Implementation of reverse logistics as a sustainable tool for raw material purchasing in developing countries: The case of Venezuela

• Published in: International journal of production economics 2013-02, Vol.141 (2), p.582-592
• Main Authors: García-Rodríguez, Francisco J., Castilla-Gutiérrez, Carlos, Bustos-Flores, Carlos
• Format: Article
• Language: English
• Subjects: Communication; Developing countries; Environment; Handmade sector; Information systems; LDCs; Logistics; Operations research; Purchasing; Raw material purchasing; Raw materials; Remanufacturing; Reverse logistics; Studies; Sustainable development
• ISSN: 0925-5273; 1873-7579
• DOI: 10.1016/j.ijpe.2012.09.015

This study aims to analyze and understand the benefits that acquiring raw materials through the application of reverse logistics can generate, especially in developing countries. An empirical study has been carried out in the handmade sector of five municipalities in the state of Mérida, Venezuela, into the contingency factors of reverse logistics (information and communication systems, total ownership costs and life cycle of products), as well as the effect of uncertainty. A case study methodology was used to test the effect of the independent variables on the “raw materials purchasing” variable, and involved the technique of stepwise multiple regression. The results reveal that the preference for purchasing raw materials through reverse logistics is mainly determined by the “uncertainty” variable, contingency factors of “information and communication systems” and the “life cycle of products”. According to the results, firms in the handmade sector should implement an information system and be in constant communication with their customers, who play a dual role as buyers of their products and as input suppliers, therefore, greater contact can help reduce uncertainty. Handmade sector workers make products with a long average life cycle and, therefore, with greater chances of being reused, restored, repaired and to finally be subjected to recycling. National and local authorities should encourage the application of reverse logistics in other productive sectors, such as manufacturing, agriculture, services, as it can reduce the problem of acquisition of production inputs and mitigate environmental damage caused by the production of raw materials.