Closing the Loop in Supply Chain Management: Using Reverse Logistics to Support the Development of the Circular Economy

Abstract

This study proposes a policy that helps develop reverse logistics, which is the basis for the development of the circular economy. Primary data was obtained by conducting a focus group with participants from private and public organizations. Topics were about current practices, challenges, and recommendations of supply chain, logistics, and closed-loop supply chain managements in participants’ organizations. Secondary data derived from literature about the circular economy, closed-loop supply chains and reverse logistics was incorporated with the primary data in order to derive a draft strategic policy for the development of reverse logistics and closed-loop supply chains in Thailand. Findings suggest that to develop closed-loop supply chains in Thailand must start with creating awareness in the society. It is important to make people aware of the benefits of reverse logistics in supporting the circular economy. Basic infrastructure that supports the development of reverse logistics such as sorting centers, laws and regulations are also critical. The findings obtained from the focus group were used to propose the policy related to reverse logistics. Outcome of initiating reverse logistics are: reducing operational costs, creating value-added to products, satisfying customer needs, reducing environmental impacts, and increasing corporate images. The proposed draft policy is useful for policy-makers by providing them with guiding principles. This is a starting point for developing further plans related to the development of reverse logistics and closed-loop supply chains. Academia can also use this study as a basis for further research related to reverse logistics, closed-loop supply chains, and the circular economy.