Reverse logistics and circular economy: A literature review

Abstract

The application of circular economy (CE) principles in reverse logistics (RL) processes involves the recovery, recycling, reuse and remanufacturing of materials that return from the consumer to the producer. This literature review assesses whether the manufacturing sector, technology, supply chain (SC) structure, customers’ preferences, and policy makers influence the diffusion of circular RL, highlighting the strategies adopted by companies. The results show different levels of circular RL implementation in different industries. Technology is an enabler but also an obstacle, as it requires large financial resources and a skilled workforce. The involvement of all SC stakeholders proves to be a critical factor in the successful implementation of circular RL, although the likelihood of success depends significantly on producers being the initiators. Policymakers also play a key role in guiding business investment in circular RL projects. This article summarizes the literature on CE and RL on analytical dimensions rarely studied together, providing researchers, companies and public decision makers with an overview of the most critical factors influencing the management of RL within circular processes. Controversial findings, open questions, and promising lines of future research are also outlined.