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Sustainability 13 12743 v2
Sustainability 13 12743 v2
Sustainability 13 12743 v2
Article
Prioritizing the Solutions to Reverse Logistics Barriers for the
E-Commerce Industry in Pakistan Based on a Fuzzy
AHP-TOPSIS Approach
Muhammad Hamza Naseem * , Jiaqi Yang and Ziquan Xiang
School of Transportation and Logistics Engineering, Wuhan University of Technology, Wuhan 430063, China;
styjq@whut.edu.cn (J.Y.); xiangziquan@whut.edu.cn (Z.X.)
* Correspondence: muhammadhamza@whut.edu.cn or hamzanaseem1a@outlook.com; Tel.: +86-156-2362-3820
Abstract: In the past few years, reverse logistics practices have successfully managed to gain more
attention in various industries and among supply chain researchers and experts. This is due to
globalization, environmental concerns, and customer requirements, which have asserted industries’
concerns for reverse logistics management. In E-commerce, the process of reverse logistics originates
with parcel refusal, undelivered goods, and exchanges. In developing countries like Pakistan, the
adoption and implications of reverse logistics are still at their early stages. E-commerce companies
give more attention to forward logistics and ignore logistics’ upstream flow in the supply chain. This
study aims to identify, as well as list, the barriers and obtain the solutions to those identified barriers,
and rank the barriers and their solutions so that logisticians and experts can solve them as per their
priority. From the extensive literature review and experts’ opinions, we have found 14 barriers in
implementing effective reverse logistics. Eight solutions to those barriers were also found from the
Citation: Naseem, M.H.; Yang, J.;
literature review. This paper proposed the methodology based on fuzzy analytical hierarchy process
Xiang, Z. Prioritizing the Solutions to (fuzzy-AHP), which used to get the weights of each barrier by using pairwise comparison, and fuzzy
Reverse Logistics Barriers for the technique for order performance by similarity to ideal solution (fuzzy-TOPSIS) method, which was
E-Commerce Industry in Pakistan adopted for the final ranking of solutions to reverse logistics. The case of the Pakistan E-commerce
Based on a Fuzzy AHP-TOPSIS industry is used in the proposed method.
Approach. Sustainability 2021, 13,
12743. https://doi.org/10.3390/ Keywords: reverse logistics; AHP method; TOPSIS method; reverse logistics barriers; E-commerce
su132212743 supply chain
Figure 1.1.Reverse
Figure Reverselogistics processininE-commerce.
logistics process E-commerce.
Reverse
Reverse logisticsmanagement
logistics management is is the
thekey
keytotosuccess
success forfor
businesses
businesses in any industry,
in any industry,
especially in the E-commerce industry, where customer retention
especially in the E-commerce industry, where customer retention and satisfaction dependand satisfaction depend
on on
howhow effectivelythe
effectively thecompany
company can can manage
managethe thereturns
returnsto increase
to increaseits customer
its customer experi-experi-
ences [5]. Therefore, companies need to look after both the forward and reverse flow of
ences [5]. Therefore, companies need to look after both the forward and reverse flow of
goods in the entire supply chain. The reverse logistics process starts where the formal sup-
goods in the
ply chain entire
ends. supply
Effective chain.
reverse The programs
logistics reverse logistics process
constructively startsthe
influence where the formal
bottom-line
supply chainproductivity
and boost ends. Effective reverse
by reusing, logistics programs
remanufacturing, constructively
refurbishing, influence the bot-
and environmentally
tom-line and boost productivity by reusing, remanufacturing, refurbishing,
friendly disposal of goods [6]. Pakistan is among the eight fastest-growing economies and environ-
mentally
globally,friendly
and the disposal
penetration of of
goods [6]. Pakistan
the E-commerce is among
business the eight
in Pakistan fastest-growing
is swift. According to econ-
the Ministry
omies globally,ofandCommerce report, Pakistan’s
the penetration E-commerce business
of the E-commerce business growth
in Pakistanis 35%isinswift.
the Ac-
first quarter of the year 2021. Moreover, the E-commerce business
cording to the Ministry of Commerce report, Pakistan’s E-commerce business growth is in Pakistan subsidized
35%more thanfirst
in the 30%quarter
of the country’s
of the yearoverall
2021. GDP [7].
Moreover, the E-commerce business in Pakistan
In E-commerce, an important key factor of reverse logistics called reverse management
subsidized more than 30% of the country’s overall GDP [7].
requires more attention to deal with it. If handled efficaciously, it will lead the company to
In E-commerce,
retain customer loyalty an [8].
important key factor
In developing of reverse
countries logistics
like Pakistan, called reverse
the bothersome thingmanage-
is
ment requires more attention to deal with it. If handled efficaciously,
that reverse logistics is still not being handled effectively and taken seriously. Due to this,it will lead the com-
pany to retain
it has becomecustomer
an importantloyalty
matter[8].that
In needs
developing countries
to be resolved. likeare
There Pakistan, the bothersome
a lot of barriers that
thing
needis to
that
bereverse logistics
identified, which is still not being
implement reversehandled
logisticseffectively
practices to andbe taken seriously.
challenging and Due
unsuccessful.
to this, it has become an important matter that needs to be resolved. There are a lot of
barriersMoreover,
that needthe to benature of eachwhich
identified, barrierimplement
is different,reverse
and it is impossible
logistics to solve
practices all chal-
to be
barriers
lenging at unsuccessful.
and the same time. Therefore, the priority and ranking of barriers and solutions for
Sustainability 2021, 13, 12743 3 of 20
successfully implementing reverse logistics practices are required [9]. Many noteworthy
studies have identified different barriers, factors, and solutions for executing reverse
logistics practices in many countries and different industries [10–12]. However, to the best
of our knowledge, none of the research studies have been done before on identifying the
barriers and their solutions to reverse logistics problems for the E-commerce industry in
Pakistan. This research gap drives the goal of this paper, so this study aims to find and
prioritize the solutions to barriers of reverse logistics practices in the E-commerce industry
of Pakistan.
Moreover, it is necessary to rank and prioritize the solutions and the barriers in
effective reverse logistics programs. These can be easily identified and resolved by E-
commerce businesses on a priority basis. It is impossible to rank those solutions and
barriers with personal feelings, and there is vagueness in the solution. It is difficult for
decision-makers to decide under uncertainty and ambiguity [13]. Therefore, to resolve this
issue, this paper proposed a methodology based on fuzzy analytical hierarchy process,
in which pairwise comparisons were used to find the weights of each barrier and fuzzy
technique for order performance by similarity to the ideal solution is applied to get the final
ranking of solutions for reverse logistics execution programs. Moreover, the significance
and contribution of the paper are given below:
The findings of this research study assist E-commerce companies in Pakistan resolve
the top barriers in reverse logistics executions and adopting solutions for those barriers
based on their preferences. This will lead E-commerce businesses to retain more customers
and get a competitive advantage.
This study also helps government bodies, policymakers, and logistics managers to
develop policies according to the actual ranking of barriers that causes the problem in the
successful implementation of reverse logistics practices. Moreover, this study is opening
the gate for new researchers and reactionaries in this field.
The paper is further divided into the following sections: Section 2 presents a detailed
literature review on the reverse logistics barriers, their solutions, method choice, and
assortment. Section 3 defines the methodology and proposed framework of methods. The
applications of proposed methods to prioritize the barriers and ranking of solutions to
E-commerce reverse logistics are given in Section 4. Section 5 highlights the discussions
and elaborates the results of the case study. Finally, the conclusions of this study are given
in the last section.
2. Literature Review
This section reviews the literature on reverse logistics in Pakistan, specifically in the
E-commerce industry, identifying and explaining the barriers and solutions to reverse
logistics. Finally, it justifies the methods adopted by this study through a literature review.
of reverse logistics and its barriers to Pakistan’s manufacturing industry. Mushtaq et al. [17]
studied reverse logistics route selection in the electronic industry of Pakistan. Waqas
et al. [18] found the impact of reverse logistics barriers on sustainable firm performance and
took the case of Pakistan’s manufacturing industry. However, there is no such literature on
E-commerce reverse logistics barriers and solutions for successfully implementing reverse
logistics practices in the E-commerce industry, specifically in the Pakistani context.
We have identified eight solutions to reverse logistics barriers from a detailed literature
review and experts’ opinions. Table 2 explains the solutions with their sources.
process by integrating more than one method. Very few studies have been found in
andthefuzzy TOPSIS,
past that work which mainly barriers
on prioritizing identifyand
andranking
prioritize
theirthe solutions
solutions. So, to the barriers in
to overcome
this shortcoming,
reverse we proposed the
logistics implementation in hybrid methodology
the E-commerce based on
industry offuzzy AHP and fuzzy
Pakistan.
TOPSIS, which mainly identify and prioritize the solutions to the barriers in reverse logistics
implementation
3. Research in the E-commerce industry of Pakistan.
Methodology
3. This study
Research has adopted a three-stage methodology for prioritizing both solutions and
Methodology
barriersThis
for reverse
study has logistics
adopted implementation. In the firstfor
a three-stage methodology stage, the current
prioritizing bothstatus of the E-
solutions
commerce
and barriers for reverse logistics implementation. In the first stage, the current status barriers
industry is defined, the reverse logistics barriers and solutions to those of
forthe
successfully
E-commerce implementing reversethe
industry is defined, logistics
reverse practices have been
logistics barriers and identified.
solutions toThe
thosesecond
barriers
phase for successfully
of this study usedimplementing reverse logistics
the fuzzy analytical hierarchypractices have
(fuzzy beenmethod
AHP) identified.
toThe
find the
secondfor
weights phase of this
criteria and study used thedesigned
sub-criteria fuzzy analytical hierarchy
for reverse (fuzzy
logistics AHP) method
barriers, to
also prioritize
find the weights for criteria and sub-criteria designed for reverse logistics
those barriers. After that, the fuzzy TOPSIS method was used to prioritize and rank the barriers, also
prioritize those barriers. After that, the fuzzy TOPSIS method was used to prioritize and
solutions of reverse logistics. The combination of these methods was used to improve the
rank the solutions of reverse logistics. The combination of these methods was used to
multi-criteria
improve the decision-making process [9,34].
multi-criteria decision-making The
process schematic
[9,34]. diagram
The schematic of the
diagram of research
the
methodology is presented
research methodology in Figurein2.Figure 2.
is presented
Figure 2. Methodology
Figure forfor
2. Methodology prioritizing
prioritizingsolutions to reverse
solutions to reverselogistics
logistics implementation
implementation barriers.
barriers.
method, fuzzy triangular fuzzy numbers (TFNs) are used for the pairwise comparison
scale of fuzzy AHP. Chang [51] presented the extent method used for the synthetic extent
analysis adopted in this study.
> >
Definition 1. If A1 = (l1 , m1 , u1 ) and A2 = (l2 , m2 , u2 ) are representing two fuzzy triangular
numbers, then algebraic operations can be expressed as follows [34]:
> >
A 1 + A 2 = ( l1 , m 1 , u 1 ) + ( l2 , m 2 , u 2 ) = ( l1 + l2 , m 1 + m 2 , u 1 + u 2 ) (1)
> >
A 1 − A 2 = ( l1 , m 1 , u 1 ) − ( l2 , m 2 , u 2 ) = ( l1 − l2 , m 1 − m 2 , u 1 − u 2 ) (2)
> >
A 1 × A 2 = ( l1 , m 1 , u 1 ) × ( l2 , m 2 , u 2 ) = ( l1 l2 , m 1 m 2 , u 1 u 2 ) (3)
> >
( l1 , m 1 , u 1 ) l1 m 1 u 1
A1 ÷ A2 = = , , (4)
( l2 , m 2 , u 2 ) l2 m 2 u 2
> −1
1 1 1
A 1 = ( l1 , m 1 , u 1 ) = , , (5)
u 1 m 1 l1
j
And all Mgi ( j = 1, 2, 3, 4, 5, . . . , m) are TFNs, which are shown in Table 3.
" # −1 !" # −1 !
m n m m m m m n m
1 1 1
∑ ∑∑ ∑ ∑ lij , ∑ mij , ∑ uij ∑∑
j j j j
Si = Mgi × Mgi Mgi = Mgi = j =1
, j =1
, j =1
(6)
j =1 i =1 j =1 j =1 j =1 j =1 j =1 i =1 j =1 ∑in=1 ∑m uij ∑in=1 ∑m mij ∑in=1 ∑m lij
where l is the lower limit value, m is the most promising value, and u is the upper limit
value.
Step 2. The degree of Possibility of S2 = (l2 , m2 , u2 ) ≥ (l1 , m1 , u1 ) can be defined as:
sup
V (S2 ≥ S1 ) =y≥ x [min(µs1 ( x ), µs2 (y))]
where x and y represent the values on an axis of the membership function of each criterion,
this expression can be seen in Equation (7) below:
1 i f m2 ≥ m1
V ( S2 ≥ S1 ) = 0 i f l1 ≥ u 2 (7)
l1 − u 2
otherwise
(m −u )−(m −l ) 2 2 1 1
Sustainability 2021, 13, 12743 10 of 20
To compare S1 To
andcompare (S1 ≥𝑆 S, 2both
S2 , both 𝑆Vand ) and𝑉(𝑆V (S≥2 ≥
𝑆 )S1and
) are𝑉(𝑆
required.
≥ 𝑆 ) are required.
Step 3. The degree
Step of Possibility
3. The degree for a convex fuzzy
of Possibility number
for a convex S to number
fuzzy be greater be kgreater th
than
𝑆 to
convex fuzzy numbers Si = (numbers
convex fuzzy i = 1, 2, 3,𝑆. .=. k(𝑖) can be defined
= 1,2,3, … 𝑘) canas:be defined as:
V (S ≥ S1 , S2 , . . . , Sk ) = V [(S ≥ S1 ), (S ≥ S2 ), . . .𝑉(𝑆 ≥𝑆Sk, 𝑆)]=
, (S ≥ ≥ 𝑉[(𝑆
, 𝑆 ) (S =
, …minV Si ), i≥=𝑆 1,),2,
(𝑆3,≥. .𝑆. ,),k … , (𝑆 ≥ 𝑆 (8)
)
N
1
a = min{labN }, b =
N N ∑ p abN , c = max{u abN }
N
(11)
n =1
where a = 1, 2, · · · , m, b = 1, 2, · · · , n.
!
aij bij cij
For benefit indicators : pe = , , , c∗j = maxcij (13)
c∗j c∗j c∗j
a− −
j aj aj
−!
For cos t indicators : pe = , , , a−
j = minaij (14)
cij bij aij
e = pe × w j .
where, V
Step 5: Determine the positive ideal solution and the negative ideal solution.
For Positive ideal solution:
+
+ +
+ max vij j ∈ J
A = v1 , · · · , vn , where v j = (16)
min vij j ∈ J 0
Step 6: Calculate the distance between each plan and the positive ideal solution and
the negative ideal solution.
v v
u n 2 u n 2
di+ = t ∑ vij − v+ , i = 1, 2, · · · , mdi− = t ∑ vij − v− , i = 1, 2, · · · , m
u u
j ij (18)
j =1 j =1
Sustainability 2021, 13, 12743 12 of 20
di−
CCj = , i = 1, 2, · · · , m (19)
di+ + di−
Step 8: Sort the choices as per the similarity degree and select the best choice.
4.2. Phase 2: Identification of Reverse Logistics Barriers and Solutions for Adopting Reverse
Logistics
For this purpose, seven academic experts have been selected as decision-makers, and
barriers and solutions were identified through literature review and expert’s opinion. This
research study has selected five criteria and 14 sub-criteria used to prioritize the reverse
logistics barriers see (Table 1). Eight solutions to resolve those barriers have been prioritized
and ranked (Table 2). Moreover, the questionnaire forms used for data collection from
experts are given in Appendix A of the paper.
4.3. Phase 3: Fuzzy AHP Method to Calculate the Weights of Barriers to Reverse Logistics
Adoption
The decision-makers evaluate the criteria and sub-criteria defined above based on
TFNs given in Table 3. The fuzzy decision matrix and fuzzy pairwise comparisons of
criteria and sub-criteria, along with their calculated weights, are given in Tables 5–10.
MB IB CB PB FB Weight Rank
MB (1,1,1) (2,3,4) (0.25,0.33,0.5) (0.25,0.33,0.5) (0.33,0.5,1) 0.138 5
IB (0.25,0.33,0.5) (1,1,1) (2,3,4) (3,4,5) (0.33,0.5,1) 0.238 1
CB (2,3,4) (0.25,0.33,0.5) (1,1,1) (2,3,4) (0.25,0.33,0,5) 0.21 3
PB (2,3,4) (0.2,0.25,0.33) (0.25,0.33,0.5) (1,1,1) (1,2,3) 0.183 4
FB (1,2,3) (1,2,3) (2,3,4) (0.33,0.5,1) (1,1,1) 0.231 2
The fuzzy synthetic extent of five criteria is calculated by Equation (6) is shown
in Table 11. After that, Equation (7) was used to calculate the value for the degree of
Possibility (V-value), which are shown in Table 12, then we used Equation (7) to calculate
the minimum (V-values), which are shown below:
MB IB CB PB FB
MB 1 1 1 1
IB 0.582 0.889 0.774 0.973
CB 0.702 1 0.887 1
PB 0.825 1 1 1
FB 0.643 1 0.924 0.818
Sustainability 2021, 13, 12743 14 of 20
Through normalization, the final weights of the criteria are obtained, which are:
Due to the same process for weight calculation of other criteria, the calculation process
of reaming criteria is not presented here. However, the weights of other criteria and final
results of pairwise comparison of criteria and sub-criteria are presented in Table 13.
4.4. Phase 4: Fuzzy TOPSIS Method for Ranking and Sorting the Solutions of Reverse Logistics
Adoption
Table 4 shows the correspondence between linguistic variables and fuzzy triangular
numbers. The solutions are compared with each barrier to developing this matrix which is
shown in Table 14. Decision-makers use Table 4 to perform the fuzzy evaluation on the
solution, shown in Table 15. Here only one expert evaluation matrix is given due to space
constraints. After that, Equation (11) is used to find the fuzzy aggregate decision matrix.
The results are shown in Table 16. This paper considered all barriers as cost criteria, so
Equation (14) is used to get the normalized fuzzy decision matrix shown in Table 17. In
the next stage, the weights obtained by the fuzzy AHP method are used in the calculation
Equation (15) to obtain the weighted normalized aggregate decision matrix, as shown
in Table 18. Since this article regards the standards as cost standards, the fuzzy positive
ideal solution is defined as A+ (0, 0, 0) and the fuzzy negative ideal solution is defined
as A− (0, 0, 0), and then the Equation (18) is used to calculate the distance between the
positive ideal solution and the negative ideal solution, and then use Equation (19) to obtain
the closeness coefficient CCi , as shown in Table 19. The results obtained by using the above
methodology are given below.
Sustainability 2021, 13, 12743 15 of 20
... ... ... ... ... ... ... ... ... ...
... ... ... ... ... ... ... ... ... ...
S6 (0.008,0.013,0.028) (0.004,0.007,0.031) (0.009,0.012,0.024) . . . ... (0.019,0.026,0.046) (0.012,0.017,0.043) (0.006,0.013,0.048) (0.003,0.004,0.012)
S7 (0.008,0.011,0.028) (0.004,0.007,0.031) (0.005,0.009,0.016) . . . ... (0.019,0.025,0.046) (0.014,0.019,0.043) (0.007,0.012,0.024) (0.003,0.005,0.024)
S8 (0.008,0.012,0.028) (0.004,0.007,0.031) (0.006,0.011,0.024) . . . ... (0.023,0.029,0.046) (0.012,0.017,0.028) (0.007,0.012,0.024) (0.003,0.005,0.012)
Sustainability 2021, 13, 12743 16 of 20
good relationship with the third-party logistics providers. However, the least priority
solution is to provide visual details of the actual products on the E-commerce platform. So,
the decision-maker should consider these prioritized barriers and solutions while deciding
on reverse logistics implementation in Pakistan’s E-commerce Industry.
6. Conclusions
Adopting reverse logistics practices arises as environmental concerns increase and
green logistics, green production, and waste management grow. Henceforth, it is essential
for the Pakistani E-commerce industry to consider the importance of reverse logistics
practices and should move towards adopting them. As Pakistan’s E-commerce industry is
growing and moving towards a good direction, the need for reverse logistics management
increases that need to be managed effectively because there are a lot of barriers and
several solutions to resolve those barriers in successfully implementing reverse logistics
practices; this is made difficult for decision-makers to make the right choice. For this
purpose, this study used hybrid fuzzy AHP and fuzzy TOPSIS multi-criteria decision-
making methods in which fuzzy AHP was used to prioritize and rank the barriers to
reverse logistics implementation, and fuzzy TOPSIS method was used to rank the solutions
to overcome these barriers in reverse logistics practices adoption. We have identified
14 barriers and eight solutions to reverse logistics adoption through literature review and
experts’ views. The results of this study presented that top management support and
awareness is the essential solution in the case study of Pakistan’s E-commerce industry.
This ranking of barriers and solutions is beneficial for policymakers, decision-makers,
and logistics managers for developing policies and successfully implementing reverse
logistics practices. For future studies, researchers should investigate the Industry 4.0
technologies’ involvement in reverse logistics management. Future studies can combine
both industrial and government bodies to formulate standardized policies for reverse
logistics management. Future researchers can also check the involvement of Industry 4.0
technologies in the management of reverse logistics. Moreover, other MCDM methods such
as ANP, ELECTRE, and fuzzy VIKOR would be used to compare the proposed framework
results. Also, future studies can use different attributes and extend this study by choosing
decision problems of another industry.
Appendix A
This section of the paper provides the Questionnaire forms used for data collection
from experts. Each of the seven experts was asked individually to complete the data
form truly to avoid mistakes. Figure A1 presents the values for each linguistic variable,
such as (E denotes “equal”, VL denotes “very low”, etc.). This helps decision-makers to
evaluate each criterion with respect to other criteria to make a comparison. For a better
understanding of how data were collected from experts, Figure A2 provides the blank
data form for the main barriers criteria. All of the experts were asked to complete this
form using the values given in Figure A1. The experts have used the data form given in
Figure A3 to provide information related to eight solutions.
(E denotes “equal”, VL denotes “very low”, etc.). This helps decision-makers to evaluate
each criterion with respect to other criteria to make a comparison. For a better understand-
ing of how data were collected from experts, Figure A2 provides the blank data form for
the main barriers criteria. All of the experts were asked to complete this form using the
values
Sustainability 2021, given in Figure A1. The experts have used the data form given in Figure A3 to 18 of 20
13, 12743
provide information related to eight solutions.
The same type of data forms was used to collect data for the other criteria and sub-
The same
criteria, and due to space type of data
limitations, forms
those waswere
forms usednot
to collect
givendata
here.for the other criteria and sub-
criteria, and due to space limitations, those forms were not given here.
Figure A3.
Figure A3. Questionnaire
Questionnaire data
data form
form for
for solutions.
solutions.
References
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