Impleamentation of reverse logistics in a firm. The case of Danone

Abstract

Over the past decades, we have witnessed unprecedented growth in demand for resources, due to rapid industrialization of emerging economies and continued high use of resources in developed countries. Linking economic development to the consumption of raw materials, the basis of the linear economy, represents an unsustainable model for the economy, society and the environment (Dominguez, 2014). According to the United Nations (UN, 2013) the negative impact is expected to increase, estimating an increase in the world population of 8.6 billion by 2030. In addition, due to the increase in the standard of living in developing countries, the middle class will reach 3 billion, which will consolidate the increase in consumption, generating waste at a speed that is undesirable for global sustainability. In addition, it is necessary to mention the environmental impact associated with the production and consumption model of the linear economy. Not only does the linear economy present risks at the level of resource scarcity, but the growing generation of waste that accompanies it, which rapidly contaminates terrestrial and marine ecosystems, is particularly alarming. The main environmental problem associated with the linear economy is that it is initially making use of non-renewable resources for its activities, but these resources are being depleted, causing major climate change and the loss of biodiversity (Ellen MacArthur Foundation, 2014) . It is in this context that the circular economy appears, since it represents an opportunity to change our production and consumption model, as well as to significantly impact the achievement of the Sustainable Development Goals (UN, 2015). This is thanks to the fact that this new production model makes it possible to improve the efficiency of resource use and works to minimise the generation of waste and reintroduce it back into the production cycle thanks to a regenerative vision based on innovation, collaboration and awareness (Ellen MacArthur Foundation, 2014). The difference between linear and circular economy is key to the environment. Reverse logistics is a key element in the circular economy, a new type of logistics that ensures the recovery of materials already used. Although there are many companies from different sectors that are already leading the transition to a circular economy and applying reverse logistics, there is still a long way to go to achieve a circular ecosystem (Ruiz, 2018). Despite the benefits, the application of this model can be slowed down or even rejected by companies, as it requires several changes that companies are not always prepared to face. Taking into account the previous aspects, insofar as this can contribute to facilitating the development of business models based on the circular economy, the objective of this work are to deepen into the knowledge of reverse logistics and the barriers that companies usually face when it comes to implementing it correctly in their production processes and to illustrate how a specific firm develops its reverse logistics. In order to achieve these objectives, in the first part of the work we will delve into the concept of reverse logistics and examine the dimensions or elements that make up reverse logistics in the company. Next, we will review the possible barriers that companies have to face when incorporating reverse logistics. In the second part of the work, we complement this theoretical review with a case study in which we describe how a company with a strong commitment towards sustainability issues implements its reverse logistics. Specifically, the work analyses the process and environmental initiatives carried out by the company Danone in its reverse logistics.