EXPLORING THE LINKAGES OF RISK FACTORS IN THE REVERSE LOGISTICS OF DELIVERING FAST-MOVING CONSUMER GOODS: A CASE STUDY AT PT X

Abstract

The Fast-Moving Consumer Goods (FMCG) industry faces complex challenges in managing product returns within its reverse logistics process. This study aims to identify and analyze the interrelationships among risk factors influencing the return process in a logistics service company that supports FMCG distribution. Using the Decision-Making Trial and Evaluation Laboratory (DEMATEL) method, data were collected from three logistics experts to evaluate the causal relationships among identified risk factors across five business processes: warehousing, transportation, quality, order processing, and customer-related issues. The analysis revealed that master data issues (C2) are the strongest causal factor influencing other variables, acting as a critical driver for systemic change. Poor inventory accuracy (B1) emerged as the most prominent and central factor within the network, functioning as both a cause and mediator of multiple interactions. Conversely, delivery delays (B6) and incomplete products (B8) were identified as the most affected factors, serving as indicators of overall system performance. The findings highlight that improving data management and inventory accuracy can significantly enhance the efficiency and sustainability of reverse logistics in FMCG operations. This research contributes to the understanding of systemic risk linkages in reverse logistics and provides a foundation for strategic decision-making in sustainable supply chain management