Flexibility and effectiveness in reverse logistics of product returns in the form of parts and sub-assemblies

Reverse logistics has become a major component of extended producer’s responsibility. The dynamic nature of reverse logistics and the uncertainties within it demands more investigations on its variables. This paper elaborates the findings of a survey using factor analysis in investigations of factors influencing return handling of products in the form of parts and subassemblies. The Statistical Package for Social Sciences version 17 was used to analyze the effect of independent variables on key dependent variables. A survey was carried out over the firms experiencing product returns in terms of parts and sub-assemblies in the vicinity of Mumbai, India. It revealed product design, retrieval centers, information technology, return policies; organizational role and forecasting have significant effect on the flexibility and effectiveness of reverse logistics of parts and sub-assemblies. Implementing reverse logistics with adequate consideration to these factors could bring enterprises a competitive advantage and many business opportunities. This research contributes to theory of reverse logistics with an anticipation of providing guidelines to the enterprises taking up the reverse logistics program.