Use Of Reverse Logistics In Australian Construction Industry: An Attempt To Overcome Material Management

Research Aims and Objectives

Reverse logistics in the construction industry is referred to the process of movement of materials as well as products from salvaged constructed buildings to new building in construction site [6]. Hence, the aim of promoting the particular concept among the industry stakeholders as well as wider community of construction is important in this aspect. The qualitative meta-analysis is helpful to synthesis the outcomes of the previous researches as well as presents the actions required with the help of key stakeholders in order to promote the concept within real-life context.

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The earliest references to specific case study are considered as reverse logistics that is described as wrong method.   The processes of movement about the products from customers are back to the specific suppliers or producers within the channel of distribution. The council of logistics management has conceptualized reverse logistics as the role of logistics in returning the products as well as reusing the materials [11]. In addition, it is important to manage the process that can be helpful to manage the process that can be effective for integrating the process. It is important to improve supply chain, where reverse logistics is important for effective usage of the resources that are not considered and used previously.

Aims of the study

The objective of the research is making am integration of the framed body of knowledge on the reverse logistics in construction industry that can be helpful to overcome material management process.

The objectives of the study are as followed.

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  • To identify the issues involved with material management in construction industry of Australia
  • To critically evaluate the role of reverse logistics in overcoming the issues involved with material management in construction industry of Australia
  • To find out the issues involved with the use of reverse logistics in material management in construction industry of Australia
  • To recommended solutions for overcoming the issues

The research questions are as followed.

  • What are the issues involved with material management in construction industry of Australia?
  • What is the role of reverse logistics in overcoming the issues involved with material management in construction industry of Australia?
  • What are the issues involved with the use of reverse logistics in material management in construction industry of Australia?
  • How the issues involved with the use of reverse logistics in material management in construction industry of Australia can be overcome?

Reversed logistics has emerged with the process of manufacturing organization considered as an effective measure in order to achieve sustainable development along with improving. However, the construction industry has not kept pace in the procedure of reaping the advantages of reverse logistics compared to manufacturing industry [5]. On the other hand, it might be caused for industrial reverse logistics in the field of construction as opposed to the context of manufacturing. On the other hand, reverse logistics as well as its applications in the field of construction regarding the addressed central aspects of reverse logistics.

In the manufacturing industry, reverse logistics is deemed as the process of an integrated law logistics chain to the particular structure that can be redesigned process of improving performance. In addition, reverse logistics facilitates fulfilment of the objectives of conventional procedure through complementing forward as well as reverse logistics that becomes important for the organization [6]. In addition, it is important to focus on the point of origin of the products in order to explain several activities along with analogues phenomena like waste management or forwarding the logistics. In order to identify the sections, it is required to focus on reverse logistics process. Hence, it is important to research on the use of reverse logistics in the Australian construction industry where it is attempted overcoming material management.

Research Questions

H0: There is an important role on the use of reverse logistics to overcome material management issues in Australian construction industry

H1: Reverse logistics has no role in overcoming the material management issues in Australian construction industry

The trend of study as well as terminology is associated with the reverse logistics has been introduced. On the other hand, it unearths the major benefits as well as barriers of reverse logistics in the construction industry while providing a few effective suggestions fort harnessing the benefits as well as mitigates the barriers. Finally, the research provides a future research direction based on the review. The research has five chapters such as introduction, literature review, research methodology, findings and analysis as well as conclusion and recommendations.

The rapid and unprecedented rise in the construction sector in Australia has already lead to a boom of this sector economy. The rise in construction business has also led to certain issues that have to be solved. Most of the issues surround the unavailability of materials in the construction site and the environmental damages it is causing. It can be said that the issue of material management in the construction industry has plagued this business in the last two decades or so in Australia.

The construction industry is a very big sector and to increase the productivity of the sector, it has been bifurcated into many small areas such as, highways, rails, building, dams and tunnel. Therefore, it can be said that every project in a construction business is unique and with that their cost as well as equipment also changes. It is a proven fact that the cost of material of any project is more than 50% of the total expense [1]. This is the main reason why so much stress as been laid in the material management of the construction business. The main important concern of any construction business is its improper handling of the material during the working hour. The main area of the material management that is there in any construction company is the material shortage, lack of a proper storage facilities, wastage and damage and price fluctuation of the material [10]. The usage of paper based system that is still mostly use in Australia recording as well as exchanging information associated with material management within a particular supply chain in problematic situation in itself. These ways of handling essential data and figures are prone to errors and overestimation or underestimation issues.

Rationale of the Research

The decrease in the productivity in the construction business is also an important concern that needs to be discussed here. Around the year in Australia, many project gets a short as well as a long extension from its original due date of completion. Sometime it is related to the demand and supply issue of the material that are to be used in the site, but most of the time the reason for such extension is the decrease in overall productivity of the project that leads to delay in daily target that needs to be completed [3]. This can be a result of many factors such as motivational factor of the staff member and the employees, a constraint in the regular demand and supply in the site, non-availability of the resources that is to be use at a particular time, along with many other reason.

The effect of low productivity also has serious implication for any given project as has been seen in many project in Australia. The cancellation of such project is also one such issue that have bankrupted few construction companies in Australia. But the most serious implication of the low productivity is that due to this many project just gets stuck and is not able to move further which will not only is seen to have make the management suffer but the labourers along with the staff also suffers from this [5]. This has serious implication in the finances of any industry and can also damage the company beyond the point of recovery. The main reason of this stalling of project is due to the effect of insufficient supply of material or due to the storage facility not being equipped to handle the whole logistics of a project at one.

One of the very concerning aspect of this construction industry is the supply of capital that is caused by the action of the management official of the company. There could be numerous reason as to why the supply of capital is being hindered by the investors of the project. The management or the investor may feel along the building of the project that the project might not be that much beneficial and could bear a loss. Such kind of theory has an implication on the capital supply of the project which is already estimated to be around 50% of the total budget of the project. The constraint in capital supply can lead to the insufficient allocation of fund in sector of the construction company which will lead to improper utilisation of the resources and will eventually lead to decrease in overall productivity [6]. The capital supply of any construction is the core of the business and it would be impossible for any construction company to work with a sufficient amount of capital. It’s also a known fact that the more capital is there in a construction company the more prospect it is for that company to excel in the market through the different projects.

Research Hypothesis

The safety of the staff and the engineer on any site is also an important concern for any construction company in Australia. There has been numerous reporting of some minor as well as some major accident in a construction site s in Australia. Sometime these are due to negligence of the staff as well as the other employees and many time it is because of some machine failure that is installed in the site. This can be avoided by following a very basis security protocol whenever a new site in being selected for running the operation [2]. There should be proper safety gears that should be provided to the labourers and construction workers on site. The labour force should be made aware of all the dangers that they could be facing, because most of the times as it is seen, the ordinary labour does not have any clue of the safety concern of a site as they are not that much taught in that subject [7]. Proper mask should be given while handling of concrete and cement, protective gears should be given to the labourers that are working in the heavy machinery department. Proper training could be given to the trainee manager so that he/she can impart those skill to the general recruit and they can used those skill in matters of life and death. Generally, if there is a proper mechanism in a construction company about the safety concern of the people then the chances of any such accident is very low and it also motivates the worker of that respective company to work hard.

The quality control of the material use in the construction company is also is very vital in the growth prospect of that company in Australia. There are many construction company in Australia and their numbers are growing every single year, but , then took the majority of the project that is being  executed at any given times goes to the company that have established themselves by not compromising on the quality front of their business [4]. The quality is the most important criteria every customer looks while they are selecting or approaching any construction company not just in Australia but throughout the world.

It is because of this reason it is very important for every construction company to not compromise on the quality of the material. However, the fact that there is a lot going on with respect to t the rapid globalisation, it has become increasingly difficult to find the best quality without paying a hefty amount of capital to the supplier. The rapid expansion has made the business to be dependent upon not so great quality product as with time it has become more and more difficult for the supplier to bring the best quality in the market [17]. This issue has to be dealt with because, if the quality of the material is not what the buyer is expecting, there could be an issue with the demand and supply mechanism. Also, the quality of the material is the one that is responsible for the long life and success in any project of the construction business.

Structure of the Study

 In order to take all the above problem of material management in the construction industry in Australia, Reverse Logistics mechanism can be effectively applied in the area of the construction department to effectively solve the issues of the material management that is primarily the main concern of the industry. The main idea behind the reverse logistics is that it can be use to cut the cost of the refurbishing and reusing of any damaged product that is being made in the construction business [19]. Our report on the successful implementation of the reverse logistics will be covering all the aspects of the methodology and what are the reasons as to why the reverse logistics is applied in the construction area. It is also to be noted that in Australia, the concept of reverse logistics have not being properly applied in the construction business because they are not promoted very enthusiastically by the big construction companies in Australia. This report can also be applied for dealing with the promotion of the reverse logistics in small construction as well as mega construction companies that are active in Australia. This sort of technology must be appreciated and not neglected by the construction Industry.

Reverse logistics is the procedure through which the products are generally moved from a specific point of consumption to original starting point, the objective is to reduce and reuse materials as well as reduce environmental impact to a minimum [16]. It is one of the most recent advancement in the field of business management that very effectively increase the efficiency along with proper utilisation of the material management of the company which will definitely improve the finances of the construction company.

The construction industry is considered as the largest contributor of waste to the landfills. Hence, it has the maximum scope to employ reverse logistics. The implementation of Reverse Logistics is an efficient technique to increase the competitive nature of the manufacturing industry. When organizations implement reverse logistics it gives their environmental image boost.

  • Traditional Logistics: It the proper organisation, management as well as controlling flow of material from raw site to construction up to the construction site. There are various processes, which are done in between the traditional logistics [15]. This include from careful selection of the raw material so that quality cannot be compromised and from it is taken to the factory where it is make and from the factory it is taken to the distributer where it could be kept in a warehouse or it could taken directly to the construction company’s warehouse. This is then taken to the construction site or to the inventory of the construction company depending upon the order and nature of the operation on site.
  • Supply Chain Management: It is considered as the core of new construction company that is in the business.  It can be defined as a broad network of activities and facilities that is required to provide customer as well as economic value to the design of functions and contract management. Hence, in order to provide customer as well as economic value to specific design development. On the other hand, material as well as service infrastructure is important for delivering the process [14]. The supply chain management includes all the processes in a project from its initial demand to its final demolition. The importance of supply chain management can be understood from the fact that the commercial exchange of products as well as services in the construction industry has the amount of nearly 75-90% of total cost of the project.
  • Forward Logistics: The forward logistics in a construction industry is the movement of the material from the point of its origin to the point of its consumption, which means the construction site. This is where there is a difference between the Reverse logistics that can be stated as the process of movement of materials from the consumption point that is back to the specific market.

The traditional concept of any logistics construction practitioners are considered as providing the direction of flow from a point to the extraction up to the process of consumption.  The researchers have the idea of construction industry where SCM need to attempt resembling natural procedures attempting to resemble the process where natural procedures that are consumed properly with any residual waste.

In this section, it will try to see the application aspect of the RL in the construction business and the process that can be utilised for effective waste management as well as for implementation of better human resources in the business [13]. It will help in the overall productivity of the sector. There are various stage of the RL in construction business in Australia. They are:

  1. Collecting: This process as the name suggest will collect the material that has to be taken back to the inventory or to another construction site from the given project.
  2. Sorting: It is done to minimise any later complications in the selection of a desired material for the other construction site. Also, sorting helps in maintaining a proper order of the material of the construction site.
  3. Refurbishing or reprocessing: This is done to maintain a minimum amount of quality to the construction material so that it can be used for other construction site or project. This might include overall changing of the product or it might happen that half of the material is to replaced with a new one, it all depends upon the condition of the material that could either be bought from a demolition site or a construction site.
  4. Redistribution: This is the last process in the reverse logistics process that is deployed once after all the stated process has been done [12]. This is the last stage of the above steps in which the material is sent to the construction site.

Literature Review

The activities are important and need a specific amount of operational logistics activities like transport of goods or waste. Hence, recovery of product reverse stream of the product with specific consequences, which are the consequences of several sources of supply like collection points as well as few deemed for demand points for an example of disposal sites as well as recovery facilities. However, the design needs to be complicated  through uncertain factors.

Discussing reverse logistics, the following aspects need to be taken into consideration.

  1. Motivation of enterprises to take action in reverse logistics as well as reasons for product return,
  2. Processes carried out in logistics with the aim of recovering value,
  3. Characterisation of returned products, and
  4. Actors executing the reverse logistics activities

These stated processes that are to be use does poses certain specific challenges when it comes to its proper implementation on the construction business. Many of the challenge that is faced by the sector is due to the complexities in handling the size of the material that is very different from other sectors.

Whenever a construction material is classified, it is done through properly differentiation of the constituent part and different component of the building that is to be use [10]. According to Kibert, five general categories of the houses that can be differentiated.

  1. Manufactured and site-installed commodity products, systems, as well as elements with any site processing, for example; boilers, doors, lighting, bricks, valves, windows and electrical transformers.
  2. engineered and off-site fabricated, as well as the site-assembled elements. For example, structural steel, glulam beams, engineered wood products, precast concrete elements wood/ metal trusses),
  3. Manufactured and site-processed products, for example: dimensional lumber, electrical, drywall, plywood, metal, plastic piping, ductwork, wiring and insulation
  4. Off-site processed as well as site-finished product, for instance: cast-in-place concrete, , soil, asphalt, aggregates.
  5. manufactured that are site-installed with the low mass products. It has the paints, glues, mastics, sealers and varnishes.

Depending on specific actors engaged in the process of reverse logistics in construction industry has several networks on the points of collection. Whether operator of construction is responsible for transport as well as waste to the facility of recovery, it is important to make disposal of waste properly with the help of proper network structure [2]. In addition, it is important to analyze the situation so that it can be processed in regional business as well as contracts with private persons.

These materials represent a probable recoverable material and their parts that are transformed into waste. Deconstruction of the waste arises at the time of erection of the buildings. The materials are classified as per the European Waste Catalogue. It include different explanation of waste like waste from inorganic chemical procedure as well as waste from the construction industry and demolition waste that includes excavated soil from the contaminated sites.

The above stated process has to be followed separately for any demolition site and then it has to be analysed that there is proper implementation of all the resources that are present in the material. Here, it must be stated that the benefits of these are extreme and long term and RL does have a direct impact on the environment of our surrounding. It solves the problem of material availability and it is sustainable in the end [6]. The technology is also not that costly and can be afforded by small to big construction company in Australia.  In the next section, it will see the numerous benefits of the used of RL in construction industry in Australia and it can solve the problem of material management.

It is very essential for the reverse logistics mechanism to be implemented in material management of the construction Industry .Material management is one of the complex management issues that surrounds any business, but with the size and budget of the construction industry, it takes a new height. The allocation of the resources have to be done very effectively in the construction sector [7]. Proper training is to be given to the staff of the industry to handle the effective utilisation of material management through RL. The supply and demand is also an area of material management that is also been handled through reverse logistics.

There are various direct impact that is seen because of the proper implementation of reverse logistics in material management. The different section of its impact on different department of the construction industry in Australia. Proper analysis of the impact on these department has been made in relation to the material management. These impacts are:

Financial Impact: There is a positive impact on the financial of the construction Industry by the successful implementation of the reverse logistics. A lot of capital is being save by utilising the use material and it is well known the business sector that a capital saved is a capital earned. Also, there is a huge amount of capital need for the transportation of the raw material to the construction site as well as to the inventory of the company [8]. Through RL, these capital can also be saved up to a huge amount, which can be invested in the growth of the company. Along with that, the cost of refurbishing a damaged item can also enhance the sales of the construction company.

Environmental Impact: As have already been stated, the most impactful among all the department is the effect it has on the environment front. Reverse logistics (green logistics) has impact on environment [12]. The reverse flow of material in order to recover appropriate disposal can contribute to the green environment as waste as well as pollution that can be reduced at low cost, which can be helpful to enhance profitability.

It is for this reason the RL has to be encouraged for the environment front. The need of RL in Australia has raised also due to the growing Environment concerns for the people. RL has effect on material management [14]. The RL systems is dynamic, difficult to forecast and uncertainty, the impact on the process of inventory need to be managed properly. The systems, production and inventory systems, and bullwhip effect. Below is a discussion on how RL systems impacts on procurement, production and bullwhip effect.

A good Reverse management does utilises a lot of data and its analysis is done through which the firm is advised on many aspect of the business. It can then be use to deal with the supply chain mechanism of the company. RL does help the construction companies by improving its supply chain [17]. This is done because if a construction company does utilises RL in its material management, there would not be much shortage of the material and so there would be no hindrance in the supply of material even in times of emergency for the company or the market. The reusable material that might be collected from a demolition site can also be stored in an inventory and can be used for selling or using in another project.

It has also been seen that due to the due to the positive feedback mechanism that is involved in the Rl, the customer feedback are very positive as is the case with customers of different sectors. The customer also appreciates the used of innovative technology of reusing and utilising any material that can be used for other construction, these are some of the positive implication of the RL execution in the construction industry [18]. The cost of devising a sound reverse mechanism is also not that high as compared to other technology that is very costly to be deployed. The RL can be use by medium to small construction business owners too. This is a huge advantage and probably a very good reason for the proper usage of RL in Australia to overcome all issues of the material management. There is also an added advantage of the brand image that it gets if its business is implementing reverse logistics as seen by a study done by Nawari (2006) titled: “The Effect of Reverse Logistics of an Organisation. Competition, Cost and the Environment”. There is a perception of the media and the customer’s as well that RL can provide a green reputation to the company and can increase its brand value which is also true in context of Australia. The construction industry can revamp their brand image if they are implementing the reverse logistics in the eyes of the public. Among the various direct impact, the velocity at which the work flows in a construction industry also has an impact when RL is implemented in this sector [19]. The velocity of the workforce and various other function is bound to be increased because of Reverse logistics mechanism. There will be an increase in service market share because of effective implementation of reverse logistics. The goals that could be sustainable in the long run can be achieved with a higher success rate. Transparency in the whole system can be seen in the construction business if RL is successfully deployed.

The management of products beyond the process of manufacturing as well as final sale can bring cost as well as efficiency advantages of reverse logistics to supply chain. Reverse logistics refers to the procedures related to management of the products beyond manufacturing as well as sale. It consists of repair, warranty, redistribution as well as value recovery. On the other hand, there are several organizations included in the electronics industry, the reverse logistics becomes an important factor [11]. However, the change as the organizations realise that proper and effective management of reverse logistics supply chain offers several scopes in order to minimize costs as well as create untapped revenue streams through enhancing efficiency and reducing waste and recovering the process of underlying value of the returned products as well as materials.  

On the contrary, forwarding supply chain is considered as the first step in optimization of reverse supply chain as well as minimizing the cost of reverse logistics is addressing the procedure inefficiencies. The issue of scrapping the reusable parts may be exacerbated in the organizations that have a department handling returning of the products as well as handling spare parts for repair. However, there are any formal communication between the departments. The process of handling the warranty claims with the process of inherent efficient [15]. The element is under the warranty that does not mean RMA as the most efficient method for handling the process. Furthermore, the major scopes within any type of reverse logistics operation come under the production areas as well as return management with service parts management.

On the contrary, the reverse logistics is considered as the integral part of logistics operations for several organizations. The industry of an organization has an impact to which that can deploy a formal returns management procedure.  Reverse logistics is considered as the key functions of supply chain. It is considered as a complicated as well as difficult for navigating the procedure. It is happened as the supply chain evolves as well as increases in complicated process. The procedure also includes a subset of distinctive service that is offered in supply chain management system [4]. The operators of supply chain are emphasizing on gaining efficiency of reverse logistics that is more than the process of return volumes. The important financial impact has driven nearly 3PLS, distribution centres as well as warehouses are required to add as core competency compared to the specialized service. An effective program offers several scopes for recovering the value as well as cost minimization. [6].  The use of the methods like lean planning as well as inventory optimization and vendor management process can optimize the trade-off as well as ensure appropriate part in right place and right time.

Comprehension of proper methodological tools for the research is helpful to develop the research in proper way. Research methodology assists in understanding the method to conduct the research in right way. Research methodology is a systematic process where various types of associated concepts are related to proper research study. Present section includes research philosophy, research approach and research design. In addition, data collection and analysis process are explained in the research. On the other hand, ethical consideration for the research during conduction of the research is discussed in this section of the research. It is important to define the research issue.

Methodological tools

Selected methodology

Research philosophy

Positivism philosophy

Research approach

Deductive Approach

Research design

Descriptive research design

Data collection process

Secondary data collection

Data analysis process

Qualitative Data analysis method

Table 1: method outline

(Source: created by author)

Realism, post-positivism and positivism philosophies are the types of research methodology [24]. Positivism philosophy makes sure correctness and legitimacy of data. It is taken about the methods where data are related to the process and phenomenon needs to be collected and analyzed. On the contrary, the concept of knowledge may appear as profound because of involving in the part of creating knowledge and able to cover the research questions as well as answers.

Positivism philosophy has been chosen in the research for analyzing the importance of reverse logistics in material management. Selecting the research philosophy influences practical associations. In addition, there are important philosophical differences existing in the research that focuses on the facts as well as analysing the importance of reverse logistics. On the other hand, developments in practicing the research have been presented in conventional way.  The research does not follow humanistic qualitative method, where interpretivism philosophy has been rejected in the research. The research is based on quantifiable observations and ensures statistical analysis that is obtained in the research.

Research approach is important for conducting a research as it ensures proper format of the research that is important for the research [25]. A right research topic is chosen as it is significant as well as formation and conduction of the research. Deductive approach and deductive approach are the types of research approaches used, whereas inductive approach covers the development of theories and models through analyzing the existing data on the particular topic. However, deductive approach discusses as well as analyzes the existing theories and models related to the topic.   

In the research, deductive approach is selected.  As the approach follows the existing theory and concepts of reverse logistics in material management, selection of deductive approach is justified in the research. On the other side, inductive approach has been discarded as the research does not aim to develop theory and model about the research topic.

The research design has an important role in the research as it follows detection of the issues consisted in the importance of reverse logistics in material management. However, correlation design related to the research has been discarded [23]. On the contrary, the research does not follow case control study   and semi-experimental  research design that are rejected  in the research as it does not engage field experiment. On the other hand, the strategy has permitted the researcher explaining various factors regarding the research topic.

The data collection method assists the researcher in collecting data for the research [22]. Secondary data are collected in the research regarding the importance of reverse logistics in the research.  Data can be helpful in making perception of the research topic during helping in extracting the materials that are helpful for collecting raw data and directly catered based on the demands. Secondary data has been collected from various reliable sources like peer-reviewed journals.  

Qualitative data analysis technique is used in research as it assists in recording the narrative form of data. On the other hand, qualitative data assists in providing theoretical aspect, which can lead in better comprehension of the topic.

There are different types of sampling method used in research such as simple random probability technique and non-probability sampling technique. Deploying random probability sampling technique is important is justified in research. The method helps in selecting the secondary source of the research.

While collecting the data for the research, it is important to ensure that the procedure of data collection is complied with ethical practice for the particular research. After completion of the data collection procedure, it becomes important to ensure proper ethical practice. The data collected for the research requires to be properly extracted from authentic sources.

This section of research presents the data analysis about the importance of reverse logistics in material management. Qualitative method has been used in order to analyze data for the research. Data analysis method assists in improving quality of information as well as produces the processing of conclusion regarding project methodology. In addition, data analysis helps in exploring the research. Based on the data obtained from secondary sources, themes have been formed regarding the topic of the research. It will be helpful to get findings about the importance of reverse logistics on material management.

Theme 1: Impact of reverse logistics on material management

Generally, in construction business, modern technology is not been used in adequate amount in order to avoid and mitigate human error that are not properly integrated with project management system for tracking as well as managing the materials in easier as well as faster way. The supply and demand of the material is also an important concern in the material management in its supply chain planning and supply chain execution capabilities [10]. Now, because of regular fluctuation in price, there is always a concern for purchasing of the raw material in a higher price than the amount that was fixed in the contract of any project, which will lead to loss of profit in that project.

A loss is also seen due to inefficient used of damaged product which has to be sent back to the manufacturer and for utilizing it to make a superior product and then used in that sector [12]. Non-Utilisation of the human resources is also a concern in the material management of the construction industry. There is a significant demand for proper organising and controlling the flow of supply in this sector. There is already a shortage of product supply in the business, which is due to the rapid expansion of the sector and the overburden it causes in the environment.

The main concern is the availability of this material and the cost that it poses to fetch it from the supplier to the buyer. The destruction of a construction site has also to be applied to get that product and try to refurbish it to sell to a new buyer. Then there is a scenario of no usage of the logistics that have been supplied by the manufacturer to the buyer and it has to be taken back to the manufacturing unit [20]. These processes cost a large amount of capital and investment again to move back the construction product from the buyer to the seller. However, the issues of reuse and recycle can be handled in a remarkable manner by the use of reverse logistics in construction business in Australia. First, it has to know the different challenges that a construction company faces in Australia and its different state and why the reverse logistics would be able to counter those issues and concerns. The following report presents an effective and profitable use of reverse logistics that could be applied in the construction industry to minimize loss and to apply these tested principles to minimize the environmental damage and to use the damaged product which will help to reduce the refurbishing cost of the product and benefit the construction company. The demand and supply theory also has to be understood in relation to the construction sector of Australia [15]. One of the main issues that concerns major companies is the material proper allocation of the resources that need to be done for the success of any given project. For this, it will try to be studied the structure of working of the reverse logistics in the construction sector through knowing the application aspect of the subject that is unfortunately have not been taken so seriously by the construction Industry of Australia.  The advantages of using the RL in construction business have also been discussed in the later sections.

Theme 2:  The significance of reverse logistics in supply-chain management system

Reverse logistics in construction industry includes the plans of business logistics. It operates as well as controls specific flow of logistics. In addition, it can control the flow of information regarding the post sale return as well as post-consumption of the products to make productive cycle by using reverse distribution channel. On the other hand, adding values of several types of procedure that helps in understanding economic, ecological, legal as well as corporate image. Hence, reverse logistics is considered as the most important procedure that deals with the typical consumption process to the origin point [10]. On the other hand, the materials and products move towards secondary point of consumption that could be helpful for secondary markets and outside of the construction industry boundaries. It is regarded as the RL constituent system. Hence, returning materials does not require going back to the origin point. It could be construction bricks and used in several buildings as well as down-cycled to different product as explained in a great extent.

The Loop supply chain along with RL is both concepts relating to the flow of the damaged or rejected material back to the site of a new project [11]. This can be initiated by using scientific technology so that it can be determined if a material is usable in the market after it has been extracted from the demotion sites. The material can also be directly taken to the site of the new project, if the quality analysing checks the materials and have no issue with the quality of the material. The Rl uses a very simple process of eliminating any waste product that could be used in the other project of the construction company or for any other subsidiary of that construction company.

Theme 3:  Challenges faced while using reverse logistic in material management  

Like any other industry, the construction industry also have many problems that needs to be stated so that it could be later verified through the use of Reverse Logistics whether these problems of material management can be solved through it [16]. Apart from the challenges in the material management, there are many very generic and specific issues that are there in the construction sector, like the shortage of specialist labour force, the safety of its labour onsite,. The issue of quality control and the overall productivity of the workforce is required to analyze. There has been an in depth analysis made on this report about these problems.

Although, there are many issues with the material management of the construction industry, the process of reverse logistics does help to introspect and then improve them. It is an unfortunate thing, that a great process of managing the material management of this business with so much seen success, there is still no great progress seen in the public as well as private companies of Australia [7]. The process of RL is as effective as has been seen through our report, that there should be discussion held in Australia among the leaders of the construction sector to make them understand the many benefit of this innovation in management of business.

Theme 4: Recommendations for overcoming the challenges

There is even a possibility that the same construction company to the other location can use a material that has been not used in a project. There could be a scenario when there is no requirement of refurbishing a material before it could be utilized in some other project, both of which can increase the profit of the company [5]. On the contrary, the complex structure of material management can also be solving through a proper implementation of the Rl in construction Industry. It might need a proper motivation for the staff of the company but after that, the process could take care of itself [8]. The RL does cut the cost of transportation of the material to a great deal as it has been seen in the previous sections. The handling of the raw material is also improved through the implementation of the reverse logistics because they need to be reused and the quality of the product will have to be of good standard is it is to be used again.

There are many advantages of using RL in construction; one among such is the transparency of any defected item or the item that might be replaced. The RL is very efficient is categorising all the defective as well as non use material from a construction site that could be reused after proper handling of the material [6]. This step thus eliminates numerous drawbacks of the unused or defective material. As have been stated earlier, that the process of sorting and selecting is very crucial in the reverse logistics method that automatically improves the chances of reusing of the, material for the next project or for selling of those product for purpose of gaining profit. The second advantage of the RL method is that it increases the life cycle of the material use like a concrete from a demolition site can be use for another project that could save a lot of capital as well as save the danger of waste creation in the construction Industry.

Conclusion and recommendations 

Conclusion

The construction industry in Australia might be improving on the aspect of finances. However, there are many concerns relating to the proper material management of these companies. There are situations when because of unavailability of material, a project is stalled and huge financial burden can be there for the management of the firm. There is also an issue of proper utilisation of the resources of the company and see that the waste can be minimised. The decrease in productivity is a reaction improper material management. As reverse logistics is an innovative management tool can be very effective in overcoming all the concerns that is posed by the concerns surrounding material management. This process utilises the product through the not so normal route of point of consumption to the point of origin. If properly utilised, RL can do wonders for the construction companies in the area of waste management, as it reuse the product from a site and can be applied for refurbishing too along with using the damaged material if it can be  mended.

In order to overcome the issues faced while implementing the reverse logistics, recommendations can be given in the present study.

  • Remanufacturing or rebuilding the products with reused, repaired as well as new parts
  • Reverse logistics is important and efficient as well as profitable with better planning, management as well as the process
  • Reverse logistics is one of the elements of service lifecycle management that can be helpful to improve the process
  • Returns management, recycling management as well as warehouse management are helpful for the organization.

The factors related to the impact of reverse logistics do not cover all the factors in the present study. Thus, future studies can be taken place considering the levels of success in the material management process. It is important to make perceptions that are recommended to the future researches.

The research helps in gaining the result of research topic. It allowed the procedure of encountering the restrictions. However, there are some limitations in the research such as time and budget constraints. Lack of finance could be enhanced with better tools.

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