Reverse logistics
management in
construction
MASTER THESIS WITHIN: General Management NUMBER OF CREDITS: 15
PROGRAMME OF STUDY: Engineering management AUTHOR: Linnea Bengtsson and Jonatan Gustafsson TUTOR:Tommaso Minola
JÖNKÖPING 05/2020
A multiple case study examining the effect of
organisational size
Acknowledgement
Linnea Bengtsson and Jonatan Gustafsson would like to thank Jönköping International Business School for making this thesis possible in these confusing times.
We would further like to thank our friends and classmates for the constructive feed-back and discussions that sparked the inspiration for this thesis.
A special thank you to all the organisations and individuals who participated in different ways even though Covid-19 has put restraints on everyone’s daily lives. We are very grateful for your participation which provided us with the knowledge possible to write this thesis.
Last but not least we would like to direct a special thank you to our supervisor Tommaso Minola for the feed-back and support throughout the process.
Master Thesis in General Management
Title: Reverse logistics management in construction: A multiple case study examining the effect of organisational size.
Authors: Linnea Bengtsson & Jonatan Gustafsson Tutor: Tommaso Minola
Date: May 2020
Key terms: Reverse logistics, construction management, organisational size, re-used material, waste management
Abstract
Background: Increasing awareness for the environmental impact, governments and higher
authorities has in the past years issued regulations for waste creation and management, creating a need for new practices and policies on how used material is handled. Reversed logistics could simply be described as the process of ensuring value creation spanning over the entire life cycle. The importance to understand and clarify what differences and limitations the adaptation of reverse logistics in the construction industry present, depending on organisation size.
Purpose and research questions: The purpose with this research is to compare how SMEs
and large organisations in the construction industry adapt reverse logistics practices. In order to fulfil the purpose two research questions are designed. The first question process what the major differences are between SMEs and large organisations regarding the willingness to adapt reverse logistics. The second question process what the major differences are between SMEs and large organisations regarding the ability to adapt reverse logistics.
Method: This research used a qualitative approach. A literature review was conducted to
construct a theoretical framework. Ten interviews are conducted with SMEs and large organisation within the construction industry as well an intermediary from a demolition organisation. The interviews are conducted in a semi-structural manner. The interviews are coded in order to define themes and construct a framework.
Conclusion: The willingness to adapt reverse logistics depend on the responsibilities the
companies have. The larger organisations are willing in order to fulfil larger environmental goals and regulations in the industry whereas SMEs want to ease daily operations and do good to the adjacent community. The ability to adapt reverse logistics are affected by the resources and regulations. SMEs have difficulties in adapting reverse logistics fully because of limited resources relating to handling and storing the to-be-reused material. The larger organisations have the resources but a longer implementation route and with larger projects need the clients demand to adapt reverse logistics on project scale.
Table of Contents
1
Introduction ... 1
1.1
Background ... 1
1.1.1
Introducing the Construction Industry ... 1
1.1.2
Introducing Reverse Logistics ... 2
1.2
Problem Definition ... 2
1.3
Purpose and Research Questions ... 3
1.4
Scope and Delimitations ... 4
2
Literature review ... 7
2.1
Introduction to literature review ... 7
2.2
Reverse logistics ... 7
2.2.1
Reverse logistics management ... 8
2.2.2
Reverse logistics drivers ... 9
2.2.3
Barriers to reverse logistics ... 10
2.3
Construction industry characteristics ... 11
2.3.1
Project management ... 11
2.3.2
Supply chain management ... 12
2.3.3
Innovation implementation ... 12
2.4
Organisational size ... 13
2.4.1
Operations management ... 13
2.4.2
Innovation strategies ... 13
2.5
Summary ... 14
3
Methodology ... 17
3.1
Research philosophy ... 17
3.2
Research approach ... 17
3.3
Research strategy ... 17
3.4
Method for data collection ... 18
3.4.1
Document analysis ... 18
3.4.2
Interviews ... 19
3.5
Link between RQs and methods for data collection ... 19
3.6
Approach for data analysis ... 19
3.7
Quality assurance ... 20
3.7.1
Credibility ... 20
3.7.2
Transferability ... 21
3.7.3
Dependability ... 21
3.7.4
Confirmability ... 21
3.8
Ethics ... 21
4
Empirical findings ... 23
4.1
Large organisations ... 23
4.1.1
Reverse logistics practices ... 23
4.1.1.1 Drivers ... 24
4.1.1.2 Barriers ... 25
4.1.2
Adaptation ... 26
4.1.3
Development ... 26
4.2
SME ... 27
4.2.1
Reverse logistics practices ... 27
4.2.1.2 Barriers ... 28
4.2.2
Adaptation ... 29
4.2.3
Development ... 29
4.3
Intermediaries ... 29
4.3.1
Demolition perspective ... 30
4.3.2
Drivers and Barriers from a different perspective ... 30
5
Analysis ... 31
5.1
Theme analysis ... 31
5.1.1
Codes ... 31
5.1.2
Themes ... 31
5.2
Theme 1: Responsibilities ... 32
5.3
Theme 2: Resources ... 34
5.4
Theme 3: Regulations ... 35
5.5
Analysis of the three themes as a framework ... 36
6
Conclusion ... 39
7
Discussion ... 41
7.1
Relevance of topic ... 41
7.2
Managerial implications ... 42
7.3
Limitations ... 42
7.4
Suggestions for future research ... 43
8
References ... 44
Figures
Figure 1 - Link between methods and research questions ... 19
Figure 2 - Template for data analysis, adapted from Creswell (2007) ... 20
Figure 3 - Analysis process ... 31
Figure 4 - Relationships between themes and codes ... 32
Figure 5 – Framework for analysis ... 37
Tables
Table 1 - Keyword search ... 7
Table 2 - Barriers to reverse logistics, adopted from Rogers & Tibben-Lembke
(2001) ... 11
1 Introduction
This chapter introduce the background relevant to the topic and moves on to explain the purpose and relevance of the topic. The research questions are stated in this chapter along with the scope of the research and the delimitations.
1.1 Background
With a growing consciousness for the environment among customers and society, expectations raise for products to not contribute with a negative impact on the environment (Huscroft, Hazen, Hall, Skipper, & Hanna, 2013). In line with the growing awareness for the environmental impact, governments and higher authorities has in the past years issued regulations for waste creation and management, creating a need for new practices and policies on how used material is handled. Apart from the regulations, certain licenses on sustainability becomes standard for many industries, expanding the need of a long term and relevant approach to handle waste and deconstruction material (Chileshe, Rameezdeen, & Hosseini, 2016; Huscroft et. al, 2016). Not only is the increasing demand and regulations a field to control and be aware of, literature suggest green supply chain management to be a raising area where firm might compete (Markley and Davis, 2007; Rao and Holt, 2005; Zhu and Sarkis, 2004).
1.1.1 Introducing the Construction Industry
Across the world, the construction industry generates waste at an enormous rate. Numbers spanning from consuming 40% of the world's total energy, generating 30% of the greenhouse gas emissions and consuming 25% of the harvested wood around the globe (Yuanyuan, Xiaochen, Xiaoyu, Youquan, & Po-Han, p. 152, 2017). These numbers transferred into waste generation results in 20-30% of all material disposed and 45-65% of the waste from the construction and demolition industry ending up in landfills (Banihashemia, Tabadkani, & Hosseinic, p. 2, 2018; Hosseini, Rameezdeen, Chileshe, Ghoddousi & Arashpour, 2017). Summoned up, the construction and demolition industry consume 40% of all extracted raw material and generating 35% of the global waste (Di Maria, Eyckmans, & Van Acker, p. 3, 2018). Continuing with numbers from the construction industry, 13% of the global economy is represented by this sector. These numbers, combined with the major relevance to and connection with other industries, the construction industry is an important field of study and in deserve of attention (Ajayi & Oyedele, 2018; Banihashemia et al., 2018). As described earlier, the need for environmental responsibility among organisations is demanded by both customers and governments. However, the construction and demolition industry has fallen behind other industries regarding environmental actions and sustainability, although being one of the greater industries worldwide. This issue largely emerges from the amount of materials consumed and landfills created (Ajayi & Oyedele, 2018). In order to counteract these major problems with waste in the industry, there has been developments meeting the urgent need for change. High landfill taxes and EU policy presents great contribution; thus, the effort has dominantly been put into downcycling practices. Moving
forward, there is an urgent need to stimulate high quality recycle and reuse throughout the industry (Di Maria et al., 2018). Reusing construction material is in line with the current global trends on circular economy (Govindan & Hasanagic, 2018) . With the environmental focus and industry consumption serving as drivers for circular economy, there is an urgent need for a sustainable tool and solution to serve the construction industry.
1.1.2 Introducing Reverse Logistics
Nearly all the materials used in construction can in some way be recycled, but the recycling is known for being a costly and energy demanding activity (Haas, Krausmann, Wiedenhofer, & Heinz, 2015). One step further from recycling is the reuse of materials. The traditional supply chain does not take into considerations products at the end of their life cycle (Govindan & Soleimani, 2017). To ensure that value is captured throughout the product life cycle, the traditional supply chain is to be completed by Reversed Logistics to create a closed loop supply chain (Govindan & Hasanagic, 2018). Reversed logistics is defined in several ways, depending on the target industry. In construction, reverse logistics is most properly defined as:
How the area of business logistics plans, operates and controls the flow of logistics information corresponding to the return of post-sale and post-consumption goods to the productive cycle through reverse distribution channels, adding value of various types to them:
economic, ecological, legal, logistical, corporate image, etc (Nunes, Mahler, & Valle, p. 3717 2009)
Reversed logistics could simply be described as the process of ensuring value creation spanning over the entire life cycle (Guide & Van Wassenhove, 2009). Transferred into the construction industry, several possible opportunities are provided. Applying and adapting reverse logistics to the organisations, products such as bricks and steel elements from salvaged buildings find new value and are used again in new projects and buildings (Nordby, Berge, Hakonsen, & Hestnes, 2009; Densley Tingley, Cooper, & Cullen, 2017). Reverse logistics also provides an opportunity to both reduce the high amount of new materials consumed and the waste produced in the construction industry. Also, Chileshe et al. (2018) discuss how reverse logistics is the most effective available solution addressing issues with waste and raw material. The main challenge concerning implementation of reverse logistics in the construction industry is the support by stakeholders, as with any upcoming new practice (Nunes et al., 2009). Chileshe et al. (2016) describes that in order to ensure reverse logistics as a well establish practice, the benefits of reverse logistics need to be enlightened and realized. Further on, the first step for an organisation to get interested in reverse logistics is to discover the factors driving the implementation process of closed loop supply chains (Bouzon, Spricigo, Rodriguez, de Queiroz, & Cauchick Miguel, 2015).
1.2 Problem Definition
Previous research examines factors driving implementation (Chinda, 2017; Chileshe et al., 2018) or barriers for implementation (Nunes, et al. 2009; Huscroft, et al. 2013; Hosseini, Rameezdeen, Chileshe, & Lehmann, 2015). There is also extensive research that process the environmental
benefits regarding reverse logistics implementation (Rao & Holt, 2005; Zhu & Sarkis, 2004; Yuanyuan, Xiaochen, Xiaoyu, Youquan, & Po-Han, 2017).
The previous research in the subject show that the construction industry lacks a clear definition and established framework on reverse logistics (Hosseini, et al., 2015). Moreover, how to successfully implement a reverse logistics framework in a construction company as well as the barriers related to implementation has been thoroughly researched. The main problem that is highlighted on why reverse logistics is not as adapted in the construction industry compared to for example the manufacturing industry is that the benefits are not clear for the stakeholders (Chileshe et al., 2016).
Organisational size affects how companies work with innovation as well as how companies apply new technologies and why (Brown and Meng, 2018). Brown and Meng (2018) further discuss that the strategy for implementation must be adapted based on the organisational size. Shelton, Martek, and Chen (2016) further discuss that smaller firms need to be more innovative and stay innovative in order to stay competitive. Larger organisations' can depend more on their size and resources regarding competitiveness.
The complexity for the construction companies is that most projects are unique, and the companies start over with basically every new building. A reverse logistic framework therefore must be generic enough to work for multiple types of buildings and yet clear enough for the stakeholders to see the benefits and not too expensive to implement, which constitutes a big problem. The construction industry varies largely when it comes to the size of the companies as well as the size of the projects, which indicates that the work with reverse logistics implementation should vary according to size of the company as well. Hong, Hammad, and Akbarnezhad, (2019) found that SMEs are more concerned with operation risks regarding technical implementation where large organisation focus more on the implementation challenges. The larger companies have a slower learning curve since they have more employees to educate, therefore implementation takes longer time. For small and medium sized enterprises (SMEs) a big barrier for implementations is the lack of customers demand, and therefor lacks motivation for implementation costs (Hong, et al., 2019).
To conclude, there is a gap in the research regarding organisational size and application of reverse logistics. Because of the previously mentioned big differences regarding organisational size in the construction industry and the lack of a generic and established framework for reverse logistics in the construction industry, understanding how reverse logistics is adapted depending on organisational size is important in order to understand the limitations and possibilities of reverse logistics in the construction industry overall.
1.3 Purpose and Research Questions
The problem definition describes a gap in the existing literature, stating the importance to understand and clarify what differences and limitations the adaptation of reverse logistics in the
construction industry present, depending on organisation size. This outlines two clear topics; Reverse logistics management and organisation size, which results in the purpose of this study:
The purpose of this study is to compare how SMEs and large organisations in the construction industry adapt reverse logistics practices.
In order to fulfil this purpose, two research questions were addressed throughout this study: RQ1: What are the major differences between SMEs and large organisations regarding the
willingness to adapt reverse logistics?
To answer the first research question, a multiple case study was conducted. The case study was limited to the construction of buildings, disregarding the companies that are only involved in property management and reconstruction.
Interviews with employees involved in operations and/or project management within these companies were conducted to answer the RQ. The interviews conducted was based on the same themes and base questions. The interviews were transcribed afterwards. The answers were then evaluated, and cross compared to draw conclusions about the major differences between SMEs and large organisations to answer the RQ.
Based on the answer and conclusion from RQ1, there is a further need to evaluate the ability to adapt reverse logistics in relation to the willingness, i.e. RQ1. In order to completely fulfil the purpose, the second research question is:
RQ2: What are the major differences between SMEs and large organisations regarding the ability to adapt reverse logistics?
To answer the second research question, the interview answers will be further analysed together with our own analysis of RQ1. Also, documents regarding policies and structures of the case companies were examined in order to identify differences and characteristics connected to organisation size. This research contribute knowledge for the client in providing understanding on the barriers to reverse logistics and what to expect if demanding greener construction logistics. Also, as the problem definition states, there is a need to evaluate organisations in the construction industry based on their size, and this study provides deeper knowledge regarding how organisational size impacts strategy adaptation.
1.4 Scope and Delimitations
The thesis is written in the General Management field and aims to define how SMEs and large organisations in the construction industry apply reverse logistics compared to each other. The main focus of the study is to understand the impact that organisational size impact application and management of reverse logistics. As previously mentioned, the interviewees are delimited to companies involved in the construction of buildings, disregarding companies only involved in property management and reconstruction. The companies are also delimitated to companies operating in Sweden. The SMEs are delimitated to companies with a turnover of maximum 50
million SEK. Large organisations in this context is chosen by the biggest construction companies in Sweden regarding turnover in 2018, based on the report from the construction industry of Sweden (Sveriges Byggindustrier, 2019).
To ensure quality in the groundwork only peer-reviewed article was used in the literature review. The journals considered was chosen and delimitated based on impact factor. No article from a journal with an impact lower than 1 was used.
2 Literature review
This chapter provides a scientific foundation to the research problem previously presented. The relevant themes and categories used to address the research questions are presented. The current literature is then summarized and connected to the purpose.
2.1 Introduction to literature review
Based on the research topic and nature of the research questions a systematic literature review approach is chosen. As previously described, in order to ensure the quality of the literature review, only peer-review articles are reviewed. In order to conduct the literature collecting in a systematic way, four targeted journals were used. Construction Management and economics and Journal of operations management were chosen from the academic journal guide (Associations of business schools, 2015). Waste management and Journal of cleaner production were chosen based on the construction topic specifics. All journals throughout the literature review were evaluated based on their impact factor.
As previously mentioned, the targeted journals were used as a foundation. Within the targeted journals further searches were made. The keywords used was reverse logistics, construction and organisational size. Through the articles that were found based on these searches, snowballing sampling were applied, looking deeper into forward and backward citations of the most interesting articles in order to find a larger number of relevant articles. In order to make sure no relevant article was overlooked an additional search was conducted through Web of science. The search terms used are shown in Table 1.
The literature review based on the research topic is categorized into three themes; reverse logistics, construction industry characteristics, and organisational size. As described, we first outline the principles of reverse logistics and how it is used in the construction industry. Secondly, the characteristics of the construction industry is presented and examined in order to create a general understanding of the industry and the management connected to construction. The last theme describes the general differences depending on the size of the organisation. The chapter is concluded with a summary of the crucial aspects to create a foundation for the empirical study.
2.2 Reverse logistics
With the increasing demand for environmental awareness, connected to the great amount of waste created and with no standard procedure for waste management, Reverse logistics has risen Table 1 - Keyword search
a top alternative in the construction industry (Chileshe N. , et al., 2018). Moving away from the construction industry, reverse logistics fulfils the need to for a product or material to capture value over the entire life cycle. Compared to general reuse and recycling of materials, reverse logistics is to be arranged by a sophisticated network in order to facilitate the application (Hosseini, et al., 2015). Over the last ten years, the interest and attention for reverse logistics has seen a significant growth in both academia, i.e. doctoral dissertations, and among practitioners (Huscroft, et al., 2013). Huscroft, et al. (2013) further discuss how reverse logistics are to be used and applied by every actor throughout the supply chain. Reverse logistics has been shown to be useful for organisations of all sizes, if adapted correct.
Not only does the use of reverse logistics provide an opportunity to establish an image as environmentally oriented for the organisation, it also brings several competitive advantages for organisations to differentiate on, such as increasing customer satisfaction, reduced costs and increased revenues (Badenhorst, 2013). When applying reverse logistics in construction, based on Nunes, et al. (2009) definition, a crucial factor is to enhance the entire life span of a product. Reverse logistics in the construction industry starts with the waste from new constructions and demolition. At first, the generated waste should to all extent be re used. The re use could occur in another context or at the same construction site. Significant waste generated at construction sites, such as steel structures and building bricks, could also be re used in other sectors or industries (Nordby, et al., 2009; Densley Tingley, et al., 2017). When the product or material are no longer suitable for reuse, it should be disposed in an environmentally friendly manner (Nunes, et al., 2009).
2.2.1 Reverse logistics management
The technical aspect of reverse logistics is concerned with the re use and arrangement of materials. As of now, there is hard to put such a simple label on the management aspect of the application process. One of the most crucial aspects to ensure quality and a functioning reverse supply chain is to arrange a separate collection (Sobotka, Sagan, Baranowska, & Mazur, 2017). Expanding the number of possible recipients and adding some simple activities on site to get the material ready for further use is key to manage reverse logistics. A successful implementation of reverse logistics is influenced by a number of factors, pointed out by (Chinda, 2017). In order to succeed, managerial support and interest are crucial. Managers handling and working with reverse logistics does not only need to support and be a part of the project, there is also a great need for managers to possess previous logistics experience. This experience is needed to perform the logistical activities effectively. When managerial support and logistics knowledge successfully are combined, the manager in question need to address the workers on site in order to establish an urge for environmentally friendly practices. At last, the management level is of importance as well, since the decisions made throughout the project will affect the outcome (Chinda, 2017; Chileshe, et al., 2016).
Connecting managerial tasks and reverse logistics shows that, except than premier logistics knowledge, skills regarding coordination and strategic planning is of high importance. When
management is evaluated in organisations who successfully adapt reverse logistics, the responsible managers possess great knowledge and proficiency in how to plan the work and processes (Nikolaou, Evangelinos, & Allan, 2013). Since the construction industry is to a large project based, with every new project start requiring up to date evaluation of suppliers and customers, the need of prominent skills in procurement processes also rises (Ajayi & Oyedele, 2018). Reverse logistics comes to play on a project level as well, and with evaluation of previous practices and suppliers to moving forward, managers handling these projects need to plan and work effectively with procurement processes (Ajayi & Oyedele, 2018). Since reverse logistics consists of the re use and proper recycling of used materials, return management plays solid role in the managerial aspect of the practice. Chen, Anselmi, Falasca, and Tian (2017) describes how companies, intentionally or unintentionally, do not give the right management resources in order to develop the right strategies to successfully address return management. Thus, researchers highlight the management challenges connected to reverse logistics. Uncertainty, irregularity and complexity presents challenges hard to handle in an effective manner. On the other hand, organisations further struggle to realize the value and possibilities efficient reverse logistics management provides (Chen, et al., 2017). Further, there is also a growing interest and willingness for organisations worldwide to undertake improvements in their manufacturing processes (Zutshi & Creed, 2015).
2.2.2 Reverse logistics drivers
The willingness to adopt and further implement reverse logistics is primarily driven by a number of driving factors (Govindan & Soleimani, 2017). The factors could onwards be classified into either legal/political or economic/financial. Since reverse logistics puts demand on both customers and suppliers, driving forces also has been identified in terms of customers who tries to establish more environmentally sustainable practices. With customers looking to extend their image and awareness, the need for increased reverse logistics networks with customers arise (Bouzon, et al., 2015). With the raising interest of circular economy, construction firms have realised that the most appropriate tool to create a closed loop supply chain and adopting the organisation to fit a circular economy is the use of reverse logistics (Sanchez & Haas, 2018). The driving forces behind reverse logistics could also derive from market differences. In well developed countries, disposal in conventional landfills and purchase of new raw material is expensive, which drives the process of re using and recycling (Gajendran, Brewer, Gudergan, & Sankaran, 2014).
Trying to connect and finding the link between the drivers and barriers to reverse logistics is of great importance in order to be successful (Govindan & Bouzon, 2018). Govindan and Bouzon, (2018) continues with describing drivers as either internal or external motivational factors. The drivers are considered to lay the foundation to why the organisation chose to pursue reverse logistics practices. Since the construction industry represent an industry with enormous waste rates, the ability to effectively manage created waste has evolved into a criterion of success. Organisations adopting their strategies to fit the need of recycling and re use achieve great
success. The reduction of waste and effective handling then motivates organisations to adopt reverse logistics to stay competitive and successful (Sarkis, Gonzalez-Torre, & Adenso-Diaz, 2010; Ajayi, et al., 2015).
To conclude and summarize the drivers of reverse logistics, Osmani, Glass, and Price (2008) presents the architects role in reducing waste in the construction industry. As previously mentioned, the main categories of drivers for reverse logistics are legal/political and economic/financial. If the architectural phase of the building process would take the use of future reverse logistics into account, a long-term satisfaction of the drivers would be fulfilled.
2.2.3 Barriers to reverse logistics
Compared to the traditional demolition of old or salvaged buildings, the implementation of reverse logistics requires a sophisticated model for deconstruction in order to close the supply chain (Guide & Van Wassenhove, 2009; Chileshe, et al., 2018). Further, this presents the need of some drastic changes in conventional practices regarding the demolition phase. In order to establish the urge for environmentally sustainable practices, an organisation wide awareness is needed to create results. Lingard, Gilbert, and Graham (2001) discuss how goal setting could counteract the resistance from worker not willing to participate in practices connected to their own win. As previously described, reverse logistics is primarily about re using materials and capturing value. With the construction industry handling long lived projects, quality is a grand matter. A barrier to use recycled material from old building is the quality factor. The inconstant quality hinders organisations to more heavily rely on components previously used. This also dampers the popularity and demand for reverse logistics (Chileshe N. , Rameezdeen, Hosseini, Lehmann, & Udeaja, 2016b).
Evaluating barriers to reverse logistics from an organisational side points towards the support from top management (Chileshe, et al., 2016). With reverse logistics considered a fairly new practice, the lack of organisational support could easily occur. Since the benefits of reverse logistics being vaguely described and presented in literature with empirical evidence, the argumentation for support falls behind (Chileshe, et al., 2016). In a recent study, Hammes et al. (2020) presents barrier in different cultures. A common issue and barrier to reverse logistics is the financial support. Reverse logistics require major investments in order to make it functional. Further, some cultures do not take the social and environmental responsibility serious enough to facilitate effective revere logistics practices (Hammes et al., 2020).
To sum up the discussed barrier to reverse logistics, (Rogers & Tibben‐Lembke, 2001) presents eight major barriers in Table 2. As presented, the barriers span from pure technical issues such as the lack of logistics systems sophisticated enough to facilitate reverse logistics, to organisational barriers as company policies preventing effective or efficient adaptation of reverse logistics (Rogers & Tibben‐Lembke, 2001).
Table 2 - Barriers to reverse logistics, adopted from Rogers & Tibben-Lembke (2001)
2.3 Construction industry characteristics
The construction industry is a project-based industry. Projects in the construction industry are often of high-value and long duration (Tukel & Rom, 1998). The construction industry is known for being slow-moving in adapting new ways of working and improving performance (Hong et al., 2019). The majority of the organisations’ in the construction industry over the globe are SMEs (Meng & Brown, 2018). The construction and demolition industry consume 40% of all extracted raw material and generating 35% of the global waste, being one of the least environmentally friendly industries (Di Maria, Eyckmans, & Van Acker, 2018). In Sweden the construction industry is responsible for 20% of the total greenhouse gas emissions (Dubois, Hulthén, & Sundquist, 2019).
Nearly every single construction project is unique. The projects are designed as well as produced according to the clients wishes. This is often described as one of the reasons to why the construction industry is known for its low performance, because it is difficult to apply and implement strategies, ways of working and models that can be applied to each different construction project(Hong et al., 2019).
2.3.1 Project management
In the construction process there are several steps involving multiple disciplines. The process is typically as follows; pilot study, design phase, execution phase and the closing phase (Projektledning, 2019). Architects, construction engineers, HVAC engineers and craftsmen are some of the disciplines involved in all or some of the phases. These disciplines are often from different companies and consults working together. However, larger companies could have an architectural department, a construction department, HVAC department etc internally. With every new project the project management and contexture differ depending on the nature of the project, the size of the project, and the client (Sexton, Barrett, & Aouad, 2006). Smooth handovers between the disciplines and the client are very complex because of all the different key players, the large amount of information a construction project contain, and the many different software’s used.
Barrier Percentage of respondants
Importance of reverse logistics relative to
other issues 39,90% Company polices 35,40% Lack of systems 35,10% Competetive issues 32,10% Management inattention 27,30% Personell resources 19,30% Financial resources 18,90% Legal issues 14,10%
2.3.2 Supply chain management
Supply chain management within the construction industry is about creating value for all disciplines involved during the construction process all the way to the end customer (Markley & Davis, 2007). Coordinating activities and deliverables within the organisation as well as between the different actors involved throughout the process characterizes a good supply chain management (Wibowo, Elizar, Sholeh, & Adji, 2017). Rao and Holt (2005) show that a well-functioning supply chain, especially a green supply chain, increase competitiveness and economic performance (Rao & Holt, 2005). The green supply chain is based on the 6R principle; reduction, reuse, recycling, recover, redesign and remanufacturing which can all be applied in the construction industry (Govindan & Hasanagic, 2018). Zhu and Sarkis (2004) show that organisational size does not play a significant role in the performance benefits of green supply chain management. The larger organisations do have extra resources; however, these do not stand in direct relation to the performance benefits (Zhu & Sarkis, 2004).
According to Williams (2016) meeting costs and delivering on time measure success together with performance. As previously described, the construction industry is known for poor performance. Some claim that the different actors involved in the many different phases are the problem. The lack of communication, efficient handovers and transparency in the construction supply chain are observed throughout the construction process. Research show that less than 40% of the deliveries to a construction project is delivered at the right time, the right amount and in the expected condition (Dubois, et al., 2019).
2.3.3 Innovation implementation
In the construction industry, several different strategies for innovation implementation has been developed. The general focus in these strategies is to combine the industry specific requirements and technology with general managerial tools (Murphy, Perera, & Heaney, 2015). Murphy, et al. (2015) further describes that appropriate strategies for implementation of innovations in construction is necessary because of the nature of the industry, with customers demanding complex buildings with sophisticated integration of technology. Implementation processes in construction are also affected by some factors connecting to the organisation. Regarding the organisational culture, a “no-blame” culture allowing for new, innovative ideas has a positive effect on the implementation process. Also, there is a need for the organisation to devote more resources to developing the managerial and technological knowledge and skills within the firm (Ling, 2003).
The construction industry is integrated with several different actors throughout different sectors. With diverse projects providing different contexts in which innovation is implemented, the challenges but also the outcome of the same implemented innovation, can and will vary depending on the context (Harty, 2008). In SME, the general greatest challenges when implementing innovation are concerned with client demand and financial resources (Hong et al., 2019). To reach a successful implantation, the client needs to be addressed and in order to fulfilled that, the
benefits of the innovation must stay clear to all stakeholders throughout the project (Arnold & Javernick - Will, 2013). To sum up, there is a need to cross the organisational boundaries to successfully implement innovation. Since the implementation will affect both practitioners and top management, collaboration combining the managerial skills with the contextual expertise from practitioners creates a foundation for successful implementation (Kokkonen & Alin, 2016).
2.4 Organisational size
SMEs represent the majority of the players in the construction industry over the world. In the UK 99% of the construction firms are SMEs and they take on over 50% of the industry workload (Barret & Sexton, 2006; Dainty, Ison, & Briscoe 2005). In Australia SMEs represent 98% of the construction firms and 77% of the industry value (Gajendran, Brewer, Gudergan, & Sankaran, 2014).
Acar, Koçak, Sey, and Arditi (2005) discuss the problem with research related to organisational size as not having a clear definition on what constitute a small organisation (Acar, et al., 2005). In this context SMEs are defined as organisation with a turnover of 50 million SEK or less. Acar, et al. (2005) further argues that defining organisational size by production value instead of employees paints a more reliable picture since it mirrors final value of a projects including subcontracted work.
2.4.1 Operations management
In SMEs the decision-making power mostly lies with one person in a high position, for example the CEO or founder of the company. Depending on how big the SME is and if they operate in all parts of the construction industry or not there will usually be middle management in charge of their own areas. For example, there will be one person supervising the HVAC employees, one supervisor for the craftsmen etc. The majority of the personnel are involved throughout the project. It might be beneficial for the SMEs to bring in external resources for some areas of projects instead of having full-time personnel (Sexton, et al., 2006).
In larger organisations in the construction industry there’s a clearer division into different responsible areas and smaller project groups within these areas. Larger organisation commonly has multiple discipline divisions within the company. A large organisation can have one department each for architecture, engineering, landscaping etc. Within these divisions there’s commonly one supervisor for each department. There are also project managers for each project and then employees depending on their areas of expertise (Sexton, et al., 2006).
2.4.2 Innovation strategies
SMEs are often slower in adapting new innovative technologies and usually implement them to a lesser degree than larger organisations (Acar, et al., 2005; Hånell, Nordman, Tolstoy & Sharma, 2018). In small project-based organisations such as SME construction firms adapting new technologies and ways of working are often more of a survival tactic and staying competitive rather than focusing on growth itself (Barrett & Sexton, 2006; Teriö & Kähkönen, 2011).
Gajendran, et al. (2014) claims that SMEs constantly need to scan the market environment for changes and develop strategies in order to stay competitive through those changes (Gajendran, et al., 2014). If an innovation strategy is adapted to a large extent in the larger organisation, then it’s more likely for SMEs to adapt the same innovation (Hong et al., 2019).
Hong et al. (2019) further discuss the project size as one of the biggest drivers for adapting innovation strategies since the project size affect the extent of use. Large organisations tend to have more complex and bigger projects especially in the construction industry. In the larger and complex projects innovation strategies will provide the most benefits because of the simplification and saving in detail (Hong et al., 2019).
2.5 Summary
The literature review discusses the concepts reverse logistics, construction industry characteristics, and organisational size.
The construction industry is a project-based industry. Almost each construction project is unique, time-consuming and of high value. The industry is known for being slow moving regarding innovation and with low performance. The vast majority of the actors over the world in the construction industry is SMEs. Research show that large organisations implement innovative solutions and technologies to a bigger extent because of them often having larger and more complex projects demanding simplifying solutions. However, SMEs implement innovative solutions in order to stay competitive when the market environment change. In other words, larger organisations need to have implemented an innovative solution or technology to a big extent in order for SMEs to follow.
Reverse logistics in the construction industry is concerned with closing the supply chain loop and capturing value throughout the entire life cycle of the products. Barriers and drivers for implementing reverse logistics connects to customer demand, organisational competence and financial invectives. In order to effectively pursue reverse logistics in construction some common managerial skills are required. Logistics knowledge, operation coordination and manager support are all crucial managerial factors to fully benefit from the implementation.
To conclude, the literature review, together with the introduction, presents a general understanding of the current situation. Literature describes and emphasizes that organisations within the construction industry are very dependent on their size. Decision making and strategy are different depending on which organisation that is analysed. Further, literature has examined how the organisational size in relation to how well companies in the construction industry adapt and use innovation strategies in their business. In order to reach the higher environmental goals and guidelines that are set from both governments and customers, one innovation tools suggested is reverse logistics. Reverse logistics has been described as the premier path trying to work towards a circular economy. By re using and sustainably recycling products that would been disposed as conventional landfill, value of the entire life cycle is captured. Thus, there is no current literature or study examining the effect of organisational size in relation to reverse logistics
practices. As described, there are comprehensive literature highlighting the importance of organisational size, and on the other hand reverse logistics. There are yet no studies combining these two perspectives with the goal to examine the differences between large organisations and SMEs in the construction industry regarding the use of reverse logistics. Looking at a new innovation tool, the first step for an organisation is to adapt it. This highlights the importance of this study with the purpose:
The purpose of this study is to compare how SMEs and large organisations in the construction industry adapt reverse logistics practices.
3 Methodology
This chapter describes the combination of methods used and define the research philosophy, approach, strategy, data collection and further discuss the quality assurance of this research. The chapter is concluded with the discussion of the ethical implications of the research.
3.1 Research philosophy
The ontology relating to this research is relativism with a social constructionism epistemology. The relativism ontology position is that there’s multiple truths and that the facts depend on personal viewpoints that varies from person from person. The social constructionism epistemology view states that reality and truth depend on viewpoints and people rather than objective factors and therefore it is more important to evaluate people’s opinions and experiences of a situation instead of the situation itself. The ontology and epistemology determine the research strategy as well as the aim of the study itself. Together they affect the methods, data collection and analysis of the data which is why this is important to know as the study moves forward (Easterby-Smith, Thorpe, Jackson, & Jaspersen, 2018).
The methodology of the project is to conduct interviews with organisations of different sizes in order to retrieve rich data and from there induce ideas. There is a need to understand and integrate perspectives from the stakeholders in order to understand the reverse logistics in construction concept as a whole. The research will at the end generate a theory on the relations between organisational size and reverse logistics. We will, based on these different components use a social constructionism approach (Easterby-Smith et al., 2018). This fits the purpose of the research since we want multiple data sources to understand implementation as a process depending on stakeholders’ perspectives.
3.2 Research approach
A qualitative approach will be used throughout the project. The study will take an inductive research approach. The inductive research approach is characterized by beginning by collecting data regarding the topic in question. When a fair amount of data has been collected, the data is analysed to find patterns and form a workable theory. Inductive research moves from data to theory (Ketokivi & Mantere, 2010).
The research will generalize from data to theory and the data will mainly come from multiple case studies, in line with the inductive approach. Throughout the study comparison regarding the different organisational sizes will be key.
3.3 Research strategy
We will answer the research questions using triangulation method in form of document analysis and interviews in order to make sure all perspectives are processed. By using triangulation, we can ensure the validity of the research and make sure that the results can be generalizable. The
study will be a multiple case one. The research questions are designed to compare organisations way of working depending on size, which is why we need to research multiple cases in both SMEs and large organisations.
The organisations considered for the interviews are based on the size regarding yearly turnover. The size was defined based on turnover because we feel that this reflects the size of the projects better than defining size based on number of employees. Moreover, it’s the value of the projects that is interesting and how they affect the organisation within the companies rather than how the number of employees affect the company organisation. In this research it is the size of the projects that is most important because it’s there the innovative solutions mainly are used. As previously mentioned, the samples were chosen through the largest organisation in Sweden working with total construction. Because the construction industry is a project based industry it’s difficult to compare based on the work the companies do since the parameters vary greatly. The representative samples are from the largest construction organisations in Sweden because they work with projects roughly the same size instead of parameters and therefore making the results comparable. The same goes for the SMEs.
We have used a non-proportional stratified random sampling strategy. The interviewees within the organisations are involved in material handling and planning and/or the logistics at the building sites as well as EHS (environment, health and safety) managers. From each organisation two interviews are conducted to make sure different viewpoints are evaluated. Even though the Swedish construction industry is mainly SMEs and therefore a bigger population, the organisation of the larger organisations is complex which is why we have the same sampling size of organisations regardless of size. Because the SMES usually only have one employee with the overview on the matters regarding reverse logistics, only one employee is interviewed since more would be irrelevant.
The snowball sampling strategy was also included as the respondents referred us to a demolition representant who could provide the perspective from after the construction process.
3.4 Method for data collection
As previously described, we will use triangulation in the forms of document analysis and interviews.
3.4.1 Document analysis
The document analysis is used in order to build a good knowledge foundation to understand the current situation. It is also important to understand and benchmark different definitions of the concepts reverse logistics, construction industry characteristics and organisational size.
The document analysis will also be used to understand the organisation of the companies and if there’s any framework for how they work with reverse logistics and/or implementation of innovative strategies in general.
3.4.2 Interviews
The interviews conducted followed a case method approach since a small number of organisations will be processed. There were 10 interviews in total. Three of the interviews were with SMEs and three large organisations with two interviews with each organisation. During the interviews some of the interviewees recommended us to also talk to a specific demolition firm that are engaged in reverse logistics which we added as the 10th interview. In the large organisation we have
interviewed two employees per organisation. In the SME organisations we have only had one interviewee. In the SME organisations we have been in contact with there’s usually around 10 employees and mostly just the CEO who has the strategic responsibility.
The interviews were constructed in a semi structural manner in order to make sure that the interviews follow the specific theme but also to make sure that the interviewee can add relevant information outside of the interview questions.
The interviews were recorded and transcribed after they were conducted in order to avoid misinterpretations and misunderstandings by being able to revisit the interviews. The semi-structured interview technique helps to avoid bias in the form of leading questions. Both authors were present in all interviews to avoid bias and misunderstandings.
3.5 Link between RQs and methods for data collection
Both research questions will be answered using the triangulation technique using document analysis, interviews and observations.
Figure 1 - Link between methods and research questions
3.6 Approach for data analysis
Figure 2 - Template for data analysis, adapted from Creswell (2007)
The document analysis is divided into key words and concepts which are further defined into codes. In order to be able to analyse the data collected through the interviews all the interviews are transcribed. After each transcription we go through the interview again to find codes through the interviewees sentences and key words used. The codes determined are then analysed and categorized into themes. The themes are then connected and analysed to the literature reviewed in chapter two.
3.7 Quality assurance
For this study, our goal is to ensure that all collected, presented and analysed data is reliable. In order to make sure that trustworthiness is reached and that the conducted research is of high quality, we use the four criteria for establishing trustworthiness, presented by Guba and Lincoln (1985). Credibility, transferability, dependability and confirmability will all permeate the study and our research process. These four criteria will be described down below for detailed procedures of fulfilment. Criteria to ensure the quality of the conducted literature review have also been set. All the analysed articles are published in peer reviewed journals. Mainly, the articles are published in journals from the ABS-list (Cremer, Laing, Galliers, & Kiem, 2015) and have a rating at 2 or above. Some exceptions for the ABS-list were made, but these articles were found from analysing backward and forward citations of high-quality articles.
3.7.1 Credibility
Credibility refers to what extent the findings and result of the study are truth and reliable. The degree of credibility is determined by how well the researcher's representation fit with the respondents view of the case. Credibility could also be presented as internal validity (Guba & Lincoln, 1985). Guba and Lincoln (1985) further suggest activities to undertake in order to reach a higher degree of confirmability. In this study, we have used peer debriefing and triangulation. During several set stages during the research process, the study has been evaluated and discussed
by peers. Also, to extend the peer debriefing, a rotation among whose assesses the study has been conducted. Triangulation refers to the use of different data collection techniques and sources, this to provide different viewpoints of the cases. In this study, we conducted interviews and document analyses to create a holistic view. Also, we triangulated sources by asking the same questions and discussing the same themes with different respondents from different organisations. Thus, we are not able to achieve prolonged engagement through the process due to time limitations. Prolonged engagement in the topic or the case will raise the credibility even further.
3.7.2 Transferability
The second criteria Lincoln present in order to reach trustworthiness is transferability. Transferability is described as to how well the findings of the study could be transferred into other context by providing a thick description of the research process (Easterby-Smith et al., 2018). Throughout the study, we have made clear descriptions of all decision-making. Our description of the selected case, companies and respondents are rich in information which allows to be transferred into other cases. While providing these deep and thorough description, we allow generalization of our results (Guba & Lincoln, 1985). Since the purpose is to examine the effect of organisational size when implementing and adopting reverse logistics, we believe our findings are able to transfer to other contexts than the construction industry because of our clearly stated assumptions and thick descriptions of the decisions and results.
3.7.3 Dependability
Dependability refers to what extent the study presents a logical and clear research process that could be repeated, in other words, that the findings are consistent and could be repeated (Guba & Lincoln, 1985). In this study, we describe our process clear and try to state a clear path for the reader to follow. All the steps in the method are described to provide a path that could be reproduced. Regarding the development of the conclusions, we try to provide a stable structure that is easy to follow.
3.7.4 Confirmability
In order to establish and fulfil the last of Guba and Lincoln (1985) four criteria to assess trustworthiness, confirmability, the study need to clearly be shaped by the respondents and not influences by our own motivation, interests or bias. Confirmability is established when credibility, transferability and dependability all are achieved (Guba & Lincoln, 1985). For this study, we have described and argued objectively for the choices made regarding interpretations, conclusions and analysis throughout the entire study. To ensure that the reader understand how and why certain choices were made, we try to back up all choices with solid and trustworthy data.
3.8 Ethics
When conducting research, it is important to act ethical and respect both the respondents and participants of the study, but also the research community (Easterby-Smith, et al., 2018).
Research ethics could also be described from two perspectives: the ethics connected to the respondents and the ethical implications regarding the result of the study.
In order to ensure that research ethics were followed, all respondents participating in this study is anonymous. Prior to the interview, the respondent was informed about their rights regarding the interview. The respondent participated on their own will and always had the option to quit and/or not answer certain questions. No trace is able to be find in order to identify the different respondents. To ensure that the answers were as honest and true as possible, we started each interview by informing that all information that they share with us is confidential. The organisation that the respondent is representing is also confidential and no trace could be found there either. The documentation of the interviews was archived by us to make sure that no outside part could access confidential information. By respecting the privacy, we were able to receive honest answers leading to the conclusion of this study. Also, documents and further shared information were used in a way that no one except us had access to this.
Regarding the result of our study, there are so me ethical implications. The result shows that some organisations do not take their full responsibility regarding the waste that they create. It is prominent that the majority of the large organisations does not have the will to adapt new innovative practices to their organisations, with the fear of financial setbacks. From an ethical point of view, this is troubling since the SME within this industry rely on the larger organisations to move first and show the industry what it takes to be sustainable.
4 Empirical findings
This chapter divides the empirical findings into large organisations, SMEs and intermediary. The large organisations and SMEs are then presented under the category’s reverse logistics practices, drivers, barriers, adaptation and development. The findings from the intermediary conclude the chapter to provide a different perspective.
As described, 10 interviews were conducted with a total of 7 organisations. From large organisations and SME there was 3 companies represented from each category. Besides that, a demolition representative was interviewed and further described as an intermediary. Error!
Reference source not found. presents the interviews.
4.1 Large organisations
In total, 6 interviews have been conducted with 3 different large organisations in the construction industry. The interviews are presented in Error! Reference source not found. To complete and cross check the information gathered, policies and structures for practices. These document studies consist of internal documents provided by the organisation itself, but also independent policies, goals and measures provided by external companies and governments.
4.1.1 Reverse logistics practices
The current practices for reverse logistics among large companies are to a large extent influenced by laws and goals. It is a clear pattern in the way that large organisations are taking care of the waste and trying to re use products from old construction sites. The organisations do in many cases have main responsibility for the waste, and if not, contracted demolition firms are taking care of the waste. Common for all interviewed companies are that they all follow certain certificates regarding CO2 emissions of the building process. Also, there is a plan developed by the common construction industry describing CO2 goals until year 2045 (Fossilfritt Sverige, 2019). In 2045, the construction industry in Sweden are supposed to have net zero CO2 emissions. Document studies of this roadmap shows that the industry in general are aware of the need for a
Interview number Company number Category Duration
1 1 Large 60 min 2 1 40 min 3 2 Large 45 min 4 2 55 min 5 3 Large 60 min 6 3 40 min 7 4 SME 45 min 8 5 SME 55 min 9 6 SME 55 min 10 7 Intermediary 45 min
strategy towards a circular business. These initiatives are well known by the industry, since all of the respondents has mentioned and described parts of this plan that they use in specific. This plan also sets a standard for how fossil free competition within the construction industry are to be conducted. Further, this plan emphasizes the importance of a life cycle perspective on the entire building process. All stages of the building process are to be evaluated and planned in a way that promotes re use and sustainability. Apart from the construction industry, this plan highlights a number of calls to the government. These calls highlights points that are in need of development in order to reach these goals by 2045. The construction industry stipulates that actions are required to push this development further. Incentives for energy efficiency, re classification of waste that enhances re use and a broader visibility of the supply chain are some of the major requirements formulated in order to fulfil and promote a circular business model. Respondent 4 further described that certain tools for measuring circularity could be used. When studying these tools in deep, it is clear that it requires resources and great organisational understanding. Respondent number 5 described how the organisation worked after a structure to control the waste and emissions. This structure consisted of three stages that were most concerned with CO2 emissions, but the last stage described that the organisation has a responsibility towards its suppliers as well. Regarding structures and networks connected to reverse logistics practices, respondents of company number 2 highlighted how they try to work with previous projects as a reference to succeed in the future. For example, if a whole community are rebuilt, the old material is gathered and refinished to create an own storage for this next project. After demolition and material check is done, no new material is allowed to use. The structure of this are dependent on previous similar projects that have worked out well and lessons have been learned. Both interviews and document studies show that further development of reverse logistics practices in large organisations are dependent on certain drivers and hindrances.
4.1.1.1 Drivers
The factors driving the adaptation and use of reverse logistics in the large organisations has one clear point in common: Client demands. All of the respondents described how the industry is price and customer orientated, and if the customer wants new products, the customers gets new products. Respondents of company number 2 referred to projects where the customer asked to keep the old windows. After refurbishing and testing, the old windows were integrated into the new building. In this case, respondents described how the planning of the building were crucial. In order to fit the windows into the new building, the building had to be adapted to the windows. They further highlighted the need of collaboration between the client and their company in order to succeed with this project. A crucial driver that was mentioned by all respondents, is the fact that adapting reverse logistics to your business creates a competitive advantage. Using reverse logistics boost the image of the organisation by being in front when it comes to environmental practices and tools. For large organisations, respondent number 3 highlighted that new employees and university graduates are highly aware of all aspects of a company. In order to stay
attractive to these groups of individuals, the organisations need to show their will to be environmentally aware in all aspects.
Respondent number 4 mentioned another aspect of the client needs connected to the drivers of reverse logistics. During the last 2 years, the have been a rapid increase in the demand for re used products among customers. The respondent further described this as a result of the environmental debate and transparency among the construction industry. Further described, the respondent highlighted that this goes in line with the goals and laws of the government. However, the geographical location is a driver as well, according to respondent number 5. Depending on different rules and laws in different geographical locations, the use of reverse logistics is driven. As described above, the general laws and goal set by the government together with the construction industry all contributes with driving the development forward.
4.1.1.2 Barriers
Even though all respondents mentioned both client demand and regulations/laws as a driver for reverse logistics, a majority of them, company 1 and 2, described it as barriers as well. Client demands are needed for the companies to apply reverse logistics in full, but since a lot of clients still are most concerned about the price, re used products comes in second or even third. Connected to money, the cost of adapting and using reverse logistics in these large organisations is a barrier as well. All respondents describe that the price of re used material and products are too high to use. Company 2 however, further described that the lack of incentive for using recycled material pushes organisations to keep buying new products instead. As previously described, there are certificates for CO2 friendly buildings. However, there are yet no certificate or standard that states how well a new construction are made up of recycled or re used material, described by respondent 4. By studying reference projects outside of the respondent companies, projects where the classic split between material and labour, 70% and 30%, were shifted has been found. When discussing this with respondent 4, it was suggested that development is to be made in how labour cost then can be cut if working with re used material.
Regarding the products that are used in construction, all respondents described how the quality of re used products is a barrier to reverse logistics. At the moment, all warranties carried out in construction projects are based on years. When stating the warranty of a project, the organisation has a responsibility to hand the same warranty to the entire project, not only the new products. Further, respondents 3 and 4 emphasized that the inconsistent flow of material makes it difficult to plan with re used products. Also, the high technical standard of new products makes it difficult as well. Thus, as described earlier, some organisations have found ways were material storages are built up to promote reverse logistics. The respondent also stated that a sophisticated network between organisations could facilitate this even more. The material coming in are also difficult to value when stored, per respondent company 2. When acquiring material that first were considered waste, it is hard to value this when it comes to accounting.
