The Role of Reverse Logistics in the Concept of Logistics Centers

Abstract Purpose The purpose of this research is to identify the barriers faced in the adoption of reverse logistics (RL) and the respective overcoming schemas provided by the logistics centers (LCs). However the lack of awareness on the benefits of the RL both from economic and environment angles is a major factor creating the resistance to complement the logistics activities with RL. Methodology This study follows a literature research approach in investigating the intersecting and mutually constitutive aspects of LCs and RL and offers a theoretical systematic infrastructure for the firms to be encouraged in engaging with RL through the establishment of LCs. Findings The consolidation of RL functions under the organized structure of LC would provide a wide range of opportunities and benefits for the organizations. The five major aspects endowed by the construction of a logistics village and the inclusion of RL activities in this central organizing, operational and administrative hub are; coordination and cooperation, centralization, consolidation, 3rd party RL collaboration and integration. Conclusion Along with the opportunities, the barriers in front of the establishment of a RL system and the contribution of LCs in overcoming these challenges are discussed.