Innovative business models and strategies for reverse logistics

Abstract

Reverse logistics (RL) is a vital strategic business function of the modern business ecosystem, focusing on promoting environmental sustainability and supporting the circular economy. This chapter explores the evolving landscape of reverse logistics through a comprehensive review of real-world case studies that organisations across various sectors use to enhance their reverse logistics operations, making them more efficient, profitable, and sustainable. The primary objective of this study is to identify and analyse various business models and strategic approaches adopted by the organisations. Using a literature review methodology, the research synthesises practical implementations of reverse logistics strategies and findings, categorising innovations in business models into closed-loop supply chains, product-service systems (PSS), Take-Back/Buy-Back Programs, and Remanufacturing and Refurbishment Models. It discusses digital-enabled reverse logistics platforms and examines strategic practices, such as collaborative partnerships, green packaging, and return forecasting. The findings reveal that firms adopting technology-driven and customer-centric reverse logistics strategies are better positioned to reduce operational costs, recover value from returned goods, and achieve sustainability goals. Additionally, integrating circular business models with supply chain functions significantly contributes to competitive advantage and waste reduction. This research is beneficial for students and scholars in supply chain management and sustainability studies, as it provides a comprehensive understanding of strategic trends in reverse logistics. It bridges the gap between academic theory and business practice by providing actionable insights for industry practitioners aiming to optimise reverse logistics operations. It also guides policymakers in designing sustainable supply chain practices regulations.