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The purpose of this paper is to identify the major reverse logistics design aspects in used clothing value chains, and those enabling and challenging manifestation of value creation.

This research is based on an exploratory study of 12 established organizations in Swedish used clothing networks. Data were gathered through semi-structured interviews, secondary sources, and subsequent field visits.

Empirical insights on how various design aspects influence value creation in used clothing value chains are provided. Crucial among these are strategic and consistent collection, presence of multi-channel sales, and communication of post-retail concepts for manifesting value by bolstering consumer satisfaction, environmental motivation, and corporate image. Inter-organizational collaboration in reverse logistics processes and workplace training, further renders higher economic, environmental and information values.

The paper proposes a holistic framework of design aspects in reverse value chains, and extends existing knowledge on how these aspects manifest value creation. By doing so, a nuanced view of the design aspects is offered by highlighting how they can differentially, either enable, or challenge value creation. In this connection, seven supporting propositions are developed for in-depth future research.

The paper includes implications for the devising strategic solutions for higher value creation, by understanding of the key enablers and challenges, for many actors in the used clothing networks.

The role of various design aspects in reverse value chains for manifesting multifaceted stakeholder value creation is explicitly defined in the paper.

The purpose of this paper is to explore the impact of the product residual value (PRV) and the loss of value over time of returned products in the reverse supply chain configuration. It also examines whether or not the distinction of Fisher's functional and innovative products holds for the reverse supply chain.

In order to identify the relevance of the Fisher model, the model needs to be recast in terms of PRV, which, in this context, is considered the independent variable in the reverse logistics arena. Products defined as innovative in Fisher's taxonomy correspond to disposed products with high residual value, whereas functional products correspond to disposed products with low residual value. Furthermore, the PRV and the speed at which returned products lose their value are considered in order to determine the configuration of the reverse supply chain that allows for recapturing most of the PRV. These notions have then been tested by analyzing two reverse supply chains with a case study research methodology.

The findings show that low PRV is associated with second‐class recovery options (recycling and energy recovery) and that high PRV is associated with first‐class recovery options (reconditioning and remarketing). When the recovery option is recycling, time is not relevant, the primary objective is cost reduction (efficiency), the chain is centralized, and actors and phases of the reverse chain are determined by the specificity of the recycling process. When the recovery option is reconditioning, time is primarily relevant, tradeoffs between costs and time efficiency are necessary, the chain presents a centralized structure, and the presence of other types of actors and phases influences the structure of the reverse supply chain.

The focus is restricted to the industry of electrical and electronic products.

Based on the outcome of the study, managers are able to determine the basic prerequisites for the design of their reverse supply chains.

Previous literature suggests that when the PRV is high, early product differentiation is necessary, and the chain is therefore decentralized. The paper demonstrates that this is not confirmed in the case of low returned volumes and high reconditioning quality standards.

In a growing number of competitive sectors with closed‐loop supply chains, the reverse component has become an inherent part of the business, not to mention a core competence; hence the need to have performance measures that can be used to provide an accurate diagnosis of the state of the supply chain by addressing both its forward and its reverse components. It is also important to identify the level of existing integration between parties, as this has been associated with supply chain performance. This paper seeks to address this issue.

Elements gathered from the literature reviewed are used to present a set of measures that can be applied for auditing purposes in: the forward supply chain; product returns and reverse logistics; flows of materials and information and integration between supply chain tiers. To illustrate the use of the proposed set of measures for auditing purposes a case study involving a major European mobile phone network operator was analysed using the operator's own brand of handsets characterised for having a closed‐loop supply chain.

The proposed set of measures for auditing purposes provide an overall picture of the performance of a closed‐loop supply chain by revealing high levels of stock for the products analysed, consequence of the difficulty to generate accurate forecasts and the accumulation of high quantities of product prior to launch. Also the methodology presented in this paper identifies links between product returns (faulty and non‐faulty) to operations in the forward component of the supply chain (design, sourcing, manufacturing and forecasting) and also indicates how performance is affected because of integration.

The proposed set of measures for auditing purposes is relevant to closed‐loop supply chains which are related to products with short life cycles and during their lifetime can experience faulty and non‐faulty returns. The scope of the study presented may look limited; however, the application of the performance measures presented in this research can become a fundamental component of larger audit exercises. Further research should be carried out with supply chains on products with lifetime cycles that span long periods of time.

For industry sectors with closed‐loop supply chains, the availability of a set of measures that address the forward and reverse components plus integration can provide a detailed picture of the performance of value streams over traditional approaches to measurement that focus on only one component of the supply chain. The set of measures has the potential to be used to achieve better customer service and reduction in costs involving shipping, warehousing, labour and call centres.

The contribution of this research on closed‐loop supply chains is a methodology that defines performance measures for auditing purposes of the forward and reverse components of supply chains and assists in assessing the importance of integration between different tiers of supply chains.

Undesired changes in the environment and reduction of natural resources have necessitated the need for environmental protection and resource conservation. Textile and clothing industry is the second largest (after food) industry. Therefore, there is a need to protect the environment by reducing the use of natural resources. The purpose of this paper is to explore and identify the best reverse value chain alternatives for the clothing industry.

An exploratory study is undertaken at six organizations working in the area of used clothes. The data were collected with the help of semi-structured interviews and a questionnaire, for the analytical hierarchy process analysis. The information from other sources such documents, websites, and reports was also gathered to strengthen the findings.

There are different reverse value chain methods to minimize the use of natural resources such as direct reuse, upcycling and downcycling. Incineration and landfill can be considered as the last options. The selection of best reverse value chain method is a multi-criteria value decision-making problem, as this involves complex decision parameters.

The industry practitioners can use the above model and results to make end-of-life decisions.

This paper develops a model on the basis of the analytic hierarchy process to determine the best method to close the loop of the clothing value chain. On the basis of the result and analysis, upcycling emerged to be the best alternative to close the loop of the clothing industry.

This paper aims to propose a framework for evaluating the performance of reverse value chain activities in the clothing industry operating at base of the pyramid. Specifically, the research explores firm and supply chain factors influencing clothing reverse value chain activities with a focus on developing economies.

The study adopted an explorative technique using direct observations and semi-structured interviews to collect information from eight companies and two traders. Internal resources and value chain capabilities were examined using theoretical underpinnings of resource-based view, transaction cost economics and base of the pyramid.

The paper identified multiple benefits of offshoring reverse value chain activities to the developing countries (at the base of the pyramid). Low operation cost, skilled manpower, business knowledge and location are found to be internal success factors. While favourable government legislation and domestic recycling markets are important external factors contributing to the success. Developing economies such as India contribute to firm performance by integrating, transforming, acquiring and co-creating the resources at base of the pyramid. Further, it was found that to achieve higher assets specificity, a few companies have opened their own shops in African countries, while others have opened sourcing branches in Canada or the USA to ensure good quality of raw materials. Collaboration and coordination among different value chain partners minimise cost and increases profitability. Innovation in the process such as clothes mutilation for recycling has created new business opportunities.

Information was collected from only eight organisations and two traders from India. Future scholars may extend the research to generalise the findings by documenting similar phenomena.

The proposed framework can serve a basis for the practitioners to evaluate firm performance, and the insights can be used to achieve sustainability by engaging producers, employees, consumers and community using base of the pyramid approach.

The study provides unique insights into the prevalent export and re-exports phenomena of used clothing. The resource-based view, transaction cost economics and base of the pyramid strategy underpinned together to develop a framework for understanding reverse value chain activities of clothing.

This paper aims to purport deeper understanding of, and instigate theoretical elaboration to, multidimensional value created through different reverse supply chain (RSC) relationships.

By capturing the relationships (and their differences) constituted and embedded in three “extreme” case studies from global used clothing supply chain, the sources of multidimensional values are explored in line with Dyer and Singh’s (1998) relational theory.

In the RSC, when downstream relationships are typically more opportunistic, value is created using inter-personal ways of knowledge sharing and through use of informal safeguards. In contrast, the upstream RSC relationships are more symbiotic, and value is created through more seamless (and routinized) knowledge sharing practices, and additional use of more formal transaction-specific controls or financial incentives as safeguarding instruments.

The use of consolidated case studies may affect the consistency in the findings presented. Another limitation relates to deriving propositions per each source presented in relational theory.

Practitioners particularly from industries whose global RSCs include different natures of relationships and multiple value incentives can be benefited through this study.

The paper extends the original sources of value creation prescribed in relational theory by contextualizing them in RSCs. It depicts how multidimensional values are created relationally by dyadic partners as the nature of relationship differs between upstream and downstream.

The notion of what is meant by “value” is explored and summarised in terms of its involvement in delivering the product/service attributes, considered necessary to create customer satisfaction. Investigates the business system in relation to the value chain, as well as citing the conflicting views of a number of authors upon this topic. A specific company is used as a template to bring out many of the notions that have been put forward. Concludes with the fact that the traditional value chain begins with the company’s core competences, whereas evidence suggests that modern value chain analysis reverses this approach and uses customers as its starting point.

Used clothes supply chains are becoming increasingly complex, fragmented and less transparent due to rising volumes of discarded clothes and its dispersed reverse logistics operations across the Global North (GN) and Global South (GS). While it has a promising impact on circular economy and international trade growth, increasing exports of used clothes and overflowing landfills raise some negative concerns on its overall sustainability. This paper addresses the dichotomy that exists in terms of interpreting the sustainability credentials of used clothes supply chains.

A systematic literature review was carried out and 55 articles were examined to identify the triple bottom line (TBL) sustainability impacts of used clothes supply chains. TBL sustainability issues were identified, reflected through the lens of natural resource-based view and interpreted in the form of propositions.

The paper pinpoints seven TBL sustainability concerns and prescribes three sets of strategic resources required in glocal used clothes supply chains for mitigating these. These are (1) slowing the supply chain by tackling poor quality, overproduction and oversupply issues, (2) improving logistics/supply chain infrastructure and ecosystem collaboration and (2) embedding transparent environmental, social and governance (ESG) measures taken by both value chain actors and regulatory bodies, for embracing system-level sustainable development.

This is one of the first studies to analyse TBL sustainability of glocal north–south used clothes supply chains. The study is unique in terms of its scope and contribution to the sustainable supply chain literature.

Most companies look at their core competencies when they want to build competitive advantage. But they're grabbing the wrong end of the value chain.