Development and Implementation of Reverse Logistics Programs, by
James R. Stock. Council of Logistics Management (CLM), Oak Brook, IL,
1998. Pp. 247. $35.00 for members and $70.00 for nonmembers.
This study represents an update and major extension to the
author's 1992 CLM White Paper on Reverse Logistics (RL). A central
theme of the 1998 version is that all firms (regardless of industry,
size, or location) can benefit from managing RL activities. The current
interest and state of development in RL is described as analogous to
that which occurred in the inbound logistics area ten to twenty years
ago. A key premise is that RL is an important portion of the total
logistics process as was inbound logistics and, therefore, should be
recognized and managed as such.
Today RL is viewed as an area that offers great potential to
"reduce costs, increase revenues, and generate additional
profitability" for firms that manage the process well. In the
study, the RL process is defined as the role of logistics in product
returns, source reduction, recycling, materials substitution, reuse of
materials and waste disposal, as well as refurbishing, repair, and
remanufacturing (to extend life). This process involves taking a
long-term view of products from "cradle to grave" including
The study is organized into four chapters and three appendices.
Chapter 1 represents an introduction and presents definitions and
discussion of such topics as reverse logistics, sustainable development,
and green marketing, as well as providing an overview or flow model of
the RL process and its key components. In addition, Chapter 1 summarizes
the highlights of the 1992 White Paper (since it is out-of-print) and
examines the rationale for managerial concern over RL and environmental
Chapter 2 is entitled "Concepts, Approaches and Methodologies
Relevant to Reverse Logistics" and focuses primarily on the topics
of activity-based costing (ABC), process mapping, and life cycle
assessment or analysis (LCA). The presentation on LCA was well done and
judged especially relevant given the non-engineering background of many
logisticians. Chapter 3 presents the findings and includes an update of
the 1992 White Paper as well as new findings from the 1998 study. In
addition, the chapter presents findings from the study regarding RL
practices and strategies in the three key process component areas of
materials acquisition, logistics activities, and end-of-life programs.
It also identifies and evaluates the major considerations and steps in
developing and implementing RL programs.
Chapter 4 presents the conclusions of the study and examines the
financial, management and control, and measurement factors critical to
the success of RL strategies and programs. The chapter also addresses
the question of "What can be learned?" by looking at some of
the best RL practices of companies throughout the world. It is
interesting to note that approximately half of the examples represent
companies outside of North America, illustrating the truly global nature
of and concern over this topic.
Adding strength to the study is the inclusion of three appendices
and a comprehensive reference section. Appendix A contains ten detailed,
how-to examples using company case studies. Appendix B summarizes a
number of relevant environmental certification programs, directives, and
regulations, as well as providing example environmental policies from a
variety of firms. Lastly, Appendix C contains a sampling of internet
sources on RL and related topics.
In summary, Stock has done an admirable job of examining topic as
broad and intricate as reverse logistics. The book provides a wealth of
information in terms of examples, cases, strategies, and tactics
relating to the management of RL. Moreover, it offers much food for
thought and practical advice regarding the development and
implementation of RL programs. As such, the book does a good job of
integrating theory with practice and is highly recommended for
practitioners, researchers, and educators desiring to follow the latest
trends and issues pertaining to this rapidly emerging area of logistics.