Financial Performance, Environmental Compliance, and Social Outcomes: The three Challenges of Reverse Logistics. Case Study of IBM Montpellier

For economic, legal, or strategic reasons, manufacturers of electrical and electronic equipment (EEE) are increasingly managing end-of-life product cycles by choosing a recovery option: refurbishing, remanufacturing, and recycling. Reverse logistics is a process in which manufacturers collect their used products for possible revalorization, recycling, or disposal. Some authors consider that this activity is an opportunity to achieve a triple bottom line - economics, environment, and social - benefit. However, beyond hypothetical assumptions, little empirical research provides practical knowledge about the way such a challenge can be met. The aim of this article is thus to provide some grounding for this proposal. Based on an IBM Montpellier case study, this article examines how an integrated reverse logistics model can enable companies to meet three main objectives:(1) Provide economic opportunities through the resale or reuse of machines and parts, (2) successfully deal with environmental challenges such as waste management and legislation compliance, and (3) achieve an important social challenge in terms of local job preservation.