Abstract
Purpose – The purpose of this paper is to examine the changes in governance structures that evolved
as reverse logistics systems were developed. The UK car crash repair sector was used as a case study.
Design/methodology/approach – The value-chain governance framework proposed by Gereffi et al.
was used to assess changes in governance systems as firms developed a reverse logistics flow and three
transactional variables were used to determine how supply chains are governed and change. Both
forward and reverse product flows for two supply chains were assessed to determine what changes in
governance of the supply chain took place as reverse logistics operations developed.
Findings – The authors’ analysis documents how relationships between the focal firm and other
supply chain members altered as the new reverse logistic system developed. The modular governance
structure that developed through increased supplier capability coupled with higher levels of
knowledge and information codifications were shown to be important factors in the establishment of a
reverse logistics system. Supplier capability, knowledge codification and transaction complexity were
found to be moderating variables which can enrich the traditional models on buyer-supplier
relationships based on trust and ongoing commitment.
Practical implications – Reverse logistics continues to be a major issue for business. Our findings
provide an insight into some of the governance and knowledge management developments as focal
firms respond to growing pressures to re-use materials and parts. In total, six factors were identified
which can assist firms in assessing their current governance structures and the development of a
pathway for implementation of reverse logistics.
Originality/value – Little research has been conducted into supply chain governance structures
needed to manage the new reverse logistics systems for the re-use, recycling and repair of products.
Keywords Supply chain management, Governance, Operations management,
Supply chain governance structure, Logisitics, Reverse logistics, Crash repair, United Kingdom
Abstract
Purpose – The purpose of this paper is to examine the changes in governance structures that evolved
as reverse logistics systems were developed. The UK car crash repair sector was used as a case study.
Design/methodology/approach – The value-chain governance framework proposed by Gereffi et al.
was used to assess changes in governance systems as firms developed a reverse logistics flow and three
transactional variables were used to determine how supply chains are governed and change. Both
forward and reverse product flows for two supply chains were assessed to determine what changes in
governance of the supply chain took place as reverse logistics operations developed.
Findings – The authors’ analysis documents how relationships between the focal firm and other
supply chain members altered as the new reverse logistic system developed. The modular governance
structure that developed through increased supplier capability coupled with higher levels of
knowledge and information codifications were shown to be important factors in the establishment of a
reverse logistics system. Supplier capability, knowledge codification and transaction complexity were
found to be moderating variables which can enrich the traditional models on buyer-supplier
relationships based on trust and ongoing commitment.
Practical implications – Reverse logistics continues to be a major issue for business. Our findings
provide an insight into some of the governance and knowledge management developments as focal
firms respond to growing pressures to re-use materials and parts. In total, six factors were identified
which can assist firms in assessing their current governance structures and the development of a
pathway for implementation of reverse logistics.
Originality/value – Little research has been conducted into supply chain governance structures
needed to manage the new reverse logistics systems for the re-use, recycling and repair of products.
Keywords Supply chain management, Governance, Operations management,
Supply chain governance structure, Logisitics, Reverse logistics, Crash repair, United Kingdom
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