on 10-20%
products expire such products by those discount
whose products products that are various products on the
expiry on whose about to schemes which items
dates are discount expiry expire. like buy are whose
nearby. s or dates are one get nearing expiry
Buy one nearby. one free. their date is
get expiry nearby.
one free date.
offers.
7 Support Yes Yes Yes Yes, we Yes, Yes Yes
from have they
top support support
managers from us.
top
managers.
8 Efficient We Yes we Forecast Yes Forecast Forecast Yes we
forecasting forecast do it helps us forecasting help helps us do it
before help us by help us us while in helps
ordering to minimizin minimize ordering adjusting increase
the maximiz g the our imported the stock our
expensiv es our waste and expenses. products level profits
e profit effectivel because accordin and
and and y imported g to the reduce
imported minimiz maximizi are demand. our loss.
products. es our ng our difficult
loss. profits. to return.

9 Policy Procedur Custome We return The return The Custome The

regarding e r must most of of return of r must product
expired and regarding have the the items goods will goods return can be
return product bill of if the be will be the returned
products return is the customer accepted accepted product if the
mentione particula comes within a within within 2 customer
d on our r item within 14 week three weeks of comes
slip. that he days. days purchase within 3
We or she with . days of
replace wants to receipt purchase
food return .
items and
that are must
returned return it
within within a

24
 a week.. week of
purchase
.
10 Challenges NO Yes NO NO NO NO Yes
from
Distributors
11 Driving Yes, the We have Reverse Yes it Reverse Yes, it Yes, the
force process to logistics helps us logistics helps in process
behind of replace has create helps us building of
reverse product the helped us customer build strong product
logistics return product build trust satisfaction customer customer return
helps us from the between when we relations loyalty helps us
to gain custome the store return the hip. if we gain
customer r which and the customer's don’t customer
loyalty. help to customers damaged practice support
create . good. reverse and
relations logistics maintain
hip with then it our
that directly store’s
custome affects standard.
r our
customer
perceptio
n.
12 Environmen Yes Recyclin Yes Reuse Yes Yes it Yes
tal g is packing affects
benefits helpful material is
to the beneficial
environ for the
ment. environme
nt.
13 Area Vendor
sales return
manager. process

25
 4.2 Discussion:
All of the supervisors had the same perspective and structured the same definition of reverse
logistics. According to them reverse logistics is the process which helps them in managing the
products that do not sell due to its expiry or damage. They have set terms and condition with the
companies to replace their returned or expired products with new ones. Every firm has agreed to
replace the expired or damaged products except imported products. Almost all of the supervisors
agreed that reverse logistics is very important because warehouses or receiving areas are a
backbone of any grocery store, if a store is receiving a product properly, it can provide proper
services to its customers. Reverse logistics is adopted to clear up the returned products which are
compiled in the warehouses. This clears up the accumulated mess of useless products, and the
new space can be utilized for other purposes. Hence, reverse logistics has a huge impact on
customer services. But few supervisors had different views regarding its significance, for them
the only significance of reverse logistics was to replace the expired or damaged product with a
new one because the expired product was not liable for sale, but its exchange allows them to sell
a new product. Reverse logistics is mostly applied on edible items due to their limited expiry
dates. Items such as dairy products (fresh Milk, Yogurt, Creams, Cheese), chips, biscuits,
chocolates, frozen items, medicines etc. These expired products are replaced by new ones on a
weekly basis by the company. In most of the stores, reverse logistics is implemented in the same
way. There can be hand to hand return, shelf life expiry or return based on customer complaint.
Either way, a voucher is issued from the purchase department. The voucher along with the
product is presented to the supplier, who visits the store weekly. The supplier inspects the
product and replaces or refunds us accordingly. An account is maintained of these dealings as
well.
The main challenge faced by majority of the store supervisors in implementation of reverse
logistics was related to imported products. These products are not replaced by the companies
upon its expiry, hence the store has to dispose of it itself and bear the loss. However, according
to some supervisors of comparatively smaller stores, face the same challenge regarding local
products, as companies like Pepsi, Unilever and Nestle do not replace their products and these
stores have to bear the cost. To overcome this hurdle, all of the store have the same strategy that
is to implement schemes which helps increase the sales of such products. Schemes include
product discounts, promotions and buy 1 get 1 free deals. The top management of every grocery

26
store supports the process of reverse logistics as it helps maximize the profits and minimize the
loss. The supervisors consider forecasting an important aspect of reverse logistics, the purchase
department monitors customer purchase and needs; it creates an order sheet based on the
customer demand. They use it to order a predetermined amount of goods. This helps the store in
forecasting an amount of goods which is needed. This decreases the waste and effectively
maximizes the profits. However, the priority items in forecasting are the imported products as
they cannot be replaced, and the store itself has to bear the cost. Therefore, efficient forecasting
results in ordering a set amount of these imported items according to customer needs.
Nearly all of the stores have the same policy regarding expired, returned or damaged products.
The customer should present with the receipt of purchase along with the item and the customer
should come within 2 weeks of purchase. The item is inspected and if it is covered within the
return policy, it is replaced. In some of the stores, the return process is same but they require the
customer to come within 3 days. Most of the respondents reported that they did not face any
challenges in getting the products replaced by the distributor, But few of them stated that there
have been some errors in delivery or packaging which is eventually solved and they do receive
the product albeit late.
Reverse logistics has been playing an important role in protecting the environment. The returned
products are recycled for use for e.g. the packaging can be used again. The rest of the product is
discarded properly, hence reducing the carbon footprint. All of the stores noted that the
customers are their first priority. The stores try their best to minimize any inconvenience faced
by the customers in returning the product. This way the customer is granted an easy refund or
replacement and leaves the store satisfied. All this contributes in building a loyal customer base
for the respective stores.

27
 Chapter 5 Conclusion
5.1 Conclusion
5.2 Recommendation
5.3 Practical implication

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APPENDIX

Interview Protocol

Drivers and Barriers of Reverse Logistics Practices: A Study of Large Grocery Retailers of
Pakistan

Time of Interview:_____________________________

Date:_________________________________________

32
Interviewer:____________________________________

Interviewee:____________________________________

Q1: What is your name?

Q2: What is your designation at your organization?
Q3: What is your Qualification?
Reverse Logistics:
Q4: What do you understand by reverse logistics?
Q5: How important do you think reverse logistics is for stores operating in Pakistan?
Q6: At what level is reverse logistic adopted in your store?
Q7: On which products is reverse logistics mostly applied on in your store?
Process:
Q8: How is the process of reverse logistics implemented in your store?
Barriers:
Q9: Discuss the challenges you face in implementation of reverse logistics in your store?
Q10: What are the internal/external barriers to reverse logistics and what is your strategy to
tackle them?
Q11: Discuss support of top management in reverse logistics implementation at your store?
Q12: Have you faced any financial constraint in the implementation of reverse logistics?
Q13: How important is efficient forecasting to facilitate the process of reverse logistics?

Cognitive Reasons:
Q14: What is the procedure regarding the return of expired products at your store?
Q15: What is your policy regarding customer returns of products?
Q16: Do you face any challenges of returns from distributors?
Drivers:
Q17: What is your view regarding practicing reverse logistics and its benefits to the
environment?
Q18: Do you think reverse logistics will help in building customer loyalty and good will of your
store?

33
34