Reverse Logistics in Retail Chains in Poland

Reverse logistics is an issue which is closely related to supply chain management and thus it remains within the area of interest of business economics and, in a broader perspective, management sciences. From a managerial perspective product return processes can be predicted in advance, appropriately managed and optimised. It is difficult to measure such a process in monetary terms, partly because it is not directly included in sales and profitability analyses. However, it is possible to identify the factors which affect the efficiency of handling returned products in a variety of ways (for example, information from companies, or there is no such information available because nobody checks this and it is not treated as a source of potential savings). Since the 1990s and the introduction of the balanced scorecard(Kaplan & Norton, 1996) descriptive, synthetic and subjective measures have been used in addition to financial measures. There are several reasons why it is difficult for an outside observer to measure performance results in the area of reverse logistics: Reluctance to disclose performance results in problematic areas, which could indicate a mistake or failure; The costs are difficult to determine because some of the activities involved are connected with distribution logistics, which may make the estimation of labour and transport costs problematic; It is difficult to select an appropriate non-financial measure which would fulfil all the criteria of objectivity, accuracy and reliability. Therefore, the author of this study has undertaken to identify the descriptive indicators which may have impact on reverse logistics management. Even though these measures can be considered to be discretionary and subjective, they are generally accepted and recognised by logistics specialists. Based on an analysis of the theoretical literature and the empirical studies described, the author has identified those measures which she considered to be the most significant. These include staff experience, cooperation with suppliers, as well as the use of modern information technology. The study was conducted in March and April 2013 on a group of shops belonging to retail chains in the clothing industry in Poland. The result of the study is a conceptual model as well as an empirical test for describing the relationships between the selected indicators that affect the efficiency of handling returns and the results of reverse logistics management.