Collaborative Reverse Logistics for Small and Medium Businesses Using Shared Infrastructure

Abstract

In the era of sustainable manufacturing and circular economy, reverse logistics plays a pivotal role in enhancing product lifecycle management, particularly for small-scale industries. The goal of this study is to create a cooperative reverse logistics model for two related small-scale enterprises that use comparable commodities to produce goods. These individual businesses find it extremely difficult to repair and refurbish their returned or damaged items because of their limited financial resources, staff, and technical competence. A centralized repair and recovery facility is suggested as a solution to this problem, whereby goods from both businesses are gathered, evaluated, and fixed via a common infrastructure. Cost-sharing between the two businesses is made possible by the shared facilities, which enables bulk raw material acquisition at discounted prices. Further lowering operating costs is the management of maintenance and refurbishment procedures through the pooling of labour. The strategy increases customer trust and product longevity by providing free repairs to clients, which benefits middle-class consumers in particular who may otherwise throw away repairable things. By extending product life, this cooperative strategy decreases waste production, lessens resource exploitation, and supports environmental sustainability. An Excel-based study validates the suggested approach, proving its viability from an economic and environmental standpoint. This study emphasizes how collaborative reverse logistics solutions may support sustainable production and consumption habits while bolstering the resilience of small-scale companies.