Thesis Research Conducted
“Evaluating the impact of sustainable return logistics through E-commerce
business in Karachi”
Research Project / Thesis submitted
By
(Syed Zain Ahmed)
-)
To
To Faculty of Business Administration
In partial fulfilment of the requirement for the Degree
of MASTER OF BUSINESS ADMINISTRATION
In
[Supply Chain Management]
[Sir Manzoor Isran]
Shaheed Zulfikar Ali Bhutto Institute of Science and
Technology SZABIST, Karachi.
Dated: June 02, 2022.
i
Appendix A1 -ORIGINAL LITERACY WORK DECLARATION FORM
SZABIST, ORIGINAL LITERACY WORK DECLARATION
STUDENT NAME: SYED ZAIN
AHMED REGISTRATION:-
NAME OF DEGREE: MBAE36-D
TITLE OF PROJECT REPORT/THESIS: “Evaluating the impact of sustainable
return logistics through E-commerce business in Karachi”
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and the title of the Work and its authorship have been acknowledged in this Work;
I do not have any actual knowledge nor do I ought reasonably to know that the
making of this work constitutes an infringement of any copyright work;
ii
4. I hereby assign all and every right in the copyright to this Work to the Shaheed
Zulfikar Ali Bhutto Institute of Science and Technology (SZABIST) of who
henceforth shall be owner of the copyright in this Work and that any reproduction
or use in any form or by any means whatsoever is prohibited without the written
consent of (SZABIST) having been first had and obtained;
5. I am fully aware that if in the course of making this work I have infringed any
copyright whether intentionally or otherwise, I may be subject to legal action or
any other action as may be determined by SZABIST.
Candidate Signature
Date
iii
Appendix A2 – CHECKLIST FOR FORMAT OF THESIS
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v
Appendix A3 - PLAGIARISM Verification
Title:
“Evaluating the impact of sustainable return
logistics through E-commerce business in
Karachi”
Total Page:
Student Name: Syed Zain Ahmed Registration
ID:- Supervisor: Sir Manzoor Isran
Program: MBA
Faculty of Management Sciences
This is to report that the above thesis was scanned for similarity detection.
Process and outcome is given below. (Plagiarism maximum percentage
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vi
Supervisor-Student Meeting Record Form
Semester: Spring 2022
Program: M B A
Student Name: SYED ZAIN AHMED
Student ID:-
Thesis Title: “Evaluating the impact of sustainable return logistics through E-commerce
business in Karachi”
Supervisor Name: Sir Manzoor Isran
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viii
Meeting 4
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xi
Abstract
The main purpose of this study is to conduct the representation of
ecommerce business to investigate the impact of sustainable return logistics on
ecommerce business, data was pick from previous research papers. Quantitative
method was chosen and responses was collected from sample of 100 surveyor while
taking help from online surveys and questionnaire was adopted from previous
research paper. I have tested my hypothesis with regression techniques with the help
of smart pls software. The result findings tells that the sustainable return logistics
have positive impact on all attributes of dimensions of return logistics, namely
return policy, return avoidance, gatekeeping and disposition. The mediating
variable is ecommerce.
Key Words include:
Return Logistics, E-commerce, Return Policy, Return Avoidance, Gatekeeping and
Disposition
xii
ACKNOWLEDGEMENT
The research was supposed under the guidelines by supervisor Sir Manzoor
Isran. I would like to thank to my supervisor who provided us the opportunity to
conduct research. We thank our colleagues for support & amp; assist for remarks
that greatly improved my document. I want to manifest my credit to Sir Manzoor
Isran for sharing their pearls of sagacity with me, during the course of this research.
I am very tremendously thankful to the above-mentioned persons for their
comments on an earlier version of the document, although any errors which will
occur it is our own and should not embarrass the reputation of this esteemed
persons.
xiii
Table of Contents
Appendix A1 -ORIGINAL LITERACY WORK DECLARATION FORM ............... ii
Appendix A2 – CHECKLIST FOR FORMAT OF THESIS ...................................... iv
Appendix A3 - PLAGIARISM Verification ................................................................ vi
Supervisor-Student Meeting Record Form ................................................................ vii
Abstract ....................................................................................................................... xii
ACKNOWLEDGEMENT.......................................................................................... xiii
CHAPTER 1: INTRODUCTION ............................................................................... 16
1.0
Key word include ............................................................................................... 16
1.1
History and Background ................................................................................... 16
CHAPTER: 2 LITERATURE REVIEW.................................................................... 23
2.1
Sustainable Reverse Logistics: .......................................................................... 23
2.2 Reverse Logistics in E-commerce: ........................................................................ 23
2.3 Return Logistics Management .............................................................................. 24
2.4 Return logistics dimensions ................................................................................... 25
2.4.1 Return Policy: ..................................................................................................... 25
2.4.2 Return avoidance: ............................................................................................... 26
2.4.3 Gatekeeping: ....................................................................................................... 26
2.4.4 Disposition: ......................................................................................................... 27
2.5 Trend analysis of reverse logistics:........................................................................ 28
2.6 Hypothesis: ............................................................................................................ 31
2.7 Conceptual Framework: ........................................................................................ 32
CHAPTER: 3 METHODOLOGIES .......................................................................... 33
Variables: .................................................................................................................... 34
Dependent variable: .................................................................................................... 34
CHAPTER: 4 RESULTS ............................................................................................ 36
4.0
Frequencies: ....................................................................................................... 36
Table 4.1 ...................................................................................................................... 36
Table 4.2 ...................................................................................................................... 37
Table 4.3 ...................................................................................................................... 37
4.1
Reliability Testing: ............................................................................................ 38
4.2 Correlation: ........................................................................................................... 38
4.3
Regression: ......................................................................................................... 39
4.4 Summary of Hypothesis ........................................................................................ 41
CHAPTER: 5 CONCLUSIONS .................................................................................. 42
xiv
5.0
Discussion: ......................................................................................................... 42
6.0
Conclusion: ........................................................................................................ 44
7.0 Limitation and Future recommendations: ............................................................ 44
8.0
References: ......................................................................................................... 45
APPENDIX .................................................................................................................. 48
Appendix A2: PLAGIARISM REPORT ................................................................... 49
Appendix A3 Questionnaire ........................................................................................ 54
Appendix A4 SPSS DATA SHEET ............................................................................. 56
Variable View: ............................................................................................................. 56
Data View: ................................................................................................................... 57
xv
CHAPTER 1: INTRODUCTION
1.0 Key word include
•
E-commerce
•
Return logistics
•
Return Policy
•
Return Avoidance
•
Disposition
•
Gatekeeping
1.1 History and Background
In this paper we study on the report of the findings of the outcomes for supply
chain management settlement and strategies of online business operation. The online
business is defined as the free online platform which is available for free
communication for the use of information exchange, commercial use of transactions
and sharing of knowledge between the organizations.
The main objective of research is to conduct on the internet as way of
communication channel have been developed for business process and the decision
taken from the management have created much in its infancy due to the lead time
involved in the operations advertise on the factual analyses. The field which is formed
from inter-organizational system is known as electronic data interchange (EDI)
(Berisha-Namani, 2009). The main reason for conducting - this research is to study
and archive the strategic developments from medium to long range plans in the supply
16
chain management for organization across the diversified range of industries.
We often take an opinion regarding the unusual nature of warehouse which is
used for the purpose of ecommerce most generally used by the issuer of modern
advanced technological equipment and producer of such solutions. It envisages that
to build the modern facility with modern technologies installed in it especially in the
case of order picking. If we talk about in many cases the difference between the
basic levels of warehouse serving the automobile spare parts markets and the
warehouse which have the full control to manage the retail orders which are placed
through electronic and modern gadgets.
The e-commerce is defined as the mode of online buying or selling of the
products through the internet. The market segments of ecommerce is divided into
four major components like-wise through computers, tablets, smartphones and other
small hand-held devices. We can buy several products through online mode like as
buying the airline tickets, buying the smartphones, buying books, kitchen
accessories, we can also buy the financial services like investing in stock, mutual
fund and accessing the online banking portal. The role of internet it allows the hasty
exchange of the instructions and availability of predictable data, easy role of
accessing and coordinating among Trading to Trading (B2B) and Investing in stock,
mutual funds and accessing the online banking portal. E-commerce is basically the
online trading platform. The direct route façade the different set of opinion and
challenges from the current retail network. These two networks are different from
consumer types, operations of order achievement, cost arrangements, profit
augmentations, priority in circulation, logistical specification, intention of service
quality, degree of market penetration, approaching the demand/supply instructions,
17
and return of product policies. (Johnson & Whang, 2002).
The e business competencies of the firm to use the internet technologies to share the
instruction, -develop the instructions correspondent the activities in order to facilitate the
interaction with the supplier and customers. The traditional modes of communication are the
phone and fax these two modes are still used by most of the companies in order to do the
business with the supplier and the customers. As the world is changing the new and modern
techniques are taking place the companies are shifting towards ecommerce and with modern
internet technologies in their supply chain. (Devaraj et al., 2007).
If we talk about the crucial policy that is approaching over supply chain controller is
the issue of sustainability of the organization, firms are now being held culpable for the
environmental impact and communal performance of the ecosystem they create. This burden
is not only from the governmental rules and regulations. (Dutta et al., 2020)
It is divided into following segment.
Sustainability:
If we interlink with the efficiency of the supply chain. The fiscal concept is always
available before the approach sustainability and this is what the reason most of the companies
have been focusing on. Looking for the advantage in the situation of supply is actually the cut
back the costs
1.0 Problem Statement:
Evaluating the impact of sustainable return logistics through e-commerce
business.
1.1 Research Question:
What is the impact of return policy on ecommerce?
What is the impact of return avoidance on ecommerce?
What is the impact of gatekeeping on ecommerce?
18
What is the impact of disposition on ecommerce?
What is the impact of ecommerce on sustainable return logistics
management?
What is the impact of gatekeeping on return logistics?
1.2 Research Objective:
To find out the impact of return policy on ecommerce business.
To find out the impact of return avoidance on ecommerce business.
To find out the impact of gatekeeping on ecommerce business.
To find out the impact of disposition on ecommerce business.
To find out the impact of ecommerce on sustainable return logistics.
To find out the impact of gatekeeping on return logistics.
19
1.3 Justification:
I have justified my statement from the following three points:
Different e business industry which are operating their functions in Pakistan
they are working to improve their return logistics system through e
commerce business.
Do companies are maintaining their return logistics strong enough to handle
any types of return.
This research will give direct benefit to the companies such as: trust level of
customers will increase, the brand image of the product will become
positive, and it will help to increase the market penetration.
1.4 Limitations:
I have conducted this research only on ecommerce companies and working
on some dimensions of reverse logistics like return policy, disposition, return
avoidance, and gatekeeping my research is only based in Karachi. I have limited my
target audience and constraint my audience due to limited in resources.
1.5 Definition of Key Words:
E-commerce:
The term ecommerce is basically depending on the trade model and it boost
in decades. The term ecommerce is defined as the corresponding the transaction
which take place over the internet constitutional using automated technology. It
associate transaction such procuring, merchandising, change belongings, dawning,
and instruction. The component of ecommerce is that opportunity of 24/7 and
craving of operational practices. Ecommerce is basically categorized into two
segments, trade to trade (B2B) and Trade to patron (BSC). In the last two period it
20
has been adapted towards conventional retailing towards online retailing. (Saldic,
2020).
Return Logistics Management:
Return logistics management is defined as the procedure which are linked
with the return, preservation, repair, dismantling, repossession of the product and
their parts. It combines with the repeal of the functioning products through the
supply chain in order to get the maximum amount. The author said that it is the
element of the supply chain that included the return, reverse logistics, gatekeeping
and avoidance. Rebound management is basically branched into two character
strategic and operational fundamentals. (Saldic, 2020)
Reverse Logistics:
The reverse logistics is basically defined as returning the product from
downstream towards upstream which were basically ordered online channel platform
from customer to vendors. If we talk about the process flow of reverse logistics of
ecommerce it has a completely diverse economics obliged an absolutely different
development solution. The mechanism the retailer is following forward and
downward progress of products approaching the customer, merchant in order to
achieve the economies of scale, projection related to the commodity dimensions and
the quantities more perfectly because of the estimated requirement. (Żuchowski,
2020). To face the environmental issues and it helps to handle the product around its
life cycle, companies revolve the reverse logistics a process of planning requisition
and control adequate flow of products, materials and information from utilization
point to origin point of incomes and reusable. Supply chain is known as closed loop
acceptation supply chain because it focuses on application of supply chain from
material manufacturing till material expire (Alnoor et al., 2019). The reverse logistics
21
assistance includes commodity delivery and betterment so that it can be depleted,
remodeled reindustrialized, recycled or biased. Reverse logistics movement are very
important because it can help to stop decomposition and sustain energy. Therefore,
they may lead to resilience and green manufacturing, nowadays, organization tend to
shift combination from product earning to logistics and reverse supply chain of import
of
supply
chain
(Alnoor
et
al.,
2019)
22
CHAPTER: 2 LITERATURE REVIEW
2.1 Sustainable Reverse Logistics:
A compelling value of sustainable supply chain research has been assisted
as long as various sustainability symbol related economic condition for legislative
agreement making in supply chain management & application management in
particular. If we compare the comprehensive research with environmental, social
especially economic condition is considered as the main critical path of sustainable
reverse logistics. (Bal & Satoglu, 2018) An author proposed a model of multi
objective it aims to reduce the basic material and the transportation cost and goal is
to reduce the radiation of CO2 gas. This study is basically helps out the companies
in order to gain the profit, better developing customer responsiveness time and
quality standard. The author has developed the return balanced packaging model to
reduce and sarcastic the cost and efficiently using of resources. There are two types
of inventories, rebounded inventory, serviceable inventory was taken into
examination. Three integrities were conferred with the rebound products and
reproduction was carried on the first detached to amend the cost function. Another
objective was to amend the fill rate for example division of demand that could be
contented from hand. The numerous goals treated is to reduce the actual current
cost, reducing the environmental impacts and better social responsibility. (Dutta et
al., 2020)
2.2 Reverse Logistics in E-commerce:
The ecommerce is basically authentic as allocation of business data,
allegation of business communication of managing business parleying, settling and
accomplishing compliance by means of publicity platforms, through the source of
internet, in order to achieve business proceedings. (Saldic, 2020) The author says
23
that it has a relationship between reverse logistics and information mechanics to
consider all of this thing in the retrieve of E-commerce operation. RL in e-commerce
over the past years argued that the benevolent return policy.
Boost the revenue but at the carbon time would increase over cost due to
product return. The author has developed an earning maximization figure in order to
gain the excellent approach for price and return method. According to the author
Ramanathan in (2011) concluded through factual analysis that manipulation of
commodity return playa an important factor in improvement in customer loyalty for
both low exposure products and high exposure products but not for commodity that
display medium altitude of risk. The author which has explained and provide the
recommendation and expert solutions to collect from the city-wide e-commerce
reverse flows. This explanation tries to provide the advantage of addition of storing
capacity and consistent flexibility of taxis to compile the returned products from the
purchaser and hand over the same to the retailer. In the congregation authority the
options are available to the retailers to outsource this business on the other hand
taxi driver will get a chance to earn more payment by doing little bit more exercise.
If we discuss the reverse logistics model network design with e commerce
organization to collect and dismantle the return products. (Das et al., 2020)
2.3 Return Logistics Management
If we define reverse logistics, it is mandatory to determine and make it
clarify what return is actually. The most important thing is to generate a
comprehensive picture of how returns are link with reverse logistics. As describing
the definition of supply chain assembly, it shapes those returns are the activity
correlated with returning or obtaining the returned products for any reason. These
operations expand into post-delivery customer carry. The author relates that the
24
interpretate the return mainly targets on the natural flow of products. It is basically
not compelling management activities. (Saldic, 2020).
2.4 Return logistics dimensions
This study tells us the effect of four dimensions of return logistics
management.
2.4.1 Return Policy:
The objective of a company come back management generally lay the
authority for the return policy. Return policies determine to facilitate to help the
company to manage its return management goals, or slightly help them on the path. It
states that return policy can be enforced in many ways, according to the author it
says that it is the most powerful element to better the company brand identity,
increase the progress of firm’s revenue, customer faith. Return policy could build up
the customer trust level towards the company’s commitment by giving them
multiple return opportunity as giving them free return policy by returning a
product at them.
Physical store. By allowing private customers a return opportunity, that will
curtail the customer risk of the buying since they can reconsider the product if it does
not match. If we define return approach regulate how field access the return. In
online business the return approach is divided into category, lenient or restrictive
return approach. A lenient returns approach is where the vendor bears the cost of
return. A lenient return approach would devote to boost sale and bulkier number of
volume returns.
25
2.4.2 Return avoidance:
The meaning of return avoidance is to develop and transfer of the product in
an appearance such that demand are minimized. It is the crucial step of return
management growth and offering to separate between reverse logistics and
conventional way of return. The author has defined some of the ways of return
avoidance. The initial step is to developing the product quality, and the second
footfall is exceptional advisement respecting how to manage the returned products.
If we look into the matter of ecommerce aspect, it commits reducing the customer
imperil of buying a product. Let’s consider an example of cloth business it has many
different SKU’s and many different sizes. If the seller is persistent in their sizes, that
will create difficulties for the customer and they will return the products. The main
role of return management is to accommodate the sellers through proper briefing, to
make sure about the main role in the avoidance of return.
2.4.3 Gatekeeping:
Gatekeeping is basically known as scanning of defective and baseless
returned commodity at the access point into the reverse logistics. Excellent
gatekeeping is the initial important factor in making the whole reverse flow
convenient and profitable. In most of the companies at their return policies are so
much indulgent consumers contribute their advantages. Most of the time customers
do not read the whole instructions about the return policies which creates a lot of
trouble for the retailers and online sellers and direct create a trouble to the
manufacturer. A good gatekeeping operation can help the producer in keeping this
as low as possible. (Reddy & Audo, n.d.) Gatekeeping is the organization of both
return application and the returned commodity. The main function of gatekeeping is
26
structuring the products, where it is decisive of a product is adequate as a return or
not. It also associates with the improvement of return integrity, that defines which
type of return are acceptable. The essential function of gatekeeping is to establish that
only certain type products should be returned, in a definitive point in the return
practice. The exertion of gatekeeping usually associates with an alliance of action
with the other factors in the supply chain. By having gatekeeping furnished in the
specific point of entry, it could help us in reducing the un-wanted costs. By not
indulgent unwarranted items to enter the return movement.
2.4.4 Disposition:
The meaning of disposition is to take the decision how and what to perform
with the returned product. Disposition associates with the action such as reselling
through inferior markets, recycle, reproduce or either transfer to dispose of. It
conceives with a fundamental instruction for the returned items. It is crucial step to
establish mechanism for disposition option astride the supply chain and from other
attitude of the supply chain. The condition should be customer representative
management (CRM), product improvement, commercializing the product, and
building the vendor relationship.
Return logistics management is a main factor to handle the product returns.
A clear picture of return behavior it will help to decrease the number of returns.
Precautionary amplification such as return avoidance and gatekeeping commitment
to an adequate return action, minimizing the cost and future return.
27
2.5 Trend analysis of reverse logistics:
Discussing the trend analysis of reverse logistics of the author (Reddy & Audo, n.d.).
The background of the study is that to find out the basic trends of reverse
logistics. It provides an idea of different researchers and different freight experts have
defined the reverse logistics.
This research have covered the basic activities of
reverse logistics and it tells how these activities change the judgment that managers
have to make on a daily basis in their organization.
The main objective of conducting this research is to find out the conception of
reverse logistics and their main important aspects in manufacturing industry. This
study also tried to look into the environmental issues.
The main problem behind conducting this research is to find out how to define
reverse logistics, what are the main procedure involved in reverse logistics, what
companies are doing with the returned products, how the returns got affect with the
agreement made in accomplishment firms, how the environmental problems affect the
reverse logistics. The method which was used to conduct the responses they have
standardized the questionnaire. They have adopted the questionnaire to get the
number of responses in order to accomplish the objectives of the research.
Understanding the idea and knowledge of the appellant what they know about
reverse logistics
The economical factor and customer satisfaction created an impact of returns
28
in previous years.
Getting an idea about the thinking of public regarding return policies.
The quick decision taken in order to maintain company environmental
friendly.
The result which were get from survey questionnaire about getting an idea and
concept of reverse logistics as appreciated by the manufacturers and logistics experts
working in the organization. In this category of the paper an endeavor has been made
to begin the answers given defendant in an appreciable form, is to provide an idea of
their approach of the concept of reverse logistics. The survey respondent include 40
people in the manufacturing and supply chain distribution of about 20 companies
were approach for the survey. In this section the feedback given by the competition to
the inquiry have been considered in an accurate manner. The investigation is also
based on the conference with the member that were assisted after the survey was
done. Also an attack to correlate the competition responses to the background has
been made to accept the thoughts of the appellant on the topic.
Discussing the trend analysis of Disposition decision in reverse logistics by using
AHP-Fuzzy TOPSIS Approach by the author (Authors, 2016)
The background of the study is that by growing the concerned anxious for the
environment, constitution and corporate social responsibility has heightened the
interest of researcher professional in reverse flows is being sanctioned by the
professional and institute from across the board the research areas. According to the
study some of the companies like Hp, Phillips, and Dell have adopted and practiced
the reverse logistics in their business in order to gain socio economic advantage over
29
their competition.
The author have defined the procedure of reverse logistics it is the stage when
the companies plan, implement and provide the authority to adequate the cost
effective movement of raw materials, work in process of inventory, finished goods
and linked with information from point of expenditure to the point of influence for the
determination of recapturing or fabricating value.
The main purpose of this conducting research is to select the best reverse
logistics disposition substitute. The multiple of criteria of decision making techniques
are used in which resolution makers assess the variation of options was provided
under the given position of criteria and then they have selected the best technique by
utilizing the MCDM. The procedure of data collection is considered o 3 important
parts including different, criteria and the load of relative significance.
The conclusion of the study is that the quick depletion of assets,
environmental distress and governmental directive results in both insistence and
drivers for the organization to apply the reverse logistics. The reverse logistics is the
procedure of collecting, inspecting and sorting of disposition, reusing, rebuild recycle
the products from the customers to the producer for controlling the economies of scale
and to protect the environment and to gain socio economic benefit. The disposition of
returned product is very important for obtaining the sake from the point of reverse
logistics, since we have also noticed that economic criteria are also linked with in the
study, the disposition strategy must consider as an important task for the organization.
30
2.6 Hypothesis:
H1. There is a positive impact of return policy
on ecommerce.
H2. There is a positive impact of disposition on
ecommerce.
H3. There is a positive impact of gatekeeping on
return logistics.
H4. There is a positive impact of return
avoidance on ecommerce.
H5. There is a positive impact of ecommerce on
return logistics.
H6. There is a positive impact of gatekeeping on
ecommerce.
31
2.7 Conceptual Framework:
.
32
CHAPTER: 3 METHODOLOGIES
3.0 Research Design:
This study is based on general buyers in Karachi, for conveying out this
study, respondents from different areas were selected on non-random based. This
study is quantitative in nature it complicated the use of survey. More than 100
questionnaires
were
circulated
and
all
the
questionnaire
were
usable.
Questionnaires were used for examination. The data was analyzed with regression
approach on SPSS software. The questionnaire was adopted from Questionnaire
adopted from following: Dhananjaya Reddy, Vida DAVIDAVIČIENĖ*, Mohamad
AL MAJZOUB21 April 2021, LINCT Lin, C Shuang-Shii -, 2018, Skrifter från
Högskolan i Borås December 2010
3.1 Sampling Design:
I have decided that my research survey’s will be conducted in Karachi,
Pakistan for 100 peoples for both including male and females in the age bracket
between 25-30, 30-35, 40-50, 50-55.
3.2 Instruments for Data Collection:
The study was based on self-administrated survey through this we were
conducting the research. The instrument of data collection which I have chosen for
research surveys is that I have adopted a closed ended questionnaire from the
previous research articles and papers. It defines that my questionnaire was closed
ended in which the respondent doesn’t have the choice to provide his/her opinion, it
defines that questionnaire was based on the 5-point Liker scale which have the
following opinion.
33
Strongly Agree
Strongly Disagree
Agree
Disagree
Neutral
There will be 3 parts of the questionnaire part A part B and part C. Section A
contains demographic factors like age, gender, occupation, and academic
information etc. Section B contains e commerce in reverse logistics management
and the five dimensions of return logistics management. (Return policy, return
avoidance, disposition and gatekeeping)
Variables:
Dependent variable:
Sustainable Return Logistics Management
In-Dependent variable:
Return Policy
Return Avoidance
Gatekeeping
Disposition
Mediating Variable:
Ecommerce
34
3.3 Statistical Technique:
The test which I will perform for checking the result Regression,
Correlation, Reliability Test, Frequencies statistics.
35
CHAPTER: 4 RESULTS
4.0 Frequencies:
Frequencies variables include Gender, Age, and Qualification.
Table 4.1
The above table shows that the respondent are those peoples they are in
between the ages of 25 to 30. They create 54.0 percent of total sample collected and
made a cumulative percent of 54.0 and they are approx. 54 in number out of 100
peoples. Second largest group 30 to 35 years of age. They are 14 in numbers and they
made a cumulative percent of 14.0 percent. Peoples falling in the age bracket of 40
to 45 years are 12 in numbers they made 11.0 percent and 91.0 cumulative
percentage. The least portion in data sample consists of 50 to 55 are in 9 in numbers
constituting 9.0 percent of total sample located at 100.0 percentage.
36
Table 4.2
Table 4.2 represents the distribution of sample in terms of education. The
above chart tells us that our total represent that 48 were bachelor passed
representing 48.0 percent and 45 peoples were master passed representing 45.0
percent and making 93.0 cumulative percentage and 2 were masters and above
representing 5.0 percentage of total sample, making 95.0 cumulative percent, 5 are
from professional certification 5.0 percent to total sample.
Table 4.3
The above chart represents that distribution of sample in terms of gender.
The above data tells us that out 100 total sample, 74 were male representing 74.0
percent of total sample and there are 26 female respondent who made a contribution
of 26.0 percent of total sample making cumulative 100 percent.
37
4.1 Reliability Testing:
The result which I have gained through cronbach’s alpha 0.844 which
means that it is accepted because it is greater than 0.06.
4.2 Correlation:
Reverse
Ecomm
Return
Disposi
Gatekee Return
Logistics
erce
Policy
tion
ping
0.402**
.548**
0.049
0.280**
0.000
0.000
0.627
0.005
100
100
100
100
Ecomm
Pearson
erce
Correlation
.660**
Sig (2-tailed)
-
1
100
Avoidance
Since p-value of all the correlation is below .05 therefore we have enough
evidence to accept that there is a moderate to strong correlation between reverse
logistic, return policy, disposition, return avoidance and e-commerce, Except for
gatekeeping that has insignificant correlation with e-commerce, Correlation
indicates that if independent variable increases then the mediating variable ecommerce
also
increases
leading
to
increase
in
reverse
logistics.
38
4.3 Regression:
Original Sample
P values
Dis on Ecom
0.406
0.000
Ecom on RL
0.288
0.004
GK on Ecom
-0.032
0.699
GK on RL
0.335
0.002
RA on Ecom
0.276
0.004
RP on Ecom
0.279
0.003
39
Hypothesis 1: There is a significant impact of disposition on ecommerce Interpretation from the above table:
Since p-value is less than .05 therefore we have enough evidence to accept the
hypothesis that disposition impacts e-commerce by .406.
Hypothesis 2: there is a significant impact of Gate keeping on ecommerce Interpretation from the above table:
Since p-value is greater than .05 therefore we have enough evidence to reject the
hypothesis that gate keeping impacts e-commerce.
Hypothesis 3: there is a significant impact of return avoidance on ecommerce Interpretation from the above table:
Since p-value is less than .05 therefore we have enough evidence to accept the
hypothesis that return avoidance impacts e-commerce by .276.
Hypothesis 4: there is a significant impact of return policy on ecommerce Interpretation from the above table:
Since p-value is less than .05 therefore we have enough evidence to accept the
hypothesis that policy impacts e-commerce by the value of .279.
Hypothesis 5: there is a significant impact of e-commerce on
reverse logistic Interpretation from the above table:
Since p-value is less than .05 therefore we have enough evidence to accept the
hypothesis that e-commerce impacts return policy by the value of .288.
Modified Hypothesis 2: there is a significant impact of Gate keeping on reverse
logistic Interpretation from the above table:
Since p-value is less than .05 therefore we have enough evidence to accept the
40
hypothesis that gate keeping has a direct impact on reverse logistic with the value of
.335.
4.4 Summary of Hypothesis
S.NO
Hypothesis
Status
1
H1. There is a positive impact of return policy on ecommerce.
Accepted
2
H2. There is a positive impact of disposition on ecommerce.
Accepted
4
H3. There is a positive impact of return avoidance on ecommerce. Accepted
5
H4. There is a positive impact of ecommerce on return logistics.
Accepted
H6 There is a positive impact of gatekeeping on return logistics.
Accepted
H6 There is a positive impact of gatekeeping on ecommerce
Rejected
6
41
CHAPTER: 5 CONCLUSIONS
5.0 Discussion:
The main purpose of conducting this research is to find out the impact of
sustainable return logistics in ecommerce. Through this I have made an objectives
while conducting my research is to:
To find out the impact of return policy on ecommerce business.
To find out the impact of return avoidance on ecommerce business.
To find out the impact of gatekeeping on ecommerce business.
To find out the impact of disposition on ecommerce business.
To find out the impact of ecommerce on sustainable return logistics.
After performing test analysis, it states that the objectives which I have
defined to observe the impact on gatekeeping on ecommerce rejected because it
does not create a direct link with the variables of return logistics (gatekeeping) with
ecommerce due to gatekeeping is only done when the returned products came back
to their destination hubs or warehouse and proper barcoding and entry recorded in
the system that particular products have being added in the inventory. So I have
modified the test analysis, and link my independent variable with direct dependent
variable sustainable return logistics so the number 3 objective and hypothesis is
modified because it creates a significant relationship between gatekeeping on return
logistics. It basically has an impact on return logistics because the returned product
received in the warehouse enters only once gatekeeping is done and it reconciled
with the customer data that how many orders customers have returned physically
and how many orders enters the warehouse. The result which I have got are all
meaningful and have significant and correlated with each other. The importance of
42
results findings is that all my research is based on ecommerce platform so know a
day’s trend have been changing and shopping tradition is not taken place towards an
online platform so this is evolution and it needs to be studied more about the facts
and negative effect, how does the customers face an issue regarding purchasing
from an ecommerce platform and the necessity action the ecommerce industry has
to take against the return products.
After the research questionnaire that arise in the literature which are personal
interested to the author. The encouragement of the research has been for
exceptional understanding of the explanation of returns and the use of return
management in order to reduce the negative effect on the structure. Consistently the
unfavorable effect of return were send by decreasing the cost of returns handling by
economies of scale. The freedom in the economy of scale appear by integrate or
giving the contract to 3rd party for managing the handling of return products. Return
Management and prevention combined with increased analysis of internal activities
such as marketing grant the prevention of some return. This circumstances of return
avoidance presented by the author. Those which adopts a strategy to comprehend
the products they are converted into more likely to delight the customer needs, thus
it is a great advantage if we gain the market knowledge of distinctive of supply
chain potentiality.
Moreover, they will likely avoid the issues of under delivery and excess
delivery that are latent in the system with a uniform service delivery. While using
the one system that fits all order, delivery and return system technology never
collateral the minimum cost nor it helps to maximize the revenue or sales.
Delivering the products without empathetic the or performing in conformity with
the customer’s service demand, seemingly under delivers with possible returns or
43
lost sales, or the system excess delivery without assisting it. In a revenue aspect it
might even profitable to add cost in order to assure satisfy that we do not under
deliver for example lowest cost does not support to maximize the revenue. (Hjort,
2010)
6.0 Conclusion:
Throughout my research I have planned to go through the objectives and task
and what to get from the research is that:
To find out the impact of return policy on ecommerce business.
To find out the impact of return avoidance on ecommerce business.
To find out the impact of gatekeeping on ecommerce business.
To find out the impact of disposition on ecommerce business.
The main problem for conducting the research is to find out the impact of
sustainable return logistics on ecommerce. I have adopted a questionnaire on
dimensions of return logistics, ecommerce and return logistics. I have collected 100
responses and through this I have performed test analysis of frequencies, reliability,
correlation and regression analysis. I have tested my hypothesis majority of
hypothesis are accepted and 1 hypothesis got rejected due to not creating any link
between gatekeeping on ecommerce so I have modified my hypothesis and link my
gatekeeping variable with return logistics and through this the result which I got is
meaningful and have a relationship between gatekeeping and return logistics.
7.0 Limitation and Future recommendations:
44
I have limited my research due to unavailability of responses so that I have
only collected the data from Karachi. This research can also be done in other cities of
Pakistan like in other cities for example, Lahore, Islamabad, Sialkot. The research
which I have conducted is quantitative in nature and in future this research can also be
done in qualitative study. I have limited my finding up to 4 dimension of return
logistics, this research can also be done in other dimensions of return logistics such as
replenishment, recycle, repacking and reusable, asset recovery, compacting disposition
cycle time. I have conducted this research into an ecommerce platform, this research
can also be done in pharmaceuticals. The further work can be done on other factor of
sustainable return logistics such as economic conditions, environmental factor social
performance factors and sustainable manufacturing.
8.0 References:
45
Impact of E-business technology on operational competence and firm profitability
over time Proceedings ot the 21st Pacific Asia Conference on
Information Systems: ''Societal Transformation Through IS/IT'', PACIS
2017
A goal programming model for sustainable reverse logistics operations planning and
an application, Journal of Cleaner Production, 2018
Outsourcing reverse logistics for e-commerce retailers: A two-stage fuzzy
optimization approach, Wang, Chia Nan Dang, Thanh Tuan Nguyen,
Ngoc Ai Thy, 2021
The effects of e-business processes in supply chain operations: Process component
and value creation mechanisms, Zhu, Zhen Zhao, Jing Bush, Ashley A.
2020
A conceptual framework for reverse logistics challenges in e-commerce International
Journal of Business Performance Management 2020 Żuchowski, Wiktor.
Reverse logistics in e-business: Optimal price and return policy, Mukhopadhyay,
Samar K. Setoputro, Robert International Journal of Physical
Distribution and Logistics Management, 2004.
Designing a reverse logistics network for an e-commerce firm: A case study, Das,
Debadyuti Kumar, Rahul Rajak, Manish Kumar, 2020
Master ’ s degree thesis, Saldic, Seada 2020.
A multiobjective optimization model for sustainable reverse logistics in Indian Ecommerce market, Dutta, Pankaj Mishra, Anurag Khandelwal, Sachin
Katthawala, Ibrahim, 2020.
The impact of E-Business on supply chain management, Berisha-Namani, Mihane,
46
2009.
The Effect of Reverse Logistics on Sustainable Manufacturing, Alhamzah Alnoor,
2019.
Reverse logistics in e-business Optimal price and return policy, Samar K.
Mukhopadhyay and Robert Setoputro, 2004.
Returns Avoidance and Gatekeeping to Enhance E-commerce Performance, Hjort,
Klas, 2010.
The Effect of Reverse Logistics on Sustainable Manufacturing
Alhamzah Alnoor, 2019
A study on Reverse Logistics MASTER THESIS WORK (KPP231) MASTER PROGRAM
IN PRODUCT AND PROCESS DEVELOPMENT-PRODUCTION
&LOGISTICS, Reddy, Dhananjaya Audo, Sabah 2019.
47
APPENDIX
Appendix A1: PLAGIARISM VERIFICATION
Appendix A2: PLAGIARISM REPORT
Appendix A3: QUESTIONNAIRE
Appendix A4: SPSS DATA SHEET SCREENT SHOT
48
Appendix A2: PLAGIARISM REPORT
49
50
51
52
53
Appendix A3 Questionnaire
Questionnaire
Section A
1. Age
25 to 30
2. Gender
30 to 35
Male
3. Education
Certification
Bachelor
35 to 40
40 to 50
50 to 55
Female
Master
Masters and above
Professional
Section B
Questions
1
2
3
4
5
6
1
2
3
4
5
1
2
Strongly
Disagree
Disagree
Neutral
Agree
Strongly
Agree
Reverse Logistics
Have you heard about the term
reverse logistics? Do it beneficial for
the company.
Well-trained supply chain partners
assist in REL implementation and
management.
Cooperation with business partners
in the supply chain is high in the REL
Implementation
Third-party contribute in risksharing, culture compatibility,
information system technology,
supplier mentoring, employment
stability, and knowledge
management
Reverse Logistics flows through
multiple departments, Channels and
multiple Organizations.
No efficient and effective REL
systems are used to monitor
returns, and recalls are used.
E-commerce
I can shop on internet anytime.
I think returning an item purchase
from online is convenient
I think the price on internet is
cheaper
If possible, I will proceed purchasing
products on the internet
Online buyers say return policies
influence their decision to shop with
an e-retailer.
Return policy
Return procedures are consistent
and relatively easy
The return policy includes product
returns by the customers in cases
such as product end of-life and
54
defects.
3
4
5
6
In case of defective/wrong product,
the firm claims no liability
whatsoever in this matter to refund
or repair.
The product which got returned is
treated as donated, recycled, and
remanufactured. Repacked, resold
or sent to central processing.
The product returned cycle time for
the product handled in your
company is much higher.
The number of returned items
based on the sales is higher.
Disposition
The company follow the 3 kinds of
1 steps for disposal of waste material.
The company do resells their
returned item from their online
2 store at their outlet.
The company recycle their disposal
3 material to form a new material.
Gatekeeping
Types of gatekeeping, centralized
screening, in which all returned
products are collected then
forwarded to a central returns
facility, where screening takes
1 place.
Gatekeeping is done immediately
when products arrive to the
2 warehouse.
Separation of return information
and goods flow to facilitate
3 gatekeeping.
Gatekeeping the entry point of the
returns flow to facilitate the value
4 recovery.
The company can perform an
effective gatekeeping through
5 modern and innovative system.
Return Avoidance:
Do the company follow screening of
the return product while returning
1 back to reverse flow model.
Avoiding the returns is distant
selling through differentiating
customers and their service
2 delivery.
Based on achieved understanding
and results, how should a
supply/demand chain be organized
3 to avoid future return
55
Appendix A4 SPSS DATA SHEET
Variable View:
56
Data View:
57
58
59
60
iii
4
5
6