Closing the Circle – Assessing the reverse logistics practices in the case of Samsung Electronics Logistics Europe in the Netherlands and Slovakia

Abstract

One of the key challenges caused by the increasing human impact on our planet relates to production and consumption systems. Electronic products are one example of such a system, which contributes to resource scarcity and generates one of the fastest growing waste streams. This waste stream is estimated to increase in Europe by 30% to 12 million tons until 2020. The concept of circular economy is seen both by the academic community and politicians as potential solution for addressing this problem, as it aims amongst others at the recovery of waste and thus at a closed material cycle. One of the most prominent forms of recovery is recycling, however there are other disposition alternatives such as for example repair or refurbishment, which may be both environmentally and economically superior. Those different disposition alternatives are incorporated in the concept of reverse logistics, which describes the management of products from a point of manufacture, distribution or consumption to a point of recovery. Reverse logistics can also be considered as part of corporate sustainability. However, there is surprisingly little literature that discusses reverse logistics as part of corporate sustainability. Further, there is a lack of exploratory research that examines to what extent the more recent disposition alternatives discussed in literature is actually incorporated on a company level. This research addresses the identified knowledge gaps by developing a framework that allows the assessment of the extent to which companies incorporate reverse logistics and thus circular economy in their practices. The framework merges the concepts of reverse logistics and corporate sustainably by using the five-step policy cycle structure of corporate sustainability management frameworks and tailor it to reverse logistics. This framework is applied to the case of Samsung Electronics Logistics Europe (SELS), a subsidiary of Samsung Electronics, which is one of the largest electronics producers in the world. SELS is responsible for the distribution of electronic products in Europe from warehouses in the Netherlands and Slovakia. The research finds that in the case of SELS the most prominent disposition alternative used is recycling. But also other, more unconventional ways in dealing with returned and damaged products such as in-house consumption and donations are identified, highlighting the dynamic nature in this emerging field of study.