Sustainability Challenges in Resource Supply

Introduction

Increased industrialization and human activity have adversely impacted the environment causing global climatic situations and changes: including global warming, increased hurricanes and earthquakes as well as the depletion of natural resources (Mgbemene, Nnaji and Nwozor, 2016: Patnaik, 2018: Bhandari and Garg, 2016). This is much so due to the insatiable human needs and the slow regeneration rate of the natural resources as compared to their exploitation and as such presenting the problem of sustainability of natural resources and by extension the supply chain of other resources. This problem has thus led to the need to mechanically regenerate resources so as to satisfy the human demand against the slow process of natural regeneration through different methodology, one of which includes reverse logistics. Neto and Correia (2019) define Reverse Logistics as 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. This research aims to evaluate its benefits as relates with the sustainability of the supply chain.

Significance of the study

The balance of nature has for the longest time been the most crucial element in the sustainability of natural resources and consequently the supply chain of resources required by human beings for survival (Frederick, 2016: Carvalho, 2009). However the age of industrialization has caused increased exploitation of natural resources for fuel as well as pollution as a result of the industries thereby significantly impacting the balance. Natural resources are depleting fast and the pollution is leading to natural hazards such as climate changes which necessitate the need to develop mechanical means of sustainability. One such way is through reverse logistics which enables the reuse, recycling, refurbishing, re-manufacturing and repairing of used resources. This effectively minimizes the exploiutation of resources as well as the pollution footprint, thus enabling a cycle of sustainability. Given that reverse logistics in and of itself is also a mechanical process evaluation and appraisal of its benefits in the ultimate sustainability of the supply chain is of importance to ensure its effectiveness. This enshrines the significance of conducting this study so as to ascertain that reverse Logistics is indeed effective in the sustainability of the supply chain.

Literature Review

Introduction

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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Reverse Logistics

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.

Skapa and Klapalova (2019) however points out that very limited research has been conducted on the management characteristics that lead to the effective and successful implementation of reverse Logistics. In addition David and Shalle (2014) premise that adoption of reverse Logistic processes by companies is due to the increased competition caused by globalization and rapid technological changes which push industries and organizations to make efforts of improving their supply chains and cutting down on their unsustainable production and pollution of the environment. Moreover reverse Logistics is also highly dependent on the cooperation of consumers in the process of returning used products for recycling or reuse as well as using effective disposal techniques that enhance reverse logistics of reusable and key resources to the human daily consumption (Morelli, 2011: Osten, Kirley and Miller, 2017: Richey, Chen, Genchev and Daugherty, 2005). All these provide a limitation in the effectiveness of the process and its efficiency in ensuring sustainability of the supply chain. The sustainability of the supply chain is dependent on the input as well as the output of the products in question and is more of a cycle rather than an exploitation and regeneration process. Failure of the consumers and customers to properly dispose of their used products for reverse Logistics lead to the environmental pollution while ineffective disposal of the products stalls the process altogether. Given the process of reusing or recycling other products such as plastics and metal include an actual mechanical process which may in itself also lead to the emission of harmful waste the process of reverse logistics may in itself cause pollution which also limits the sustainability of the supply chain. This dilemma highlights the research question; whether reverse logistics is beneficial in the sustainability of the supply chain and thus the research aims 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

Hypothesis

Reverse logistics not only impact the speed and process of natural resource exploitation by offering alternatives to the exploitation of these resources through the reuse, recycling, repairing, remanufacturing and refurbishing of resources but also minimizes the disposal of used resources thereby cutting down on the pollution footprint. This greatly enhances the regeneration process of the natural resources. These highlights two of the major benefits of reverse logistics in a sustainable supply chain pointing out the hypotheses in the research project to include

Reverse Logistics provides alternatives for natural resources and thus minimize their exploitation thereby enhancing sustainability of the supply chain

Reverse Logistics minimizes the pollution footprint thereby enhancing the natural resource regeneration process which in turn enhances sustainability of the supply chain.

Aims and Objectives

Aim

The study aims 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. To be able to adequately handle the study, the researcher further broke down the aim into various specific objectives that can be adequately tackled using conventional research methodologies and data collection. These objectives include:

Objectives

Evaluate the benefits of reverse logistics in sustainability of the supply chain

Highlight some of the factors that are necessary for effective implementation of reverse Logistics

Identify the impact of reverse logistics in environmental management and conservation of natural resources.

Research Questions

What are the benefits of reverse logistics in the sustainability of the supply chain?

What are some of the factors that are necessary for the effective implementation of the process of reverse logistics?

What are the overall impact of reverse logistics in environmental management and the conservation of natural resources?

Methodology and Research Design

Introduction

Research methodology refers to the application of science in the various processes and activities concerned with a research study Kumar (2005). It involves a progressive outline of the procedures and guidelines involved in the actual research study aimed at deducing inferences and conclusions from findings derived from the application of scientific tools, techniques and principles. This chapter will entail the outlining and familiarization of the actual processes that make up the research study and enable its sequential conduction for significant primary data findings that are crucial in the investigation being carried out. Further, it involves the study and application of scientific tools techniques and principles that are well known and outlined by a variety of scholars who will also be mentioned.

Research Design

The research design taken up is crucial in the determination of other elements of the research including research approach as well as data collection and analysis methodology. It also dictates the structure of the study that are effective for the research investigation (Cresswell and Plano, 2011; Saunders, Lewis and Thornhill, 2009). The study takes up a qualitative research study design given its aim which seeks 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. This design is suitable especially given its use in studies that predominantly involve the use of words rather than quantification in the compilation and investigation of data such as this one. This is contrary to the other research design Quantitative Study which involves the usage and analysis of data that can be numerically and statistically quantified (Fallon, 2016).

Target Population

Population refers to a group of people, objects or subjects or items that produce a significant impact or have relevant impact to any specific element of the research study and as such present a unique perspective on the research (Gobo, 2011). Morse and Richards (2002) further emphasize that these are people with a specific attachment or approximate to the features or subjects of the study that are being researched. The study aims 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. As such the target population will mostly involve operations managers of companies that are involved in reverse logistics as one of the strategies and initiatives taken up for the sustainability of the supply chain of the products they supply.

Sampling

As highlighted by Blaikie (2010), the awareness of a researcher as to the magnitude and extent to which ones population extends and therefore the confines from which the sample for study can be selected is a key consideration in the decision of which sampling technique to be employed. Palinkas et al., (2015) further emphasizes that understanding the different logical explanations that baseline sampling approaches is crucial in being able to understand the distinction between qualitative and quantitative sampling techniques. Given the wide range of companies that use reverse Logistics in the process of sustainability, the researcher used convenience random sampling to select 10 companies whose operations managers especially with regards to the reverse logistics process made up the respondents to the study.

Research Methods

Given that nature of the research being a qualitative study and its wide scope of determining the benefits of reverse logistics in the sustainability process of the supply chain as well as the impact of reverse logistics in environmental management and conservation of the environment the researcher used semi structured questionnaires and informal follow up interviews as the main methods of primary data collection. The semi structured questionnaires inquired into the process of reverse logistics as applied by a company, its benefits as well as the factors that impact its successful implementation and whether or not it was efficient in its intended purpose. The informal interviews were afterwards used for clarification of complex points as well as ensuring the validity and reliability of the information provided by the respondents.

Data Analysis

The data collected will be analyzed using thematic analysis. Thematic analysis, used as a form of analysis for qualitative research studies focuses on examining themes, patterns and connections within raw data collected through different research methods such as interviews as applied in this research study. Accurate and replicable inferences are made from the analysis of the various patterns and themes regarding benefits and the implementation processes of the reverse logistics process to highlight its efficiency in the sustainability of the supply chain.

Ethical Considerations

The research involves the collection of primary data that involves human interaction and the use of humans as the major information source. Ethical issues therefore arise concerning the relevant courtesy to be afforded the various individuals while collecting this information as outlined by British Psychological Association (2013). The ethical issues in this study concerns involvement of employees within different companies who depend on these employments for their survival and as such, it is paramount that the research do not compromise in any way their positions in the organization. To avoid ethical issue therefore the study will focus on interviewing only willing participants and further keeping their names and identity anonymous so as to enhance their privacy.

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Limitations of the Study

Among the major challenges and subsequently the limitations to the study includes securing permission of different companies to carry out the research among their employees, this provides a major difficulty in the process of collecting information and may impact the credibility of the information collected eventually. In addition different companies have developed different processes of reverse logistics implementation. As such the level of benefits accrued from it is highly dependent on the implementation process and may be significantly different from one company to another depending on the implementation strategy taken up. This provides a challenge especially in the process of data analysis impacting the development of assumptions that may further compromise the eventual integrity of the study.

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References

Bhandari, D. and Garg, R. (2016). Effect of Industrialization on Environment (Indian Scenario). Global Journal of Research Analysis, [online] 4(12), pp.281-282.

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.

Carvalho, A. (2009). A theoretical essay on sustainability and environmentally balanced output growth: natural capital, constrained depletion of resources and pollution generation. BAR - Brazilian Administration Review, 6(3), pp.213-229.

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.

David K. G & Shalle, N (2014). An Assessment of the Effects of Reverse Logistics Adoption on Supply Chain Performance in the Manufacturing Sector in Kenya: A Case of Hewlett- Packard Kenya European Journal of Business Management, 2(1), 161-173.

Elmus G. and Erdogmus F. (2011). The Importance of Reverse Logistics. International Journal of Business and Management Studies 3(1), pp161-171

Frederick, A. (2016). UTILISATION OF NATURAL RESOURCES & ITS ROLE IN SUSTAINABLE DEVELOPMENT- IN INDIAN PERSPECTIVE. International Journal of Advanced Research, [online] 4(2), pp.68-75.

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

Kumar, R. (2005). Research methodology: A step-by-step guide for beginners. 2nd ed. London: Sage Publications Ltd.

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.

Mgbemene, C., Nnaji, C. and Nwozor, C. (2016). Industrialization and its Backlash: Focus on Climate Change and its Consequences. Journal of Environmental Science and Technology, 9(4), pp.301-316.

Morelli, J. (2011). Environmental Sustainability: A Definition for Environmental Professionals. Journal of Environmental Sustainability, 1(1), pp.1-10.

Morse, J. M. and Richards, L. (2002). Readme First for a User's Guide to Qualitative Methods, Thousand Oaks, London, New Delhi: Sage

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.

Osten, F., Kirley, M. and Miller, T. (2017). Sustainability is possible despite greed - Exploring the nexus between profitability and sustainability in common pool resource systems. Scientific Reports, 7(1).

Patnaik, R. (2018). Impact of Industrialization on Environment and Sustainable Solutions – Reflections from a South Indian Region. IOP Conference Series: Earth and Environmental Science, 120, p.012016.

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

Richey, R., Chen, H., Genchev, S. and Daugherty, P. (2005). Developing effective reverse logistics programs. Industrial Marketing Management, 34(8), pp.830-840.

Saunders, M., Lewis, P. and Thornhill, A. (2009). Research methods for business students, 5th ed., Harlow, Pearson Education.

Skapa, R. and Klapalova, A. (2019). The Effectiveness of Reverse Logistics: the empirical test of its factors for product returns reduction. Journal of research Development Czech, [online] 67(1), pp.86-104.

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