Reverse logistics and 3PL in the Czech Republic

The paper is focused the results of survey investigating the utilization of services of the so called 3PL (third party logistics) or in other words outsourcing of reverse logistics activities (RL) in the context of their strategic versus operative or ad hoc management of RL and in relation to various benefits seeking and gaining within the frame of RL management. The exploratory analysis tries to answer the basic research question whether companies strategically managing reverse flows (RF) use services of 3PL more often compared to companies with ad hoc or operative management and what is the role of costs versus benefits in the context of outsourcing of RL activities. The survey was realized among 150 Czech small, middle and big companies from several industries and the size and type of industry are two other contextual factors related to outsourcing decisions. Results show statistically significant relationship between character of planning hierarchy and number of activities performed by 3PL, where companies that plan RF strategically, employ 3PL more often. The findings indicate also differences between the companies which plan RF strategically and those which plan RF only on tactical and operational level (Sig. (1-tailed) = 0.033) and those that do not plan at all (in comparison to those that plan on strategic level - Sig. (1-tailed) = 0.123) when analyzing the types of RL activities. The survey also shows that companies which outsource more RL activities (3 and more), perceive less financial benefits than nonfinancial benefits. Significant dependence was detected between the size of company and number of both benefits perceived with RF management. This finding can stand for the fact, that in bigger companies more commitment of managers and employees is devoted to RF. Very important result shows that activities which are outsourced distinctly more by the companies planning RL strategically belong to the activities creating higher value for companies. The paper contributes to a better understanding of present knowledge targeted at RF management practices and offers the first existing knowledge of the utilization of 3PL for RL practices in the Czech Republic.