Environmental Degradation and Resource Depletion: Impact on Global Climate

Environmental benefits of the Reverse Logistic process as part of a Sustainable Supply Chain

Among the major causes of global warming and climate change includes the fast depletion of natural resources as well as the unmindful disposal of non biodegradable waste that pollutes the environment impacting its eventual productivity and ability to maintain sustainability ( Michaels, 2007). Patz et al. (2018) points out that the natural environment is suffering irreversible damage due to the excessive increase in exploitation of natural resources such as forests, fresh water bodies’ natural gas and oils as well as the increased industrial waste that effectively pollute the environment. While some of these resources are renewable, Grimmond (2007) points out that the current rate of their exploitation greatly exceed the rate of their regeneration, presenting a problem of natural sustainability of resources all across the globe.

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As such the need to develop regeneration methods of some of the key resources vital for human life and existence is key in ensuring sustainability of the supply chain. According to Ho et al. (2012) Reverse Logistics is one of the recently developed processes that impact sustainability of the supply chain. Reverse Logistics include the ‘process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal (Neto and Correia, 2019). Govidan, Soleimani & Kannan (2015) explain that Reverse Logistics, as part of the Sustainable Supply Chain, is a perfect alternative to prevent and control the overindulgent amount of industrial waste that is affecting the natural environment through its 5R process: Re-manufacturing, repairing, refurbishing, reuse, and recycling (Elmus and Erdogmus, 2011).

Reverse logistics enables the recycling and reuse of different materials and waste products in the process of developing new products and as such, not only enable proper disposal of waste materials through putting them into new use, but also enables the conservation of raw materials and resources which further enhances the sustainability of the supply chain (Breen et al. 2000) subsequently, this minimizes the negative environmental impact caused by the manufacturing industry. (Srivastava, 2007)

Reverse Logistics is an emerging trend that comes along with a sustainable competitive advantage (Lai, Wu, and Wong, 2013). According to (Chen et al. 2018), the effectiveness of Reverse Logistic in achieving environmental benefits is based on a successful execution; It is not just about the Supply Chain strategy and manufacturing process but also the corresponding customer behavior and their ability to contribute in enabling the process. It exhibits a collateral effect in customers, raising the level of environmental awareness and stimulating them to be part of the Reverse Logistic process, subsequently helping the industry to reduce industrial waste by recycling a tremendous number of finish goods.

The study undertaken purposes to evaluate the environmental benefits of the Reverse Logistic process as part of a sustainable supply chain and the impacts it has in environmental management and the conservation of natural resources

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References

  • Breen, L., Burnes, B., Whittle, P. and Hey, R. (2000). The benefits of reverse logistics: the case of the Manchester Royal Infirmary Pharmacy. Supply Chain Management: An International Journal, 5(5), pp.226-234.
  • Chen, D., Ignatius, J., Sun, D., Zhan, S., Zhou, C., Marra, M. and Demirbag, M. (2018). Reverse logistics pricing strategy for a green supply chain: A view of customers' environmental awareness. International Journal of Production Economics.
  • Elmus G. and Erdogmus F. (2011). The Importance of Reverse Logistics. International Journal of Business and Management Studies 3(1), pp161-171
  • Govindan, K., Soleimani, H., and Kannan, D. (2015). Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future. European Journal of Operational Research, 240(3), pp.603-626.
  • GRIMMOND, S. (2007). Urbanization and global environmental change: local effects of urban warming. The Geographical Journal, 173(1), pp.83-88.
  • HO G. T. , C.H.Y. Lam, David W.C. Wong, (2012) "Factors influencing implementation of reverse logistics: a survey among Hong Kong businesses", Measuring Business Excellence, Vol. 16 Issue: 3, pp.29-46
  • Lai, K., Wu, S. and Wong, C. (2013). Did reverse logistics practices hit the triple bottom line of Chinese manufacturers?. International Journal of Production Economics, 146(1), pp.106-117.
  • Michaels, P. (2007). The greenhouse effect and global change: review and reappraisal. [online] Taylor & Francis. Available at: https://www.tandfonline.com/doi/abs/10.1080/00207239008710583 [Accessed 30 May 2019].
  • Oliveira Neto, G. and Correia, J. (2019). Environmental and economic advantages of adopting reverse logistics for recycling construction and demolition waste: A case study of Brazilian construction and recycling companies. Waste Management & Research, 37(2), pp.176-185.
  • Patz JA, Frumkin H, Holloway T, Vimont DJ, Haines A. Climate change: challenges and opportunities for global health. JAMA. 2014;312(15):1565–1580. doi:10.1001/jama.2014.13186
  • Srivastava, S. (2007). Green supply-chain management: A state-of-the-art literature review. International Journal of Management Reviews, 9(1), pp.53-80.

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