PROCESSING RETURNS PRACTICES

IN UK
Table of Contents
CHAPTER – 1: INTRODUCTION...........................................................................................1
1.1 Study Background............................................................................................................1
1.2 Research Statement..........................................................................................................3
1.2.1 Research Problem......................................................................................................3
1.2.2 Questions of Research...............................................................................................4
1.2.3 Aims and Objectives.................................................................................................4
1.2.4 Research Scope.........................................................................................................5
CHAPTER – 2: LITERATURE REVIEW................................................................................6
2.1 Introduction......................................................................................................................6
2.2 Theoretical Perspective & Conceptual Framework.........................................................6
2.3 The Effective Online Returns Practices and Management Importance...........................7
2.4 Current situation of the online returns in the UK.............................................................8
2.4.1 Effective written policy's value...............................................................................10
2.5 Return Products on a relationship between CLSC (Closed-Loop Supply Chain) and
processing capabilities.........................................................................................................11
2.6 Reverse Logistic's New Perspective...............................................................................14
2.7 Insights on the Pricing Decision Coordination through the Reverse Channels.............14
2.7.1 The Model...............................................................................................................15
2.8 Requirement of actual and potential investment in the Processing Return's functional
areas......................................................................................................................................16
2.9 Increment of Profit in the Reverse Logistics on the basis of Processing Returns..........17
2.9.1 Process of quality control........................................................................................17
2.9.2 Focus on the experience of customers....................................................................17
2.9.3 A transparent policy of Return................................................................................17
2.10 Processing return practice's impact on financial performance.....................................17
2.10.1 Supply chain Logistic Optimisation......................................................................18
2.11 Literature Gap..............................................................................................................18
CHAPTER – 3: METHODOLOGY........................................................................................19
3.1 Philosophy of Research..................................................................................................19
3.2 Approach of research.....................................................................................................19
3.3 Design of Research........................................................................................................20
3.4 Strategy of Research......................................................................................................21
3.5 Data types and data sources...........................................................................................21
3.6 Procedure of Data Collection.........................................................................................21
 3.7 Result presentation and proposed analysis.....................................................................22
3.8 Ethical consideration......................................................................................................22
3.9 Ethical issues..................................................................................................................22
CHAPTER – 4: RESEARCH GAP AND DISCUSSION.......................................................24
4.1 Implementation and Adoption........................................................................................24
4.2 Forecasting the return of the product.............................................................................24
4.3 Outsourcing....................................................................................................................24
4.4. Reverse Logistic Networks from the perspective of secondary market........................25
4.5 Disposition Decision......................................................................................................25
4.6 Numerical Investigation result with assumptions..........................................................26
CHAPTER – 5: RECOMMENDATION AND FUTURE IMPLICATION............................30
5.1 A Way Ahead.................................................................................................................30
CHAPTER – 6: CONCLUSION..............................................................................................33
REFERENCES.........................................................................................................................35
CHAPTER – 1: INTRODUCTION
In today’s world, online shopping is famous in today’s world. Also, e-commerce is mostly
preferred because all buyers can compare across stores, and then look for some better deals.
Since having an online store instead of the physical store saves resources and money,
businesses are completely able to give all these discounts. In the current years, different
surveys have already proved that the online shopping is surpassing through stores. It is more
essential than ever to ensure the website is doesn’t run perfectly and correctly but fulfills all
expectations as well as has all features that consumers expect now from the online shopping.
One important service that the consumer looks for while doing online shopping is the return
process and policy (Bernon et al. 2018).
Returns can mostly be overlooked because peoples always feel that it is the afterthought to a
process of eCommerce, however, in a reality, it is just the part of the purchasing journey of
all consumers as anything else as well as should not be thought of as an afterthought. The
return process basically begins the customer’s experience beginning, not only after their
product has been delivered or arrived. Also, more than 30% of the orders from the e-
commerce platform end up being returned as well as more of this is required to do with their
products for not matching a description.
This research basically includes detailed information about the processing return practices
with managing the reverse logistics in the United Kingdom. The literature review has
included different information and solutions for all the issues that processing returns have
faced in this research. Along with this, the methodology part will include the description of
types and sources of the data that we did in the research, also it includes strategy, design, and
the philosophy of the research, which will support determining that what type of data
research is utilized to resolve all the issues related to the processing return practices in the
United Kingdom.

1.1 Study Background

The percentage of the products or services being returned in the retailing is very high as well
as increasing continuously, yet several manufacturers and retailers are not aware of the scale
and importance of this entire issue (de Paula et al. 2019). They always considered the dealing
with a return as a doing business cause and I was also oblivious to some potential for
differences and conflicts between the return practices and social responsibility commitments
in a corporate sector. Customers always receive products or services and the communication
is a common method that can enhance the processing of Returns in the United Kingdom. The
management of processing returns leads to a greater profitability in the organization. In the
year 2020, the processing practices are returning with 308 billion dollars in positive results
for the retailers of the UK, and in the year 2019, 35 million dollars of fixed losses mainly
came from the online revenue. Currently, most of the customers with the practices of
processing return some products within the services. Most written products in the return
process usually begin with the cost of warehouse space and the inventory carrying. The
management of processing returns is considered a process of managing the mail of Business
and recording information. Therefore, the management practices of processing returns are the
important services that several consumers look for in return policy and processing. The
businesses around 75% are completely associated with the reverse logistics as well as are
within the supply chain's important members (Frei et al. 2020). The detailed procedure and
policy are taken as a general rule within the process in practices and returns which have
exchanges and returns through customers. As the firms properly respond to the stricter
regulations as well as increase the Expectations of consumers, the program of Reverse
logistics to support the management strategies of end-of-life product have become so much
more prevalent. Despite the theoretical literature's growing body on the particular topic,
several firms highly struggle to implement an effective and efficient system of reverse
Logistics.

Image 1: Processing Return Practices in the UK with Reverse Logistics

(SOURCE: https://www.parcel-link.co.uk/blog-entry.php?article=135)
1.2 Research Statement
This research contains different chapters related to the return practices in the UK and in this
the management of reverse logistics (Govindan and Bouzon 2018).

Chapter 1 is about introduction of the entire research which discusses about basic information
related to the topic of research. Along with this, a background of the research will describe
about the beginning and impact of reverse logistics and return practices in the UK.

Chapter 2 contains a literature review of the research which includes the overall research
related to the topic. This shows different segments and different forms which impact
positively and negatively the return practice and reverse logistics in the United Kingdom.
Along with this, it includes all the steps and forms that the topic of research includes.

Chapter 3 is about the Methods of the research that we took. This research basically includes
secondary data because the entire information is collected from different persons and
research. The methodology part mainly shows about the motive of the entire report as well as
it shows different strategies, approaches, philosophies of the report, and more.

Chapter 4 includes the results and discussions and research gap about the overall research as
well as it will give a proper opinion of all the persons through this research.

Chapter 5 includes the recommendation part which gives information about the present, past,
and future of the topic discussed in the research.

At last Chapter 6 includes a conclusion part which shows what we have learned and what we
have to understand from this report.

1.2.1 Research Problem

It can be seen that it is so much important to analyze potential returns as well as the return's
true cost to decrease the entire cost (Wilson et al. 2021). Managing properly with a growth in
a return results in highly realized with particular channel organization. It is important to bed a
great communication among customers and Employees with return cost reduction and
inexpensive initiatives. The online customers around 65% are always expecting a free return,
as well as 5% of them, improve in a comparison to processing returns and consumer
satisfaction.
Along with this, it can be seen that some organizations are decreasing their practices of
processing returns to increase the profitability. Several channel operations in the return
process are created along with some customer behavior. Delivery with top-quality
profitability and customer service is taken as a great solution within the practices of
processing returns.
1.2.2 Questions of Research
To meet the research goal can be very easier by improving different questions of the research.
These questions will support researcher to meet the research's specific goal as well as satisfy
the research objective.
1. What are the profit's positive results in processing the practices of return in a reverse
logistic?
2. Why is the return level having such great significance in the practices of processing
Returns?
3. What are some challenges which are faced by the practices of processing Returns?
4. What are the benefits and advantages in reverse logistics processing return practices?
1.2.3 Aims and Objectives
The research is mainly aimed at a "leading with the greater profitability in the organization".
In form of a meeting the research's aim, some important objectives have been created by the
research, which are given below:
 To identify different ways of resale, reusing, and recycling the materials supports
increasing the reputation of the brand for a responsibility to environment.
 To spend the services of a customer with spikes and emails in the practices of processing
returns.
 To develop the incentive returning procedure to customers with having the program of
loyalty in a business.
 To create some detailed exchanges in the customer services and returns with the time
period.
 To give a proper and great handling of the return that has mainly been created at the time
of transport and storage.
Along with this, the main objective of this report is to give a great processing returns
practices in the UK in the logistics of revenue (Shaharudin et al. 2019). Some of the return’s
handlings are highly confirmed with transport or storage issues. This research will also
provide a great knowledge about the logistics of revenue. In addition, speed and visibility are
taken as two different factors, which have been properly analyzed in a practice of processing
returns in the United Kingdom.
1.2.4 Research Scope
In this report is no definite proper conduct of the research into transportation and storage. In
this research, for processing the return in the UK, no particular reason has yet been found.
Therefore, the condition has been properly identified within the processing practices and
returns statement. In addition, the practices of processing returns in the United Kingdom may
work with some conduct of the research. This will highlight different solutions to the issues
created in the processing returns practices in the United Kingdom through managing the
reverse logistic.
The main issue is an inability to properly understand the returns rationale and high cost of
reverse logistic are taken as a general issue. Effectiveness in managing returns and inventory
management with the fraud and reviews are some common ways which can make the
organization build along with the procedure of return. some researches have to be shown
appropriately with the practices of processing returns in a reverse logistic. Apart from this,
the reverse logistics basically includes different strategies related to implementation and
planning for some losses which are related to the returns of the product and deducting the
cost (Mujkic et al. 2018).
Some factors that appear to be critical issues are supporting the business and increasing the
processing returns productivity in the United Kingdom. Most of the strategies of innovation
have the mission of innovation which is created with some detailed plan to make a new value.
Some critical issues are now becoming integrated deeply with the process of the management
of return as well as the reverse logistics in the multiple enterprises and modalities series. The
process of determining recycling raw material's cost-effectiveness with the management of
processing is considered very complex returns.
CHAPTER – 2: LITERATURE REVIEW
2.1 Introduction
A literature review is a study or a survey that is both a product and a process. As a process, it
includes searching for some important information which is related to the topic, providing
information to the person with a correct research as well as identifying gaps and issues in a
research. In some of cases if the person is looking to identify important arguments which are
relevant to the topic. This helps in identifying some developments in a study field, learning
about some sources of information and the methodologies of research, validating the research
project's originality, and more (Huang et al. 2020). Along with this, the literature review
includes a critical evaluation and important information on the topic and the material.

2.2 Theoretical Perspective & Conceptual Framework

The theory of financial incentives has discussed popularly the applications of the returns
which can be made with a facility of recovery in the network design of reverse Logistics.
Lastly, most major properties have a great optimal solution along with the practices of
processing returns in the United Kingdom. Therefore, most of the process of reverse logistics
includes the management of the returns as well as the surplus of materials and goods.

Improvements in the theory of demand and supply are binding within the transportation price
within a constant supply. The importance of matching supply and demand is determining
perfect relations in the goods and services available in a market. The cost of the goods,
advertisement, and income are manufacturers which completely depends on the demand for
different goods. Some of the effects of positive access are better results with additional
employment and Investments. Checked, locked, and received can provide particular handling
returns along with all the given items. What properly has been searched from previous
research is covered in the chapter. Along with this in this over all research, the last research
from the articles, journals, and reports has been properly analyzed. A relevant and collected
journals have been properly analyzed from the last work along with a theme of the research
background. This chapter and research are being analyzed in such a way as to enable it to
meet some demands of the definite research. In addition, this chapter also has provided the
perspective of theory on the topic of this research (Julianelli et al. 2020). Therefore, it may be
ensured here that all the information and details are selected from authentic and reliable
sources.
2.3 The Effective Online Returns Practices and Management Importance
The return policies or return management is perfectly defined as a process of retail logistics
operation that is highly catalyzed by the consumers to decide that all of they no longer need
or want a product as well as want to give it back. Therefore, this can be either in exchange of
the product for the refund of the full amount, in the emerging trend there is 'no return returns',
a similar product, and the same product's variation the online platform rights of return -
situations in which this is financially unconstitutional for the consumer to return an item to a
retailer as well as the retailer provides their consumer complete refund easily allowing them
to do because they please along with their products or items, which is completely damaged,
no longer required or needed, and unsuitable.

Image 2: Improvement in Reverse Logistics market with Management

(SOURCE: https://linkercloud.com/blog/ecommerce/ecommerce-returns-management-5-
tips-to-improve-reverse-logistics)

Once a customer decides that all of them does not require or want any product, or does not
have an order simply that all of them ordered, a parcel is returned with the consumer
contacting the team of customer service of the retailer, all begins by login into an online store
to properly complete a request of Return (Hammes et al. 2020). Thereafter, the consumer will
select a convenient location for the local Returns. In this situation, the service of partial return
can be sent back and booked to the retailer as well as to the outsourced center of fulfillment.
Once the mail items, packets, or parcels are returned to the warehouse, the quality check of
the product is carried out by the pack and pick items. Depending on the condition of the
returned products or items, they will either be refurbished, restocked, or in a situation of the
recycled "reverse logistics".

The research also found that most, so many customers around 66 percent returned so many
items because all of them didn't properly fit. In addition, around 39 percent of the 1,000
customers interviewed were returned because all the items or products were "not as properly
described". Along with this, 36% of all the respondents who purchased online had returned
all the products becoming the products or items look so much different in reality.

There is another reason for returning all products is a "serial returner", which customers
discover retailers are either ordering a lot or returning a lot, as well as in some cases wearing
out before returning the products (Dutta et al. 2020). Back in the year 2019 some of the main
retailers decided to properly adjust its policy of return to crack down on the serial returners.
At a Whistl all the individuals wanted to properly know that what the people thought about
all the changes which are proposed by companies and whether all of them will affect the
sentiments towards all retailers. Along with this, 76% of the survey respondents supported
highly this overall policy. But, in all only 8% of the customers is not agreed with all some of
the changes which enhance to around 60% as they pertained specifically to all the shoppers.

The last factor that determines the return rates of online purchasing is, fraud, most
surprisingly: research by the National Retail Federation basically found that of around 0.4
trillion dollars in a Merchandise as a returned to the United States retailers in the year 2020,
around 5.9% were highly fraudulent.

2.4 Current situation of the online returns in the UK

Last year the online purchases of around 8.1% were returned and refunded, so it can break or
make the profitability of the business. Therefore, research from a Circular Board has found
that 54% of the online Shoppers in the UK return their products of purchase regularly. Along
with this, a similar study found that 32% occasionally return their belongings or items. This
means that approximately 9 of the 10 Shoppers will properly deal with the return policy of
the sailors at the same point, which includes an additional unreasonable proportion of the
people who rarely or do not much return their products (Alshehhi et al. 2018).

As this concluded, why not make some returns as soon as possible, it can impact the
experience of all the online users, the lifetime value of the customer, and conversion rates.

Along with this, reverse logistics and return practices of Management are different from each
other. The return practices basically include the products collected from all customers,
delivery to full film and center and to all retailers as well as restocking the product or items.

On the other side, Reverse logistics is a huge term which can include different services like
product disposal, and recycling programs, as well as in the example of all wholesalers who
can sell on the term of credit, and the recovery of assets. Deeply embedded in the supply
chain of retailers, the reverse logistics highly monitor different variables like the returned
item's proportion that may be manufactured again.

As with the returns of online products, the reverse Logistics mainly requires the accurate
management of inventory to manage all the items which are returned, the level of stock, as
well as status of all the products which are returned (Wilson and Goffnett 2022). While the
return of online products typically prioritizes the experience of fractional customers, fast
stock profit, and replenishment, the reverse logistics in the United Kingdom can be very
easily optimized or adopted to reduce the carbon footprint of the business.

Here are some examples of the reverse logistics, including

 Recycling all products to make an alternative product.

 Refurbishing all damaged products or items so that they can easily be sold again ( or to do
so by sending back all of them to the OEM (Original Equipment Manufacturer)).
 Returning the products and packaging materials to all manufacturers to use it again in the
inborn Logistics, like thanks to increasing the demand for a sustainable packaging as well
as regulations of the government encouraging the innovations of eco-friendly packaging,
the market of returnable packaging is estimated at around 170.44 billion dollars by the
year 2013 will be of value.
 Reworking and collecting all unsold items from the brick-and-mortar stores.
 Image 3: Reverse Logistics Activities in the Return Practices in UK

(SOURCE: https://www.pinterest.com/circulareconomyasia/reverse-logistics/)

2.4.1 Effective written policy's value

The study by the researcher, the post-purchase experience platform of customers, found that
96% of all the online Shoppers will return the items to a business that gives a frictionless, the
return policy which is free from hassle, as well as 62% will repurchase from the retailers who
give a free return (Cullinane et al. 2019).

Some actionable tips for helping the business to minimize returns as well as make at a very
competitive advantage:

To make sure that the business is achieving the best practices of online returns it will be
prudent and perfect for the online merchants to:

 Profile your consumer to properly identify all serial returns as well as customize the
policy of return with the limits of return.
 Make a clear and perfect multi-channel policy of returns that keeps the customers coming
back for more products but prevents some sections from abusing and bad things the
system.
 Make sure the team of a contact center is properly changed to make returns according to
the request of a customer through live chat, telephone, or email. The policy of Return
 should be clear, ensuring that employees of call centers never ever have to create and
make some decisions, just apply the right protocols.
 Implement the strategy of multi-career delivery involving the partners of career who have
base competency in tracking and delivery of return.
 Recommend more accurate sizing of the Marketplace and website visitors to reduce
different incidences of returns related to sizing, also considered introducing the
technology of AI-powered-body-measurements to capture the body measurement of the
customer as well as translate them in a recommendation of highly accurate size while
reducing the possibility of a wrong-size return (Jayasinghe et al. 2019).

2.5 Return Products on a relationship between CLSC (Closed-Loop Supply

Chain) and processing capabilities
The processing efficiency is a major that may be expressed either numerically or statistically
in any process of the production or the product characteristics. Some particular methods of
the statistical measurements to properly identify the capabilities of the process. The closed-
loop supply chain (CLSC) basically means the great supply of every single product return,
whether it is end-of-life or discarded products. This management of a closed-loop supply
chain deals with different forwarded logistics in the background of the company. This process
primarily collects all returned products as well as parts of all the products, whether unused or
used.

The process of a closed loop supply chain also involves recycling or using the waste
materials or returning products to minimize entire waste and save some raw materials. The
relationship between closed-loop supplied Chain and processing capabilities is proportional.
Along with this if there is a maintained and good balance processing capability while the
process of production continues, that product will not be a return subject (Pushpamali et al.
2019). The continued return of the product may be in the gate that the capabilities of the
process are bad and it shows the overuse of the waste materials.
 Image 4: Process of Supply Chain in Reverse Logistics

(SOURCE: https://www.sciencedirect.com/science/article/pii/S0377221714005633)

The reverse close loop supply chain is a very tough entity, and to properly overcome this
issue, companies must process the capabilities of recovery by rework, refurbishing and
repairing, and remanufacturing all the sites. This also suggests:

a. Capability of recovery positively impacts the product return volume

Companies that highly integrate the operations and strategies functions are so much more
effective in handling the returns of the products. The return’s effectiveness was properly
measured in the form of ability of a firm to handle all returns of their quality, type, timing,
and volume (regardless). The external integration capabilities of the company also impact the
product return volume because the effective system of reverse logistics is very important to
motivate to return of product from customers (Chileshe et al. 2019).

b. The capability of integration positively impacts the product return volume

The capabilities of manufacturing are required to handle the huge variety of the return of
products in the closed-loop supply chain. For instance, the process of production must be able
to properly respond to the product return volume and uncertain timing, as well as be able to
dismantle the products, fulfill demand, recover materials, and coordinate with the
requirement of new materials.

c. Capability of manufacturing positively impacts the product return volume

The researcher identified thirteen different recovery capabilities for the product recovery, also
categorizing them as a perfect routine, revenue, or technical improvement. The capability of
routine recovery refers to the ability of form to influence all of its institutional structure by
selling as well as its impact on the future and present legislation.

Image 5: Detailed Closed-loop Logistic Network

(SOURCE: http://www.doiserbia.nb.rs/img/doi/0354-0243/2004/0354-02430402259G.pdf)
2.6 Reverse Logistic's New Perspective
At a huge level, the work's second stream properly deals with the level problems of the
supply chain related to management and design of the network reverse Logistics (Moslehi et
al. 2021). Like a forward network of distribution, in the system of reverse logistics, it can be
found that functional, information, and incentive coordination issues which result from a
pursuing optimal decisions (locally) by the members of the supply chain. the challenges and
issues of inducing the supply chain solution (optimal) while preserving a decentralized
decision-making need a deep understanding related to the three types of flows in the reverse
Logistics. These are as follows:

Financial Flows, include the buy-back clauses, end-of-use costs, and other disposal costs.
While also pricing for an original product or item is basically straightforward (relatively),
designing that contract which specifies different situations under which a product or item will
be taken back after using it is more tough and challenging, as a product quality is unknown as
well as more difficult to see and observe.

Material flows are highly impacted by the place, time, and quantity of the returns, and also
their potential of reuse products, which mostly can only be properly assessed after the
disassembly of the product.

Information flows, it is crucial to minimize the uncertainty in reusability and timing of the
product which is return, and also the time which the product completely spends in a market,
and more.

2.7 Insights on the Pricing Decision Coordination through the Reverse

Channels
This research shows that a reverse channel in the CLSC can be utilized as the new tool of
coordination by manufacturers to get a coordinator performance of the channel in the
decentralized setting (Garai and Sarkar 2022).

The literature on operation has often focused on the control of production, the network
design, and the inventory management with a reverse and forward flows. In this pricing is not
considered typically. Therefore, the segmentation of the market with a remanufactured and
new products, but mainly assumes that the technology is determined exogenously. The
research contribution of the researcher named Debo is to properly address the joint
technology selection as well as the segmentation of market in the remanufacturing context,
and also to develop the result of insightful structure.

2.7.1 The Model

A choice of Technology in this is basically modeled by the means of c n (q), which are the
costs of the unit production of all new products and items as the main function of q ϵ [0,1],
which is a utilized products fraction that is basically remanufacturable. In this, q is mainly
referred to a remanufacturability level as well as it is the manufacturer’s strategic decision
variable. Cn(q) is basically assumed to properly be the convex as well as twice differentiable
in a continuous form. The manufacturing cost of all remanufactured products of all utilized
products is cr.

Even every single customer is highly characterized with the parameter of, Ɵ ϵ [0,1], which is
mainly its willingness to but all new products. Therefore, it can be seen that willingness-to-
pay for all new products or items is highly distributed on [0,1], on the basis of F function,
where the F(Ɵ) shows the consumer type’s volume in [0, Ɵ] as well as it is the continuous
and strictly increasing function with F(0) = 0 and F (1) = 1. The consumer type’s willingness-
to-pay Ɵ for all the remanufactured products is (1 – δ) Ɵ, with δ remanufactured product’s
perceived depreciation. pr and pn denotes the remanufactured and new products or items,
respectively (Pushpamali et al. 2021). A net utilization that the customer of a type Ɵ takes
from purchasing a very new product, as well as the remanufactured product, also, no product
or item are properly denoted with Ɵ – pn, (1 – δ) Ɵ – pr, as well as 0, respectively. Therefore,
the goal of manufacturer is to increase the average profit in the infinite time horizon through
setting the level of remanufacturing, {pt = (pn,t,pr,t) t ≥ 1}. The remanufacturability’s constant
level in all the periods and time is mainly assumed since this is the selection of initial
technology which determines the value for a some time period.

Along with this, it is so much easy to properly show and determine that in any time the value
of t, customers with the willingness to pay for all the new products or items between

as well as 1 will consider to purchase a new item or product, while all customers

between and will selected to purchase the products which are

remanufactured.

Therefore, the period of result t demands the new and remanufactured product’s volume are

and respectively. Also, as no more

products which are remanufactured can be completely sold in every single period than all
remanufacturable product’s available supply, there is a constraint: .
Initially, no utilized products or items are available; pr, 0 = (1 – δ)pn,0 or r0 = 0. In every single
period, the prices of the products are completely set such that the demand is non-negative;

(Sharma et al. 2021). The infinite-horizon average-profit increase

issues of the manufacturers are:

This summarizes the main issues and insights that may be properly obtained from the overall
model.

2.8 Requirement of actual and potential investment in the Processing

Return's functional areas
In a background of the company's products, the investors were made potential investments to
meet the quantity and quality target of that selected and particular product. Therefore, the
potential investors have a very great role in the return process as they considered potential
changes through borrowing critical information as well as factors to enhance the ability of the
product to meet the producer's or manufacturer's satisfaction levels. Actual or real investment
is basically an investment of raw materials and money. Also, the actual investment includes
some investment in manual labor, automation, and machinery. This type of investment of
money has been basically created to mitigate all issues like the shortage of digital equipment,
machines, and some other raw materials. In the management of a business, a liquidity can
manage and organize every single thing (Narayana 2021). Therefore, this kind of investment
has mainly been properly done in a cash. By obtaining this kind of investment for the
company, all of them can manage the recycling and Returns of all those products or items.
2.9 Increment of Profit in the Reverse Logistics on the basis of Processing
Returns
2.9.1 Process of quality control
The reverse Logistics is sometimes a huge matter of the improvement which can be made
possible by developing the production process and skills of that particular product. First, the
flows must be properly identified, as well as they have to be rectified in a particular method
according to the needs. Also, this will support the entire company to achieve the satisfaction
of customers by providing perfect quality.

2.9.2 Focus on the experience of customers

To optimize the reverse Logistics, the organization must meet the customer's expectations.
They are required to properly focus on the requirements and their experience, like tracking
refunds and updates, when processing Reverse Logistics. Through maintaining this kind of a
clarity in the reverse Logistics, an organization can make consumers patient while the entire
process is organized.

2.9.3 A transparent policy of Return

Maintaining the transparency in the policy of Return is a perfect way to develop the
experience of a customer, which will affect directly the company's profit rate (Abbas 2018).
Maintaining and handling the transparency in the policy of Return means and ability period
for a return, the policy of refund for the return as well as other potential buyers to get a huge
idea about what to properly expect from company. Also, this will support all of them to
properly maintain a great image.

2.10 Processing return practice's impact on financial performance

Any company's financial performance completely depends on different factors of the
particular company or project. All these factors of return practices can be a basic like
availability, pricing, quality product, and some important things like the country's social
economic condition, customer range, and psychology, as well as the involvement of politics
in that particular company. There are mainly two different types of factors which have a huge
impact on financial performance of the company, and they are external and internal factors.
In internal affairs, the return practices in the UK play a very big role in that company's
financial performance. Consistent returns from all the consumers can impact highly the brand
image, which will affect its a rate of profit indirectly. Returns of different products can lead
to the inventory shortage which can create a bottleneck in the system of production. Also, this
increases of wasting everywhere.

2.10.1 Supply chain Logistic Optimisation

The optimization of supply and Logistic chain is basically a process of assuming the demand
of inventory in the coming future context (Fernando et al. 2022). Therefore, this process of
logistics optimization has been properly worked out using various statistical software as well
as some suitable analysis. This process of Optimisation uses the data of customer demand
which has been correctly recorded in a past. In a reverse logistics situation, there have been
some changes in the process of supply chain. The company also proceeds using a similar
management team of supply chain with slight modifications to that process. They mainly use
the reverse of the same process. This time all of them have included a returned product as
well as its part checking from the customer's point of view.

2.11 Literature Gap

The chain of supply is developed in a collaboration with various teams that properly work
between the process of manufacturing and final supply to all consumers as the process ranges
from the suppliers of raw materials to retailers, also sometimes even third-party vendors.
They also work collaboratively between different teams as well as the process of the work is
a complaint by the supply's systematic process (Kim et al. 2018). The supply chain of any
company consists of many teams so the collaboration between all of them is a very important
matter. In most of the cases, some complications have comes up in the process of
collaborative work. This type of complexity in the collaboration has province to be a
difference for any kind of company when dealing with the reverse Logistics.
CHAPTER – 3: METHODOLOGY
This chapter includes different methods have done for the overall research. This will show
what and how the paper research is done and created to properly explain about the topic.

3.1 Philosophy of Research

This paper of research basically follows the interpretivism philosophy. Therefore the
philosophy has been among the research papers and journals to examine different thesis work
and issues for the overall paper (Fu et al. 2021). Along with this, there are different types of
the research philosophy, including interpretationism, positivism, and realism. All this guide
the main researcher in the investigation of the issues related to the philosophy research
papers. Since this research deals with the work of research and the paper in the quantitative
aspect, however, this paper mainly follows the interpretivism research philosophy.

Image 6: Quantitative Research Method

(SOURCE: https://resources.pollfish.com/tag/quantitative-research/)

The interpretivism research philosophy basically depends on different theories which shows
that the performance of the researcher in the research has a particular role to observe a social
world. It includes different elements of the overall study. This uses the method of quantitative
research which focuses on the motivation, beliefs, and reasoning of the individuals over the
qualitative data.

3.2 Approach of research

The approach of the research is that part of any paper or research that supports them to collect
all the information as well as select them based on their relevance to the objective of the
research and topic of the research (Mohtashami et al. 2020). Along with this, different type of
research approaches includes deductive Research and inductive research approach. This
paper follows a deductive research approach because this research uses different principles
and theories to explain conclusive evidence. The Detective research approach is basically
concerned with the developing hypothesis that depends on existing theory as well as
designing the strategy of research to properly test hypothesis. it measures the entire concept
quantitatively as well as explains a casual connection between the variable and concept. So,

In the literature review part, this study shows different theories and principles, which
completely show both the negative and positive sides of reverse logistics in the return
practices in the UK. It supports understanding whether reverse logistics is profitable for the
company or not.

3.3 Design of Research

The design of research is basically a perfect guide which supports researcher to conduct the
paper of research in a systematic and proper manner. They are different types of the Research
designs including Descriptive, Explanatory, and Exploratory Research designs.

We follow the descriptive Research Design for this paper to properly and systematically
shows the overall research on the topic. As this research paper follows the interpretationist
research philosophy as well as considers the topics evaluations matter covers entire results of
the research. The closed-loop supply chain is the main base of reverse logistics which shows
the returned product process (Raza 2020). The product came back to the original
manufacturer, who will distribute and sell it again to recover the overall value and charges.
 Image 7: Descriptive Research Method

(SOURCE: https://www.questionpro.com/blog/descriptive-research/)

3.4 Strategy of Research

Strategy of a research is basically a process through which the research completions
implication will be successful. To meet all the goals of the research as well as all objectives
of this research, we collected the overall data from different sources like online articles,
journals, books, and some other sources in a secondary form.

Different kinds of themes a topic will be created that are correct for the objective of the
research. Subject-wise data has been collected and analyzed using different principles and
theories.

Theory of the closed loop supply chain management is very supported to explain about the
returned products to the original manufacturer. The connection of the closed-loop supply
chain with the reverse logistics will show the model of pricing products after return process.

3.5 Data types and data sources

The sources of data are those from which the researcher properly collects some of the
statistical reports, theories, and information. Also, this may include the gathered data or
research data of someone else. There are two different types of the sources of data and on the
basis of that type of data are also divided into different parts (Asim et al. 2019). The sources
of data are secondary and primary as well as quantitative and qualitative are the types of data.
In this paper, we collect the entire data and we research from different sources which we can
call it secondary sources like online articles and general as well as use the qualitative data
like relevant topics.

3.6 Procedure of Data Collection

The process of Data Collection is mainly based on the type of data and sources of data that
have been selected for this research paper. Secondary data supports gathering the entire
information systematically. Also, it helps to learn about the overall Research and topic from
the base.

In this research, at first, we get to know about the basic information of Return practices in the
UK and then we learn about the role of the reverse Logistic in Return practices.
As this overall research uses the secondary qualitative data to analyze in collect entire data,
the purpose of this paper is to create a relevant topic that will highly support to identification
and meeting of the objectives of the research. Information also has been collected from
secondary sources data as well as analyzed with a great relevance.

3.7 Result presentation and proposed analysis

Since the purpose of this research paper is two properly conduct the research through
analyzing a secondary qualitative data, along with the relevant topics which have to be
created on made for research. They will share equal relevance along with the objectives of the
research when creating the topics that require to be taken into an account or in the mind. On
the basis of all those objectives, all those subjects have to be searched (Kazemi et al. 2019).
Since this paper is completely dealing with the reverse Logistics of Return practices in the
United Kingdom, it requests to create some topics which highly impact or are concerned with
the reverse logistics in the UK. All those topics are themes are to be properly analyzed by the
information and theories gathered from all the secondary sources. The results of the overall
research will be publicly concluded through analysis of the aggregated data. The outcome of
the topic (reverse logistics in return practices in the UK) will be created or established
through presenting all findings as well as critically analyzing them through different images,
tables, and more.

3.8 Ethical consideration

The research paper request to follow certain appropriate ethics, protocols, and rules. Also,
this paper of research follows the similar one. Since it is the secondary work of the research
all of them should have to properly maintained some of the ethics in emphasizing the data
previously used.

In this research all the information, figures, and data required to be quoted (cited) properly
and systematically. To utilize the collected data from someone else, this research will utilize
an appropriate context or reference. The original researcher's name will be given in the
reference list. The reference list will show that from where we collect the overall data for this
research.

3.9 Ethical issues

Since this overall research is completely dealing with different matters of the processing of
return practices in the UK, some problems have been highly found in the context of which are
ethically wrong. The knowledge cap of the customer is basically one of them as well as it is
probably the biggest (Wang et al. 2021). This gap of knowledge should be completed or filled
through the organization or company, that is properly managing the process of Return. Also,
changing the expectation of customers on the part of the company or organization is also
wrong ethically.

On the other side, the scaling operations in the research have been carried out through the
companies to properly meet the increasing demand, this is basically another problem which
can be found in the process of return in the United Kingdom (in reverse logistics).
CHAPTER – 4: RESEARCH GAP AND DISCUSSION
According to the literature on issues classified for study, the gap in research analyzed and
identified overall research. The summary of the research gap and findings are properly
discussed in the below-given sub-sections.

4.1 Implementation and Adoption

A successful implementation and adoption of Reverse logistics in the UK in different sectors
have been traced. Barriers and drivers of Reverse logistics are critical for decision-making
adoption and important implementation. This research is focusing on identifying the
management system of a closed-loop supply chain in the reverse logistics. This system may
vary from one sector to another, one company to another as well as can change according to
the time. No study was found on the variations of all these factors in demographics and
sectors in the UK. Reverse Logistics's risk assessment guesses an opportunity for the research
in the coming future (Samuel et al. 2020).

4.2 Forecasting the return of the product

Models are developed for the product return forecasting for reuse and re-manufacturing
recycling by considering several business scenarios. However, researchers have not
considered the factors such as consumer behavior, regulations and rules collectivity, culture
and custom, and demographics which can make up a lot of different scenarios as well as the
forecast can affect the return of products to a great extent. Also, the method of forecasting
was either developed for remanufacturing or recycling products but no a comprehensive
model is found for the product return forecasting up to the level of disposition.

4.3 Outsourcing
Outsourcing in a research has been an important word for researchers and the corporate world
in the modern business world. Also, firms are completely focused on outsourcing activities
like core competencies. It can be seen that for many firms reverse logistics is not a part of the
core business and is a potential area for the outsourcing. Basically, Outsourcing will be
defined as acquiring different services from the external service providers. All manufacturers
can adopt reverse logistics by force or white choice but they all have to make a decision
whether to perform all the functions themselves as well as outsource to a third party. All
manufacturers have different choices including finding a third-party logistics partner and
provider with them, developing a personal Reverse logistics system, or doing nothing with
that. This shows that the reverse logistics Outsourcing has been highly explored from
operational and strategic perspectives in different sectors. The decision to outsource reverse
Logistic and the selection of the third-party reverse logistics service providers were
frequently discussed in Literature as well as several mathematical and analytical were applied
to the decision-making (Ritola et al. 2022). Also, most of the research provided an
information about reverse logistics activities' Outsourcing part, transportation, and primarily
collection. No comprehensive Framework was in Outsourcing was found for the decision-
making regarding remanufacturing, repair, recycling, reuse, or product acquisition activities
as well as the situations under which all the activities should be outsourced. furthermore, it
was observed that there is not a single study that analyzed Outsourcing reverse logistics
function's negative impact on the performance. Therefore, the options of joint Association
formation was properly mentioned in some of the studies, but this outsourcing option is rarely
taken in the decision-making of reverse logistic.

4.4. Reverse Logistic Networks from the perspective of secondary market

The network of reverse Logistic a basically designed for the strategic decision which includes
different facilities, locations, and areas to be properly covered, as well as their size or
capacity. Networks of RL that are recycled, rebuilt, repaired, and reused, are modeled in the
past. Solution methodologies are used by the last researchers which include stochastic and
deterministic modeling (nonlinear/linear, queuing, gold programming, mixed integers
models), and heuristic methods (simulated annealing, Tabu-search, genetic algorithm). Toca
stick modeling is being used frequently to deal with all uncertainties (Abdel-Basset et al.
2021). Therefore, there is a big opportunity to investigate some other opportunities, such as
chaos theory, to deal with all uncertainties. Also, this research indicates that the mixed
integer programming is the most general method that is used by different researchers. These
programming models of mixed integer range from a single product (simple) non-capacitated
models to the complex multi-objective models or different products capacitated models.

4.5 Disposition Decision

Different strategic and operation models of decision-making have been properly developed
for selecting the best temperament or disposition option. The disposition option such as
donation, balance inventory, resale, returns to the stock, return to the supplier or
manufacturer, Re-manufacture, recycle, and reuse are properly discussed and related to the
closed-loop supply chain management in a literature. The settlement options for the particular
industry in a different scenario of the business are yet to be highly explored. Also, there is a
requirement to develop a comprehensive model of strategic decision to identify all
circumstances under which every single needle should be selected. Also, there are some
studies on the temperament or disposition decisions as well as this gives great potential for
the research in a coming future.

4.6 Numerical Investigation result with assumptions

Some assumptions that mainly rule the closed loop supplier chain are as follows:

 There is not a single requirement to this assemble a product to recreate it.

 Demand per unit of time (period of 3 months) for both the A and B Class Products is
stable.
 Demand is properly satisfied by an inventory of re-manufactured and new products.
 Used items are either disposed of or collected uncontrollably.
 Collected products are inspected, then remanufactured as well as disposed of/consumed,
or utilized in the secondary market (Chen et al. 2021).

Figure 1: Uncontrollable Disposal Unit cost

(SOURCE: Self-Cited)

The model's cost structure includes inspection and collection costs, uncontrollable disposal
costs, incineration/disposal costs, re-manufacturing costs, and production costs. The last
could be a fine imposed by environmental law. To model the cost of re-manufacturing
resume that the scheduled investment will result in an increase in the current capacity of re-
manufacturing. The cost of re-manufacturing is assumed to be constant up to a current
capacity. The largest re-manufacturing rates cost is shown in the below figure.

Figure 2: Cost of Unit Remanufacturing

(SOURCE: Self-Cited)

We have described in the Image 5 that there are 2 points where the rule of decision must be
properly set in the model. The main criteria of these decisions are primarily economical.
Based on alternative options' cost, the collector or user has to properly decide that what is
profitable to him. To model the procedure of decision making we utilized a sigmoid function:

Uncrollable disposal % =

Collected products to be re-manufactured % =

Where M and L are the control variables which express a normal cause alternative flows
difference for different cases. Particularly,

We examined the system under nine scenarios for a capability of re-manufacturing. They
have a capacity (current) equal to the demand of around 15%, which highly increases up to
50 percent in around 9 years. We also run the above scenarios of capacity for 7 levels of
penalty (expressed as the production cost percentage) and we have logged the cost and flow
dynamic change in a per time unit (Jin et al. 2021). All the simulations have run in the
environment of Powersim 2.5c.

The below figure shows some transient change in the flux upon applying a penalty. the
punishments to level are shown in the figure, the low level of penalty (5% of the cost of
production) and the high level of penalty (30%).

Figure 3: Flow Changes while Penalty applied

(SOURCE: Self-Cited)

Figure 4: Changes in Flows while Including Capacity of Remanufacturing

(SOURCE: Self-Cited)

In the scenarios, the major causes are the re-manufacturing and production costs. From the
below two figures, we can assume that the total cost which is increased because of an
imposition in penalty further increases whenever we include the capacity of re-manufacturing
because of the associated cost is higher because of an initial investment. Therefore, when the
re-manufacturing of a product reaches the last capacity then the cost of every item decreases.

Figure 5: Cost at the time of adding Remanufacturing period (penalty around 30%)

(SOURCE: Self-Cited)

Figure 5: Cost at the time of adding Remanufacturing period (penalty around 5%)

(SOURCE: Self-Cited)
CHAPTER – 5: RECOMMENDATION AND FUTURE
IMPLICATION
At first returns and now one of the biggest challenges of supply for all the companies in
today's time, the strategy of reverse logistics is important in maintaining the management
practices of healthy inventory as well as regulating expenses of operation. Secondly, a proper
understanding of the behavior of dynamic consumers is so much essential in comprehending
the behavior of purchasing consumers as well as increasing the satisfaction of consumers.
Meaningful insights may be gained from every return and support to improve the sale in the
coming future. Closed-loop supply chain management in the return practices plays a vital role
in creating an overall procedure of reverse logistics.

The company has all of its consumers during the process of Return can easily prove to be the
competitive differentiator (Hosseini-Motlagh et al. 2020). This impacts the bottom line of a
company in the UK. So, here are some strategies to put the effect of the process of reverse
Logistic into a place after looking at the closed loop supply chain logistics, which are as
follows:

 Have a transparent system of monitoring in place in the process of selling.

 Implement the return policies very clearly to attract customers.
 Always invest in the correct Technology to incorporate in the supply chain management
to make the smoother returns policy.
 Add the label of returning to the packaging of the product.

5.1 A Way Ahead

There are different factors of reverse logistics that may be kept in a mind at the time
considering the strategy of reverse Logistics.

Collaboration of Supplier - There must be a fair agreement between sellers, suppliers, and
merchants on the return product's ownership. This will support great estimating of the
supplier agreement's total cost. The responsibility and accountability sharing will take to
seamless work and support to reduce the risk at a particular level.

Policies of Return - As mentioned earlier the online Shoppers around 89% decide on the
purchasing place based on the policy of Return. To obtain a very competitive advantage the
written policies of the company must be consumer-focused. Also, time is an important factor
here. Therefore, the time of return depends on the decisions of the industry the company is
operating in. In the apparel industry, the period of Return is very short most consumers
prefer, free delivery of returns. However, this is not a very standard or great practice. The
policy which highlights consumers keeps all consumers at a Centre while synergizing with
the capabilities and resources of the company will give the best service.

Option of Returning - Instead of viewing returns as a failed or bad sale, the organization
should view at as a great opportunity, a second chance to reconnect with all the consumers.
According to the overall research, around 96% of customers will re-purchase with the retail
completely based on the experience of goods or product return (Wu et al. 2020). 55% of the
consumers who are aged between 21 to 29 years prefer in-store returns, as well as 48% of
them, agree that online return is a hassle. This may mean that the individuals immediately
want their credit or money instead of waiting for around 10 to 14 days for the process of
Banking for returning.

Purchasing online as well as writing in a store is a great method to get a refund as it is going
to be a win-win for customers and retailers. For all consumers, this means that instant credit
or funds will be available, while for all the companies it is a huge opportunity to create more
sales and the time of consumer is available in a store in the market.

Logistic process - Any kind of return which is in transit is a huge loss for an organization,
the longer the product is not properly available for sale, the greater the loss in the product
value. A faster speed of operation will be so much beneficial for the consumer as well as the
company. Faster operations will also support the consumers in achieving the greatest
satisfaction resulting in repeat purchases from similar customers. along with this, the
company should properly focus on the below code areas to properly built a system of strong
operations to save money and time.

Return Analytics - Reverse logistics is a source containing several data. Therefore if the
centralized database related to the return practices is a belt for reverse logistics in the UK it
may be utilized to analyze all reasons for the returns. Also, the entire data can support making
the decision related to management in determining which items are products that will achieve
high sales in the company with low return rates. Data on the number and geographies of the
return can support optimizing all the roots as well as support saving cost and time. The
techniques of predictive analysis can support to ensure the quality and performance as well as
built and efficient strategies applied chain for the overall company (Asl-Najafi and Yaghoubi
2021).

Merchandise disposal - Once a return is received, the product or item can rarely be sold at
full price. The product value decreases when the consumers have the goods as well as
sometimes because of the condition of merchandise or packaging. The company also must
determine whether it should reinvest properly Its money and time to return the product or
item at its full price or simply dispose of it. Therefore, most of the time all the merchandise
may be returned or resale all the refurbishment takes some time as well as cost. To minimize
all the value loss when the product is items with the consumer they must be some other
standards and norms for the process of Return.
CHAPTER – 6: CONCLUSION
This research meaning analysis of the practices of Return In the UK with the network of
reverse Logistics using the SD methodology. It is so much important to properly understand
the importance and necessity of ecological and economical profits as well as the channel of
Reverse logistics from it. Therefore, we also believe that in the coming year all the industries
that wish to properly come up with huge competition and the legislations of the environment
should properly operate the new section in the production of the channel of Reverse
Logistics.

In short, the legislation implementation, environmental concern, sustainable competitiveness,

corporate imaging, and economical benefits are not only posing forms to adopt the practices
of reverse logistics but also to build them very effectively and efficiently. This research is
focused on all the important issues and the role of closed-loop supply chain management or
backward logistics.

This research tries to properly present the literature review in a comprehensive way of the
different researchers in Reverse Logistics and Closed-Loop Supply Chain management
regarding a huge number of publications related to the issues in CLSC and Reverse Logistics.
On the other side, a comprehensive view and mutual interrelations in selecting several issues
suggest different future directions in the opportunities and classifications of problems.

This research includes the proper conduction of the qualitative report related to the reverse
Logistic in the UK. This research is being properly analyzed in a way to enable it to meet all
the demands of the topic. Along with this literature review has provided the theories
perspective on the research topic (Yu et al. 2020). This overall research has concluded that
different researchers have provided the information and data related to the practices of the
Return process in the UK along with the management of reverse logistics. It shows that
reverse Logistic plays a vital role in coordinating the decision of pricing in return products
which includes re-manufacturing and reusing products. Along with this balancing, many
concerns between the hair stick and exact solution methodology as well as trying to properly
break the current rules which are hidden in the tools solutions are discussed in the material
solution as well as their opportunities. Integration of the decision making different levels and
defining the variables of new decisions are the future opportunities and chances for the
category of decision variables. Paying some attention to the multi-objective issues, utilizing
some new approaches, as well as applying more environmental and sustainable object is can
be a great direction for the future in multiple and single-object issues.

This overall research has been done in the secondary form and qualitative research method.
In this research different articles and journals are included to get proper data which gives
great knowledge and understanding related to the return practices in the UK along with the
reverse Logistics. So, this research describes all the aims and objectives of the research as
well as gives a proper answer to the questions. Along with this, it provides a piece of great
knowledge and understanding related to the topic and gives some solutions to the research
problems.
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