Reverse logistics management and its environmental
impact: the return transportation in Sweden
Paper within Civilekonom MSc 30 cr
Authors: Debora Johansson
Jonathan Nordgren
Tutor: Elvira Ruiz Kaneberg
Acknowledgements
Many people have participated and contributed into the development of this thesis. We would like to aim a big thank you to all interviewees and to all companies for their inputs, time, welcome and new visions. Without your participation and contribution, this thesis would not have been possible.
We would also like to express how thankful we are to our tutor Elvira Ruiz Kaneberg, who has been valuable for the development of this thesis. Your feedback and input have been taken into account and highly appreciated.
May 2020, Jönköping
Master thesis in Business Administration – Management
Title – Reverse logistics management and its environmental impact: the return transportation in Sweden
Authors – Debora Johansson Jonathan Nordgren Tutor – Elvira Ruiz Kaneberg Date – 2020-05-18
Key terms – 3PL; Reverse logistics management; Return transportation; Environmental impact; Product returns
Abstract
With product returns, reverse logistics management is causing a big environmental impact, especially product returns from online shopping provided by the third-party logistics (3PL) companies. There is a need for understanding in what ways 3PL companies could reduce the environmental impact and at the same time stay competitive. This thesis qualitative method is based on semi-structured interviews with the objective to highlight the management of return transportation. Specifically, the challenges for third-party logistics (3PL) companies to reduce their environmental impact by managing the transportation of product returns and keeping their economic performances. Supporting the study, 3PL companies and end-customers, in Sweden, proposed long-term organized advice (as additional service) to the 3PLs customers for helping them reducing cost and their impact on the environment. The study suggested that 3PL companies are required to emphasize the management of transportation agreements, not only to include adequate economic clauses but also the terms for achieving environmental performances. In the long-term, these agreements will allow 3PL companies to achieve their environmental performances and remaining competitive. The study recognized that implication for managers might be, for them to keep updated on environmental changes applying that customer’s new demands could require a different way (than today) for managing their logistics organizations. For example, these changes could have great implications for early and consistent managerial actions, impacting the reverse logistics processes, like the transportation of the returned products.
Table of Contents 1 Introduction 1 1.1 Background 1 1.2 Problem statement 3 1.3 Purpose 4 1.4 Research questions 4 1.5 Delimitations 4 1.6 Definitions 5 2 Frame of reference 7 2.1 Third-party logistics 7 2.2 Reverse logistics 13 2.3 Return transportation 16
2.4 Conceptual framework summary 21
3 Method 23
4 Empirical findings 36
4.1 3PL companies 36
4.2 End-customers 44
5 Analysis 51
5.1 The reduction of return transportation 51
5.2 The challenges of return transportation 53
5.3 The management of product returns 55
5.4 Development of the conceptual model for reverse logistics 57
6 Conclusion 59 7 Discussion 61 7.1 Theoretical contribution 61 7.2 Managerial implications 61 7.3 Ethical implications 62 7.4 Limitations 62 7.5 Future research 63 References 64
Appendices 75 Appendix A 75 Appendix B 76 Appendix C 77 Appendix D 77 Appendix E 78 Appendix F 80 Appendix G 80 Appendix H 82 Appendix I 83
1
Introduction
1.1
Background
Third-party logistics (3PL), is a significant function for logistics companies, but also tends to denote a big share of the companies environmental impact. A 3PL provider is an external company, providing all logistics activities or parts of them for a customer (Lieb, 1992), one example of an activity could be the product return management. Transportation providers have the potential to make 3PLs more environmentally friendly. Since online shopping, in general, has increased over the last decade (E-barometern, 2016), it has, therefore, placed a great demand on 3PLs and their product return management and return transportations (Min & Ko, 2008). As displayed by Hjort, Lantz, Ericsson, & Gattorna (2013), has the increase in online shopping also increased the number of returns. It is common that end-customers send back the products ordered online that do not fit, do not meet their expectation, or the ones that not just fall in line with their taste preferences (Norrström, 2018). This phenomenon could be known as “return culture” (Norrström, 2018, p.1) causing high amounts of return transportation, Which is the traveled route the returned product is transported from the end-customer to third-party logistics (3PL). The end-customer is referred to a person who has purchased a product online and decides to return it. Further, the end-customer has set higher requirements on the companies regarding product returns ordered online (Fredriksson, Hedin, & Reventberg, 2015). This makes the end-customer a major reason why the number of return transportations is high. This appearance is common all over Europe but especially in the northern parts (Ecommerce-Europe, 2016). In Sweden the return from e-commerce is on average 22% according to Norrström (2018, p.1) in an interview with a professor of sustainable logistics. Further, Norrström (2018) displays that returned products affect the environment to a great extent. In fact, the high number of returns and the amount of packages within online shopping makes them a bigger threat to the environment compared to the physical store (Handelstrender.se, 2016). Furthermore, the CEO of the Swedish fashion distributor Boozt.com claims in an interview that even though they have high numbers of returns on their products, the action of charging fees for returns is not an option (Folkö, 2018). The CEO states:
“If you do not have free returns in the fashion market, then you will not get any customers.” (Folkö, 2018, p.1).
With packages being shipped back and forth more than necessary, the impact on the environment is major, and according to Statistiska Centralbyrån (2019, p.1), the greenhouse gas emission has been fluctuating, but between 2014 and 2017 it increased and was approximately 90 000 kt eq (kilotons of carbon dioxide equivalents). Furthermore, the approximately 90 000 kt eq is only covering gas emissions from Swedish consumption such as online shopping, physical shopping, public sector, and investments and was in total an increase with 6% between 2014 and 2017. Worldwide, this is an issue as well, according to The Carbon Footprint of Global Trade (2016) will the global emissions nearly four double it sizes in the upcoming 40 years calculated from 2010. These emissions will only be generated from freight and no other factors, which is strongly connected to the activity of online shopping and product returns. The reduction of the environmental impact in regards to return transportation will not be made by itself. Therefore, it is important to interrogate what kind of actions 3PLs address to solve this issue towards their customers, where the customer is the company who originally sells the products but has outsourced their logistics functions to third-party logistics. This is important since returns often are offered for free for the end-customer, and with every package shipped back, it affects the environment.
Logistics have become a key driver for economic growth in terms of wealth creation and jobs in today’s society (Ceniga & Sukalova, 2015; Cirpin & Kabadayi, 2015). The scope of services third-party logistics provides to their customers is increasing and they always try to improve their operations (van Laarhoven, Berglund, & Peters, 2000). The importance of cost, quality, and time has been in focus for a couple of years when it comes to logistic services (Göl & Çatay, 2007). Further, Liu, Ji, Xu, & Lu (2019) emphasizes that the actions 3PLs address in order to improve service quality and operational performance is crucial, but improving criterias within time, cost, and quality is no longer sufficient. With a rapidly changing business environment were a bigger focus of becoming more green and improve the environmental impact is important (Lam & Dai, 2015). As the demand for mobility of products has increased in combination with the concern for the environment, this has become a critical success
factor for reverse logistics (Andrade, Lucato, Vanalle, & Vieira Junior, 2013; Centobelli, Cerchione, & Esposito, 2017). Therefore, in practice, decision-makers need to take the environmental aspect into consideration, to fill in the gap rather than just cost-minimization (Mallidis, Dekker, & Vlachos, 2012). Within the area of reverse logistics and freight transportation, in regards to the environment, there are few completed studies (Marchet, Melacini, & Perotti, 2014) and therefore, it constitutes a gap in this area of research.
1.2
Problem statement
The problem with the environmental impact that return transportations create is not stressed enough. Third-party logistics (3PL) that have responsibilities within the reverse logistics must, therefore, mantle the process when improving it, regarding the environmental impact of return transportation (Lam & Dai, 2015). Further, reverse logistics can have some benefits with activities of repairing, remanufacturing, and reselling products, which affect both the financial and environmental aspects positively (Pushpamali, Agdas, & Rose, 2019). The issue with the environmental impact from return transportations regarding e-commerce still stands, where the number of returns in Sweden is on average 22% (Norrström, 2018, p.1).
The reason behind high returns and return transportations is due to end-customers behavior with over-ordering products, this, to find the right color or size and then return the products that are not sufficient (Norrström, 2018). Even though, clothing today is responsible for the greatest number of returns, other product categories also contribute with a high number of returns, which in total adds up to the overall energy usage and emissions caused by returns (Cullinane, Browne, Wang, & Karlsson, 2019). Further on, Norrström (2018, p.1) refers to this phenomenon as the “return culture”. High numbers of return transportations lead to increased emissions from the transports, where the emissions can be a threat to the environment on several different stages and is therefore a crucial part when designing it (Sundarakani, de Souza, Goh, Wagner, & Manikandan, 2010). Even though implementing the environmental thinking into the decision-making process has become a challenge, it has been difficult for over two decades (Choudhary, Sarkar, Settur, & Tiwari, 2015; Wu & Dunn, 1995). The process of implementing environmental thinking has not become easier due to that end-customers are not aware
of the energy usage and the distances returned products require according to Norrström (2018) in an interview with a professor of sustainable logistics.
Further on, since end-customers can return products for free, even though the product itself is free from defects, this makes the impact on the environment crucial, and companies do not want to charge any fees for returns in order to lose market shares (Norrström, 2018). Since the world is changing rapidly, 3PLs need to come up with other solutions to minimize the environmental impact, other than just charging fees for returns, in order to become more environmentally friendly (Lam & Dai, 2015). Governments have implemented rules and regulations covering emission and therefore, it is important as well for companies to include environmental thinking into their decision-making process (Choudhary et al., 2015).
1.3
Purpose
The purpose of this study is to investigate the reverse logistics of 3PLs in their environmental impact. Particularly, the management of the return transportations in Sweden, to reduce product returns ordered online and remaining competitive.
1.4
Research questions
RQ1: In what ways can reverse logistics of 3PL be managed to reduce the environmental impact of return transportation in Sweden?
RQ2: What are the challenges for 3PLs to develop returns in order to minimize the environmental impact of return transportation?
RQ3: In what way could the 3PLs be managed to reduce product returns?
Key terms
3PL; Reverse logistics management; Return transportation; Environmental impact; Product returns
1.5
Delimitations
Product returns from online shopping can affect the environment in several different ways. Therefore, this study will try to show in what ways 3PLs can take action in regards to the returns of products and return transportations in context to the
environmental impact. The return transportation process starts from the end-customer and ends at the 3PL. Beyond this, the reverse logistics chain is all the way from the end-customer to the end-customer, were the 3PL is a part of this process. Anyhow, this thesis will delimit the reverse logistics chain to the return transportation process, the end-customer to the 3PL. But to bear in mind is that there are several other actors included in the supply chain of reverse logistics, such as freight companies and customers to 3PLs. These other actors will not be investigated any further. The reason why the other actors will not be covered is due to, that the context would have been too broad. This since freight companies are specified within just transportation and the reseller (customer) is not the practical actor regarding product returns and reverse logistics. Instead the customer often has input on what to do with the returned products ordered online. The reason behind looking at just 3PLs and end-customers is since the 3PL is the hub between each actor and end-customers is the major factor for product returns, which both will be in focus. Furthermore, the argument for only studying online shopping is due to the bigger amount of impact on the environment compared to physical stores. One could focus on the specific reasons why end-customers return products purchased online, but that will not be in focus. This, since there are several different factors, which could be the foundation for another study. Lastly, all aspects regarding the environmental impact of return transportations are considered to be emissions. This since the topic of emissions and pollution is focused more towards chemistry and the chemical formulas behind it. It is therefore considered to be out of knowledge for the authors to give the formulas and the small differences between emissions and pollution.
1.6
Definitions
The definitions that follow, is based upon academic literature, dictionaries as well as practical webpages to fulfill the aim of increasing the knowledge among these terms. This, to find the definitions most suitable for this thesis. When it comes to dictionaries the Cambridge University Press is chosen, since it is believed to provide the most suitable definitions. The practical webpage provided us with a definition that was within the structure of the thesis and is therefore considered as relevant.
Reverse logistics - The process of implementing, planning and controlling the inbound flow of materials and finished products in an efficient and cost-effective way, from consumption to the point of origin as well as inspect and dispose of information (Rogers & Tibben‐Lembke, 1999; Srivastava & Srivastava, 2006).
Third-party logistics (3PL) - “The use of external companies to perform logistics functions that have traditionally been performed within an organization. The functions performed by the third party can encompass the entire logistics process or selected activities within that process.” (Lieb, 1992, p.29). Furthermore, Coyle, Bardi, & Langley (2003, p.425) describe third-party logistics as someone who, “... performs all or part of a company's logistics functions.”.
E-commerce - The process of buying and selling products on the internet (E-barometern, 2016; "E-commerce," 2020), which are then delivered in different ways to the end-customer (E-barometern, 2016).
Product returns - Appears when the end-customer chose to return the product they do not want, to the company to get their money back ("Product return," 2020). Furthermore, is it a part of the reverse logistics and is a combination of activities such as recycling, refurbishing, and repair as well as waste disposal. While some returned products can be repackaged and sold as new, due to legal or other restrictions, some products cannot be resold as new products, once the product has been returned by end-customers (Stock & Mulki, 2009).
Environmental impact - “The effect that the activities of people and businesses have on the environment.” ("Environmental impact," 2020).
2
Frame of reference
This chapter covers previous relevant literature within the topic of third-party logistics, the reverse logistics, return transportations, and product returns as well as their environmental effect.
2.1
Third-party logistics
In supply chain management, logistics is a function with activities for moving products from one place to another, where 3PLs provide a lot of these services (Sasikumar et al., 2009). While earlier studies and literature have concentrated on users of logistics services, the later studies and literature have shift focus and begun to give attention to third-party logistics service providers. Rapid expansion has indeed taken part in the industry of 3PL, their industry has made a transformation which has created an increasing interest (C.-L. Liu & Lyons, 2011; Marasco, 2008). Hence, the recent growth of third-party logistics providers is partly due to an increasing trend to outsourcing logistics activities as well as pressure on the economic and competitive aspects of a business (Kumar, Muddada, Pandey, Mahanty, & Tiwari, 2013; Panayides, 2007). Since the operation of handling product returns require a special system for tracking and capturing data combined with specialized infrastructure in order to fit equipment necessary for the process of product returns, 3PLs have become a key player in reverse logistics (Sasikumar et al., 2009). The activities of reverse logistics differentiate itself from forward logistics in terms of reusing, remanufacturing, recycling, and repairing returned products (Govindan et al., 2012). This is also displayed in investments where around 42% of all logistics costs are referred to outsourcing costs, both in 2010 and 2011 (Langley & Capgemini, 2011, p.4).
According to Lieb & Lieb (2010a), have 3PLs made important commitments to sustainable developments by their work on reverse logistics practices during the last decade. The concern a third-party logistics should have for their customers applies to environmental performance as well. Therefore, is environmental performance one of the most important decisions made by a 3PL (Rao & Holt, 2005; Seuring, Sarkis, Müller, & Rao, 2008). From a customer’s point of view, having the right third-party logistics, could significantly reduce logistics costs and improve the overall performance (Lam &
Dai, 2015). If 3PLs chooses to highlight sustainability through their communication with their customers, they can use it as a competitive advantage (Krause, Vachon, & Klassen, 2009). It is important to keep in mind that 3PLs are independent enterprises who works on contract with the customers. They do not own any products or services, but they still carry the responsibility of the logistic services (Gardas, D. Raut, & Narkhede, 2019).
When successfully implemented, third-party logistic relationships can give both the 3PL and their customers a competitive advantage in the marketplace. This, by aiming at minimizing the overall cost, as well as improving the profitability on a long-term perspective (Tate, 1996). By finding the right 3PL, a company can improve its supply chain performance and decrease its overall costs (Lam & Dai, 2015). Product returns are one part of the business that often has led to increasing overall costs for many logistics companies. 3PLs has therefore, started to map the process of product returns, which has also created openings for increased convenience when end-customers return products and decrease the overall costs in terms of transportation and warehousing (Min & Ko, 2008).
Third-party logistics and customers
A company can reduce CO2 emissions during the transportation phase by cooperating with a 3PL, as well as minimizing the packaging or use joint distribution (Ji, Gunasekaran, & Yang, 2014). According to Vachon (2007), an important part of the work with green initiatives among companies involved in logistics and transports activities is a collaboration with their customers and suppliers. In order for a third-party logistic provider to take stewardship of their service offerings, they need to collaborate with their customers closely to be able to reduce the environmental impact of the shared logistics activities, for example by together forming new packaging or delivery solutions (Maas, Schuster, & Hartmann, 2014).
Lieb & Lieb (2010b) have examined the evolutionary process of adoption to market prices and service offerings, with the main consideration of collaboration between third-party logistics providers and their customers. Furthermore, they emphasize in their
paper, the gradual increasing commitment concerning environmental initiatives from both third-party logistic providers and customers. A collaboration between these two could according to Ciliberti, Pontrandolfo, & Scozzi (2008) include support on reverse logistics processes and waste management, as well as efforts towards CO2 reduction, and improvement of vehicle fleets. Min & Ko, 2008, p.176) have for instance identified that “… mapping the process of reverse logistics involving product returns to create opportunities for cost savings and service improvements …”, when it comes to the handling of inventories and the warehousing of product returns. Hence, for a third-party logistic provider to be able to reduce the overall environmental impact of logistics strategies by collaborating with their customers, Lieb & Lieb (2010a) have provided a list of areas in which this is possible. These areas are, overall, concerned with helping customer firms to reduce their emission footprint and driving joint energy conservation.
Product returns
Product returns have increased rapidly in the last two decades (Pei & Paswan, 2018). They appear worldwide and the three main drivers are economic, regulations, and consumer pressure (Srivastava & Srivastava, 2006).
Even if free shipping and free return shipping increases the costs for companies, many still provide these services to keep their customers satisfied (Pei & Paswan, 2018). While accepting returns may be harmful to the nature of their business if the returns involve outdated merchandise (King, Dennis, & Wright, 2008), to not accept returns at all may damage customer loyalty (Levy, 2014). This since product returns often play an important factor in customer service (Sasikumar et al., 2009). Furthermore, it is also considered an important part of the relationship between end-customers and companies (Petersen & Kumar, 2009).
For many internet retailer businesses, end-customer returns are regarded as a strategic part of the business, as these are related to high costs and a steady increase of return volumes (Hjort et al., 2019). Returns is a complex process, due to the existence of several reverse distribution channels (direct return to manufacturer versus indirect return to repair facilities), individualized returns with small quantities, and extended order
cycles associated with product exchange (Min & Ko, 2008). The processes of return logistics also lack in terms of forecasts, which means that the chain is activated, first in connection with incoming returns (Tibben-Lembke & Rogers, 2002). When summarizing the complexity of product returns, one may understand, that the product return process is far more complicated than forward logistics measures (Min & Ko, 2008).
Managing the process of product returns typically includes gathering of returned products at selected regional distribution centers or retail outlets, transfer and gathering the returned products at concentrated return centers, the products then need to be recovered or disposed if the products no longer have a commercial value. The process also involves designing and deciding on the right number and location/allocation of the repair facilities for returned products. This, in such a way that total costs of the reverse logistics process which includes both storage and transport costs are minimized. It also means that the capacity of repair facilities is fully utilized and the convenience for the customer who is returning products is maximized (Min & Ko, 2008).
Poor internal and external integrations are creating substantial costs in return management processes (Bernon, Cullen, & Gorst, 2016), while return management that is well-thought-out and well-functioning has several possible competitive advantages (Stock & Mulki, 2009). Being able to handle product returns in a cost-efficient and effective way has increased the interest in return management among companies (Srivastava & Srivastava, 2006).
Product returns are inevitable costs when doing business, which decreases the chances of cost savings. Since we live in a time where the cost pressure is present in the logistics industry, more and more third-party logistics providers have started to exploit this situation for their advantage, which means that they have begun to offer product return management in a more cost-efficient way (Min & Ko, 2008). They have started to change the process of reverse logistics by involving product returns and considered mapping the returns in order to create more opportunities for cost savings and service improvements, to see where the highest cost is located (Min & Ko, 2008).
Return behavior among end-customers
The more an end-customer buys online, the more they tend to return (Petersen & Kumar, 2010). “As the internet lacks the physical interaction element vital for judging physical items, consumer returns will always be a part of internet retailing …” (Hjort et al., 2019, p.770).
The reason for end-customers returning products depends on different factors according to Pei & Paswan (2018), where these factors are impulsiveness, group pressure, and product compatibility. The return category of end-customers is the most common one (D. S. Rogers, Lambert, Croxton, & García-Dastugue, 2002) and the factors stated by Pei & Paswan (2018) can link back to the end-customer. Further Hjort et al., (2019) states that end-customer returns can be everything from buyer’s regrets, customer dissatisfaction, or defects (product or delivery service). The reason behind these factors of returns could be that the product is damaged when it arrives, the end-customer receives the wrong product, the product does not meet the expectation the end-customer had or that the end-customer finds the same product for a lower price at another reseller (Pei & Paswan, 2018).
Walsh & Möhring (2017) study display that money-back guarantee increases retailers’ return rate, while information about the return or free-return label does not affect the return rate as much, lastly, product reviews from other customers tend to decrease the return rate as well. This, since product return decisions are basically affected by the satisfaction end-customers have after purchases, and the satisfaction is influenced by the expectations an end-customer has before the purchase (Minnema, Bijmolt, Gensler, & Wiesel, 2016). End-customers’ return behaviors are affected by the companies product return policies and therefore, customers’ return behavior affects the firm - end-customer exchange process (Petersen & Kumar, 2009).
As can be seen, there are multiple reasons for product returns. It is important for fast-fashion retailers to understand the causes of the return behavior, whether it is end-consumer-related or product-related. This to be able to meet the needs in a better way
towards their target market (Cook & Yurchisin, 2017). This, since all members of the supply chain, will be involved to some degree (Hjort et al., 2019).
Return policies
The fact that companies choose to have more liberal policies regarding end-customer’s right to return a product has led to end-customers starting to return products they bought, even if there was no issue with the product (Rogers & Tibben‐Lembke, 2001). This increases the returns, which in turn, places more strict demands on efficient return logistics. For those companies that are trying to tighten their return policies, they have found out that tightening return policies can be difficult to implement as competitors still have liberal return policies, which leads to that they have placed themselves at a competitive disadvantage (Rogers & Tibben‐Lembke, 2001). This is due to that end-customers today are used to the availability to return unwanted products for just about any reason (Su, 2009). Many retailers, therefore, believe that more restrictive return policies would result in a loss in sales and would far exceed the reverse logistics savings (Rogers & Tibben‐Lembke, 2001).
Su, (2009), declares that if returns are not provided by the company, end-customers who find the product unwanted must keep it, even if there are better options for the product. To have return policies that enable an end-customer to return products also enable the product to be redirected for better use. However, even if there are positive implications of lighter return policies, free returns, where the end-customer gets a full refund for the product, this often leads to negative implications. This, since the logistics performance no longer will be optimized due to the limited value returned products have and can, therefore, become unprofitable (Su, 2009).
If the end-customer knows that the product easily can be returned, reverse logistics can be seen as reducing risk for the end-customer and therefore make the company more competitive. When end-customers select suppliers it is evident that most of them will prefer to reduce risks and therefore take into account the supplier’s return policies (D. S. Rogers & Tibben‐Lembke, 2001). Liberal return policies for end-customers are a way to encourage purchases, this since the risk of a product misfit decreases since
end-customers can just ship it back (Su, 2009). This is needed since it is only after purchases that end-customer become aware of the values they have for a product, which is why return policies plays an important role in resource allocation (Su, 2009).
2.2
Reverse logistics
By Rogers & Tibben‐Lembke (1999, p.2), reverse logistics is defined as "The process of planning, implementing and controlling the efficient, cost-effective flow of raw materials, inventory, finished goods, and related information from the point of consumption to the point of origin for the purpose of recovery of value or of proper disposal.”. Furthermore, the process includes that the company collects products in order to make decisions about recycling or reselling the product to another end-customer (Govindan, Soleimani, & Kannan, 2015). Meade & Sarkis (2002) pinpoint similar things where it is about returning reusable and recyclable materials into the forward supply chain and by doing so, reverse logistics completes the environmental cycle.
Looking further into reverse logistics, the operation is independent compared to forward logistics (Pohlen & Theodore Farris, 1992). The main difference between the two of them is that products are shipped to customers in forward logistics, and from end-customers in reverse logistics (Mohtashami, Aghsami, & Jolai, 2020) or from the final destination (Kannan, 2009). It could also be as Tibben-Lembke (1998) describes it, products are being moved the “wrong” way.
Furthermore, some differences regarding reverse logistics and forward logistics displayed by Tibben-Lembke & Rogers (2002) are that it is first of all more difficult to forecast reverse logistics since different products have different return rates. Secondly, are forward and reverse shipments difficult to combine with each other, since returned products are more difficult to manage compared to new ones. Thirdly, returned products quality is more likely to be worse since the package is not proper. Lastly, the matter of speed is less important in product returns. Since it is difficult to forecast reverse logistics (Tibben-Lembke & Rogers, 2002), companies rarely plan for this process since it often is associated with costs rather than profits (Sasikumar, Govindan, & Noorul Haq, 2009).
Looking at the operational side of reverse logistics, factors such as cost-benefit analysis, transports, warehousing, delivery handling, remanufacturing, recycling as well as packaging are important (Sarkis, Helms, & Hervani, 2010). The performance of reverse logistics depends on how a company receives, processes, sorting, and dispositioning the previously mentioned activities (Chetan & Patil, 2016). Where the transportation system and infrastructure are crucial for the properties of reverse logistics (Sarkis et al., 2010). Furthermore, end-customers have later on required reverse logistics to more environmentally friendly and therefore are companies cooperating with 3PL in order to fulfill these requirements (Govindan, Jha, Agarwal, & Darbari, 2019).
Activities in reverse logistics
The business activity of e-commerce includes different operations, where the activity of reverse flow of products is to some extent still unsolved (Hjort, Hellström, Karlsson, & Oghazi, 2019). The reason for insufficient and unsolved reverse logistics functions is due to a lack of experience among companies (Bai & Sarkis, 2013). During the last decade, the interest in reverse logistics has increased, both in literature and practice (Giannetti, Bonilla, & Almeida, 2013; Meade, Sarkis, & Presley, 2007).
The reverse logistics process is a complex network (Sasikumar et al., 2009), and as companies have troubles with the process, they outsource the reverse logistics to third-party logistics (Efendigil, Önüt, & Kongar, 2008; Sasikumar et al., 2009). The reason behind this is because 3PLs have implemented ways of dealing with returned products and is, therefore, a way of successfully implementing reverse logistics (Efendigil et al., 2008). Due to this, it is common for companies operating in the e-commerce sector, outsourcing their reverse logistics to 3PLs (Meade & Sarkis, 2002; Sasikumar et al., 2009). Furthemore, Kannan (2009) states that outsourcing is one of the most important strategies.
When implementing and dealing with reverse logistics, there are some activities to take into consideration, these are transportation, storage, and the handling of the returned products where 3PLs are in charge of the management of these functions (Efendigil et al., 2008).
Furthermore, there are several other activities, beyond controlling the reverse flow of products (Hjort et al., 2019) to take into consideration, and these activities are reusing, remanufacturing, recycling and repairing returned products from end-customers (Govindan, Palaniappan, Zhu, & Kannan, 2012). Beyond these, disposal and recovery are activities as well (Mohtashami et al., 2020). Due to the different activities regarding product returns has the cost of it increased, leading to that the profit margins have decreased (Min, Ko, & Ko, 2008). The activity of repairing a returned product means that a person with a specific skill set repairs the product and when remanufacturing returned products, technology is used to process the products (Srivastava, 2008).
Due to an increasing concern for sustainability, the interest in reusing products has boosted for the reason that it is better for the environment as well as proven to be profitable for the companies to take care of used products (Govindan, Pokharel, & Sasikumar, 2009; Sasikumar et al., 2009). Since the concern for the environment has increased, it is more important for companies to evaluate the environmental impact products have during their life-cycle (Efendigil et al., 2008).
The action of companies offering end-customers to return warranted and/or defective products is an important step to increase the chances of improving the environmental parts (Efendigil et al., 2008). The interest of becoming more environmentally friendly and the practice of it has increased (Nikolaou, Evangelinos, & Allan, 2013; Srivastava, 2007). Numerous 3PL companies try to implement more greener activities in order to improve their environmental performance, but also to meet demands from customers and regulations from the government (Bai & Sarkis, 2013).
The positive side of reverse logistics
As the activity of reverse logistics covers the returns of defected and warranted products from the customer (Meade & Sarkis, 2002). As a result of companies receiving returns, the process can reduce end-customers’ risk and instead increase the end-customer satisfaction, which could lead to future sales for the company and raised revenue (Petersen & Kumar, 2010). By handling product returns in an effective way through transportation, inventory, and warehousing, it could lead to money savings but also the
possibility of competitive advantage (Min et al., 2008). Furthermore, companies can also increase the advantage in the overall global economy by extending their efficiency when handling returned products in the reverse logistic process (Efendigil et al., 2008). The overall practice and concept of reverse logistics have become more relevant due to increased concern for the environment (Srivastava & Srivastava, 2006).
2.3
Return transportation
The volume of activities completed by freight transports has increased and has been beneficial for the international economy, but at the same time, it has led to that the negative environmental impact has increased (Wang, Lai, & Shi, 2011). The reason behind increased freight transports is due to higher demands from end-customers and higher production (Mohtashami et al., 2020).
The attention about sustainable transports and sustainable distribution has increased, both from a technological and managerial perspective, with the main objective to decrease the CO2 emissions and greenhouse gases (Marchet et al., 2014). The decrease is crucial for obtaining a sustainable supply chain (Marchet et al., 2014). There are several different activities that can be implemented in order to ameliorate transportation and make it greener (Pålsson & Johansson, 2016).
First of all, companies can implement the usage of cleaner vehicles, hybrid vehicles, and alternative fuels, eco-driving, and non-fossil fuel (Lieb & Lieb, 2010b; Pålsson & Johansson, 2016). In general terms, this is called fleet technological innovations (Lieb & Lieb, 2010b). Furthermore, the environmental impact, in combination with the previously mentioned activities, can be reduced by optimizing the waiting time for transportation fleets (Lieb & Lieb, 2010b; Mohtashami et al., 2020). As well as shift the traffic to a more fuel-efficient one (Lieb & Lieb, 2010b). The common denominator for these activities is that they are driven by behavioral and technological changes (Pålsson & Johansson, 2016).
For shipping in general, the roads are the most appropriate option for decision-makers when it comes to shipping products in Europe (Vannieuwenhuyse, Gelders, & Pintelon, 2003). This statement holds for the case of Sweden as well, where roads are the best
transportation option since it is more flexible than other options (Pålsson & Johansson, 2016). By having good transportation management, the overall cost can be decreased. This, since trucking costs could decrease if they operate after more optimal routes since it leads to no delays and in-house spaces can be decreased (Sasikumar et al., 2009). The routes would be more optimal with a given logistical structure since the total number of kilometers a vehicle travels is reduced (Pålsson & Johansson, 2016). Furthermore, by loading the vehicles full when transporting products, a company could save money since the overall cost is split by more products (Wu & Dunn, 1995). The issue with transporting by road is due to the amount of traffic which leads to traffic accidents and uncontrollable emissions appears. This leads to increased waiting costs and environmental damage (Vannieuwenhuyse et al., 2003).
Otherwise, government regulations can be helpful for “greening” the vehicle fleet for companies, due to increased fuel costs, scarcity of fuel, and improving their own company image (Lieb & Lieb, 2010b; McKinnon, 2010). Even though government regulations could be helpful and are implemented, it is not the most effective way though, compared to recycling materials, reduce consumption and increase training and education about the environment (Murphy, Poist, & Braunschwieg, 1994).
There are still some obstacles when downsizing the CO2 emissions from transports, according to Pålsson & Johansson (2016) are there in general four obstacles, technical, organizational, external preconditions as well as logistical barriers. Furthermore, product returns are often hard to arrange, which often results in half-full pallets meaning that the only thing that holds the pallet and the products in place is the plastic wrapped around it. This, in turn, means that returned products are more likely to be damaged during transport and handling, compared to forward logistics, it also implies that the transports are not used to its full extent (Tibben-Lembke & Rogers, 2002). The problem here is that there are some obstacles with changing the way of transportation as well since flexibility is one of the key factors from not changing from road and air to other alternatives. Furthermore, in the case of Sweden, the lack of rail infrastructure is another retrenchment in order to change the way of transportation (Pålsson & Johansson, 2016).
Environmental effect
The overall concern about the environment has increased from companies, society, and government (Aronsson & Huge Brodin, 2006; Evangelista, Santoro, & Thomas, 2018; Mohtashami et al., 2020). Where transportation has a big impact on global warming (Pålsson & Johansson, 2016; Wang et al., 2011), in terms of air pollution and gas emissions which is harmful to human health (Wang et al., 2011). Therefore, companies need to be more environmentally friendly since legislation is putting pressure on companies (Pålsson & Johansson, 2016). This since the environment and natural resources should last for future generations (Evangelista et al., 2018).
Traditional drivers such as cost, flexibility, and service quality are not enough for the environment, therefore, companies need to take energy consumption, emission level of pollutants, and production of waste into consideration as well (Marchet et al., 2014). In addition, according to Maas et al., (2014), are third-party logistics responsible for a considerable amount of global energy usage and energy-related emissions. Further, for companies to be green, they need to do investments which leads to increased costs (Pålsson & Johansson, 2016). In the long run these investments could result in cost savings in terms of greener transportation that leads to reduced emission (Pålsson & Johansson, 2016).
Already in the 1990s, Tibben-Lembke (1998) said that the process of returning products should be easy in order to be able to reduce transportation costs in reverse logistics. Due to the structure of logistics and the decision-making process within companies, CO2 emissions have not been favored and are, therefore, not efficient within freight transportation (Pålsson & Johansson, 2016). Since logistics is the major part of the supply chain, the environmental impact made from transportation should not be underestimated (Aronsson & Huge Brodin, 2006). The issue is though that transportation and emission are growing consistently (Pålsson & Johansson, 2016). For freight transportation to be environmentally friendly, they are dependent on logistic providers since they are believed to have more knowledge within the subject of logistics and transportation (Sallnäs, 2016).
Environmental footprint
The concern about the environmental footprint from end-customers has increased and they want companies to undertake activities that decrease the impact (Choudhary et al., 2015). Sundarakani et al., (2010) states that emissions can be a threat to the environment on several stages in the supply chain and is therefore important to keep in mind when designing it. This, since rules and regulations about the environmental footprint, has become more important and it has become a challenge for companies to implement these regulations into their decision-making process (Choudhary et al., 2015).
Further, activities to implement in order to decrease the environmental footprint is to minimize the overall energy usage of the company’s warehouse and make it more efficient, no matter the energy source. This can be done by using alternative energy sources such as solar panels, secondly, implementing energy-efficient material handling equipment and thirdly, minimize the water waste (Lieb & Lieb, 2010b). Beyond this, companies can use recycled and ecological materials as well as reduce packaging (González-Benito & González-Benito, 2006) or redesign the packaging (Ciliberti et al., 2008). It is shown that packaging has an important effect on both the environment and transportation in the industrial process (Wever, Boks, Marinelli, & Stevels, 2007).
Because of more efficient packaging, freight loads can be more optimized in order to reduce overall weights of shipments which leads to more cargo efficiency as well as a waste reduction (Sarkis, Meade, & Talluri, 2004). Another way to optimize transportation is by selecting the right vehicles and finding the appropriate number of vehicles, which can minimize the overall transportation cost. Furthermore, companies combine vehicle selection with goals on emission reduction and more efficient usage of the vehicles, in order to meet the demands from customers (Reddy, Kumar, Sarkis, & Tiwari, 2020).
By merging environmental thinking into the third-party logistics business strategy, 3PLs hopes to improve their competitiveness (Maas et al., 2014). The increased competition for environmental sustainability is a driving force for decision-makers for reducing their
emissions (Choudhary et al., 2015). Due to the environmental pressure, more companies have created programs in order to advance, manage, and report the environmental efforts completed by the company (Maas et al., 2014). As Simpson & Samson (2010, p.105) display, we can see “… an increasing number of public statements of corporate environmental strategy and new types of environmentally themed product and service.”. Therefore, the design of the logistics network is vital in order to reduce the environmental footprint in combination with the overall costs (Choudhary et al., 2015).
Emission prevention
As mentioned in the delimitations 1.5, everything regarding the environmental impact will be considered as emissions, even though it could appear in citations as pollution prevention.
Lieb & Lieb (2010a) debate that third-party logistic provider’s prevention efforts are mainly focused on reducing the energy and emissions required by logistics facilities and transport operations. That kind of efforts suggest using environmentally-friendly equipment and renew the service processes (Maas et al., 2014).
If 3PL providers misbehave, regarding environmental activities, their customers could experience reputational harm from this, on the other hand, if 3PL providers provide environmentally-friendly logistics services, their customers could benefit from it (Porter & Linde, 1995; Reuter, Foerstl, Hartmann, & Blome, 2010). Subsequently, emission prevention strategies do not only support gains in productivity, but it also acknowledges third-party logistic providers to improve their status and to find a more environmentally friendly outlook (Sarkis & Cordeiro, 2001).
Maas et al., (2014, p.49), assume that “… pollution prevention and service stewardship capabilities enable 3PL providers to gain a differentiation advantage.”. Especially emission prevention has a huge impact on third-party logistic providers differentiation impact. Earlier, logistics activities have been seen as a secondary support function, that are not straight value-adding activities, and that the cost of them needs to be reduced. Nevertheless, because of that, 3PL providers are accountable for a huge amount of
energy usage and energy‐related greenhouse gas emissions (Marchant, 2010). The significance of green logistics operations for the sustainability of supply‐chain‐wide business operations is rising (Maas et al., 2014).
The results of Maas et al., (2014) paper, support the argument by Wolf, (2013) that emission prevention abilities could be a significant component of service providers’ business strategies to gain differentiation advantage, particularly in energy-demanding service sectors such as 3PL.
Since an indicator of economic inefficiency is emission (Porter & Linde, 1995), to prevent them in service operations usually indicates efficient service processes to customer firms (Maas et al., 2014). When companies decide to invest in the production technology process with the aim to reduce emission from products, they can gain sustainable economic growth (Sarkis et al., 2010).
2.4
Conceptual framework summary
Model 2.1, stated below, gives an overlook of what was displayed by the literature in the frame of reference. The end-customer is seen as the starting point of the product return-chain and the 3PL is the end. The 3PL can also be seen as the hub between all actors (end-customer, customer, and freight company), where they are in charge of managing product returns. In this thesis, the chain between the end-customer and the 3PL is considered to be the reverse logistic process. This process, could be very difficult to plan and is therefore not considered to be optimized. 3PL, return transportation, and environmental impact is the foundation of the problem and purpose of the thesis. Since the end-customer is the key driver regarding product returns, the issue regarding the environmental impact from return transportation is somewhat caused by their willingness to return and is shown to have a negative effect on the environment. In addition to this, product returns are added and provide relevant information to the literature and the thesis in general, as well as the link between end-customers and return transportation. Having the end-customer as part of this study, acknowledges the 3PLs as the end-customers core channel through which product returns and transportation return services are environmentally evaluated in the wanted level of impact.
Model 2.1 – A summary of essential themes to move forward in the coming chapters of the thesis developed by the authors Debora Johansson & Jonathan Nordgren, (2020)
Even though the 3PL is important for the environment, it has not been studied previously in what ways they can reduce the environmental impact regarding the management of return transportations. Further, what the challenges for the development of product returns are, have not been highlighted either, since this is the key driver for the number of return transportation. Lastly, in what ways the product returns could be managed have not been discussed any further, here is the end-customer an important player.
3
Method
The following chapter creates a methodological understanding of this thesis. The chapter covers several different aspects, where it starts with an explanation of the interpretivism research philosophy, followed by the choice of research approach. Thereafter, the strategy of the thesis is covered, as semi-structured in-depth interviews were the authors choice of primary data. The collected data is analyzed and the ethical considerations highlighted. The process of providing a method section in the thesis is to secure the trustworthiness and reliability of the gathered material.
Research philosophy
The intention of this study is to investigate how 3PLs act in order to minimize the environmental impact regarding return transportation. Here is relativism the most sufficient ontology, this, since employees within 3PL companies perceive everything differently. Therefore, it is the mental capabilities of the employees and the end-customers in focus (Easterby-Smith, 2018). Furthermore, 3PLs could have strategies developed regarding the environmental impact and therefore, can the relativistic point of view investigate how these strategies can be implemented in reality (Easterby-Smith, 2018). Due to the aspect of different perceptions from employees at 3PLs and different end-customers, knowledge and understanding from researchers and social actors distinguish the reality (Orlikowski & Baroudi, 1991). The aim of social constructionism, or interpretive philosophy, is to understand how different people perceive their reality through their involvement and experiences (Easterby-Smith, 2018; Orlikowski & Baroudi, 1991). The outcome of the research, when using the social constructionism, could lead to differences, due to the role of knowledge and acting in groups as well as the relatedness between theory and practice (Orlikowski & Baroudi, 1991).
Research approach
A conducted study can be classified as deductive, inductive, or abductive (Alvehus, 2013). A deductive study is an approach towards the relationship between theory and research. In the case of deductive, research is conducted with reference to hypotheses
and ideas inferred from the theory. While instead, an inductive approach is more towards the relationship between theory and research, where instead the theory is generated out of the research (Alvehus, 2013; Bryman, 2012). On the other hand, an abductive approach can be seen as a mixture between the deductive and inductive approach where the thesis switches between theory and empiricism. This thesis is considered to have a more abductive approach since the study is based on theory and research collected from 3PLs and end-customers. Later on, the theory and research generated the developed model 5.2 which is described more in-depth in chapter 5. Further, as Alvehus (2013) points out, deductive and inductive approaches should rather be seen as ideals that can be difficult to live up to, and therefore rather become some kind of abduction approach, which is the case in this thesis. The reason why the inductive approach is not solely chosen for this study is because it is for our thesis not appropriate to only extract theory from the empirical findings since this thesis is based upon previous literature within the research area as well. This thesis generates the model 2.1 (chapter 2, section 2.4) from previous literature and as this approach states, ideas are generated from previous studies and findings, but since the aspect of hypothesis not is covered in this thesis, it is not solely considered to have a deductive approach.
Research strategy
A study is also classified as either qualitative or quantitative, which means, the way an author chooses to generate, process, and analyze the data and empirical data collected. A qualitative study means that the data collection focuses on data based on different persons viewpoints, which for example, involves data collected during interviews which then are interpreted. A quantitative data collection, on the other hand, focuses on data collection through measurements and then statistics processing, often done through surveys (Bryman, 2012; Patel & Davidson, 2011).
The choice of data collection method for this thesis was taken with regard to the purpose of this thesis. This ended up with the collection of in-depth semi-structured interviews, leading to information that is difficult to measure through surveys, such as in-depth experience, feelings, or opinions. The data was collected through semi-structured interviews with various employees at third-party logistics companies and
end-customers, where the interviews play a central role in the study and therefore a qualitative method has been chosen. The reasoning behind this, is to be able to gather sufficient, in-depth, empirical material to fully understand in what ways 3PLs in Sweden act in order to minimize the environmental impact regarding product returns and return transportations. Further, the end-customers were interviewed in order to deepen the understanding about return transportation managed by 3PL and what input they have regarding the reduction of product returns since they are the major reason for product return transportations. This could lead to 3PLs addressing these inputs and therefore we believe it is important to take this aspect into consideration.
When conducting a study, the authors should also consider whether the study should be explorative, descriptive, or hypothesis testing. Exploratory research means that there are gaps in a particular research area and the authors choose to gather as much knowledge as possible in this area in order to be able to highlight this problem area in a comprehensive way. Descriptive research, instead means that there is already a certain amount of knowledge within a certain problem area. Which then is done by analyzing the knowledge that exists in the field and a choice to investigate some aspects of the phenomena that are of interest. In areas where there is an extensive body of knowledge and theories developed, the author can conduct hypothesis-testing. Hypothesis testing means that the author draws conclusions in the field, which is then tested using investigations (Patel & Davidson, 2011). This thesis can be described to have a combination of exploratory and descriptive. This, since there is a certain amount of knowledge in the nearby areas weere selected parts of the knowledge are analyzed which are considered to be interesting but no general conclusions have been drawn. Furthermore, there is a gap in the particular area where this study has its focus.
In order to gain a reasonably good insight into the return management of various third-party logistics, it was decided to conduct interviews with employees in order to obtain empirical material. Further on, end-customers were interviewed as well in order to deepen the understanding among them and their knowledge about return transportation from a 3PL point of view, this since they are the key driver behind product returns.
Data collection method
The chosen method, in order to provide this study with empirical data within the research area, will be semi-structured interviews. The desire with the interviews was to collect empirical data from online shoppers who are defined as end-customers and the 3PL companies responsible for the return management processes. By applying semi-structured interviews, the data collection will be of qualitative sort, which falls in line with the ontology relativism and the epistemology constructionism (Easterby-Smith, 2018). Interviews are done in order to create an understanding of how the respondent perceives reality (Easterby-Smith, 2018; Reynolds & Gutman, 1988). Furthermore, interviewees could have different viewpoints and are, therefore, more plausible to be expressed during interviews (Flick, 2018). Adding on to this, by using the interpretive philosophy, a broad context was tried to be covered in order to achieve different understandings and generalizability (Darby, Fugate, & Murray, 1990). Furthermore, semi-structured interviews give a wider range of adaptation than structured interviews since the list of questions is more flexible (Easterby-Smith, 2018).
The semi-structured interview approach is guided towards a more open interview where there are some topics needed to be covered and where relevant questions lead to open-ended answers, where open-open-ended answers allow the respondent to reflect and account on their personal experiences (Easterby-Smith, 2018). This could lead to further “please tell me more” or “why is this important to you” questions (Easterby-Smith, 2018; Reynolds & Gutman, 1988). By asking these types of questions, the interviewer shows their interest and could be able to get more fundamental answers since the interviewer is underneath the surface of the respondent (Reynolds & Gutman, 1988). It also allows the researcher to further investigate an interviewees’ answer, in order to deepen the understanding and check if they understood the answer correctly (Flick, 2018).
Techniques and procedures
Demarcation of the research questions could lead to an easier way to come up with different interview questions (Patel & Davidson, 2011). The interview questions that had been asked were raised by the authors throughout the study, where they sought a golden thread. The aim with the golden thread was to have questions linked to each
other and at the same time able to provide answers in order to be able to answer the research questions. Basic questions should reshape the basic information needed to conduct the study. There should also be room at the end of the interview for comments and reflections from the respondent, in order to possibly add significant information that was considered missing (Patel & Davidson, 2011). Some time before the interviews were to take place, the authors sent the interview questions to the respondents who requested the questions on forehand, to give them the opportunity to be prepared for the interview. This could lead to that the respondents gathered information on the questions that would be asked and thus contribute more input to the interview within the areas they find themselves less competent.
The questions that aimed towards the 3PL companies and the employees responding (Appendix F), could be divided into two sections, the first one containing questions to reshape the structure of the return process and the focus of it from the company's perspective. The second part of the questions aims more towards the research questions where the aim is to get a deeper understanding of both companies’ values as well as the respondents’ thoughts and ideas on how to develop the process of product returns and return transportation. This, in order to obtain information valuable for the thesis.
The questions for the end-customers were shaped in a slightly different way (Appendix G), where the first section was to create an overview of the interviewees’ purchasing frequency of online shopping. In the second part where the interviewee provided with some information regarding product returns and return transportation. The provided information was based upon facts that the authors touched upon during the thesis and no further opinions from the authors were implemented. The authors considered it important to provide this information in order to get the end-customer to reflect further upon the topic.
During the semi-structured interviews that have been executed, an approach known as laddering has been used. The laddering questions are not arranged before the interviews, they are instead used as follow up questions with the intention of generating a more comprehensive and thorough understanding of the subject examined. The general aim with this technique is to have open questions that allow individual and non-guided
answers, together with the goal of reaching fullness by asking questions until everything relevant is investigated and no further insights occur in the interviews (Reynolds & Gutman, 1988).
In order to answer the research questions, through the gathered data for the study, verbal analysis methods were used. A verbal analysis method means that you communicate verbally with a person in order to ask questions and discuss them. By using this method of analysis, it can provide answers to questions such as how companies work with their processes and what they see as difficulties (Patel & Davidson, 2011). Furthermore, also to be able to observe and involve non-verbal communication as a step in accomplishing a credible and trustworthy data gathering process, all interviews were completed face-to-face. This in order to have the opportunity to discover and identify non-verbal clues such as facial expressions and the pitch of the voice, to be able to come up with follow up questions (Easterby-Smith, 2018). Communication in person has also favored the interview process and guaranteed richer data. Two interviewers have been present at nearly every interview occasion, in order to maintain security and make sure that the gathered data have been perceived correctly.
The interviewers who conducted the interviews have had individual protocols with notes and comments. To block any possible gaps or blanks, these protocols have been controlled directly after the interviews. The protocols also fill the function of minimizing the risk of biases and to increase the trustworthiness and the credibility of the gathered material, which is an important step in having objective data in a strongly qualitative process (Easterby-Smith, 2018). These protocols also fulfill the intention of being a complement to the interview itself. In addition to the protocols, the interviews have been audio-recorded, to create the opportunity of being able to go back to double-check or control what has been said.
Research sample
The research sample is displayed below in tables 1 and 2 and shows the position of the employees, as well as which company they are related to. For the end-customers, their code name and frequency of online shopping are displayed. All respondents have been
