Reverse Logistics: Extracting Value from Post-Consumer Textile Waste

Organizations are reluctant to engage in either remanufacturing or recycling because of the variability and uncertainty associated with the product returns. Much of the material collected through reverse logistics is considered waste until evaluated. The problem was that many primary (first-quality goods) retailers have not determined how to optimally sell unwanted products to secondary markets. Many primary retailers have not identified the product's value, which depends on the condition and location of the returned product and alternative markets to reuse, recycle, or resell their collection of product returns. The purpose of this multiple-case qualitative study was to assess how secondary market retailers extract economic and customer value from the (a) collection, (b) inspection, and (c) resale of post-consumer textile waste. Twelve marketing and operations managers from three segments of the secondary market: off-price retailers, consignment shops, and thrift stores were interviewed. The general findings revealed that (a) people in the collection process are important to retailers in obtaining items from suppliers to sale and re-sale; (b) employees do the inspections, inspections are needed for flaws, inspectors are the sales people, and damage merchandise is inspected; and (c) marketing and others should work together, members should know their roles, and following the company guidelines are very important in the retail sector. Further research was recommended to expand the outcomes of this study by examining a larger population of retail managers within the state or across multiple states, complementing the results with quantitative analysis, and comparing and contrasting various responses and themes generated by the retail managers to those of suppliers and consumers.