Leveraging Industry 4.0 Technologies for Reverse Logistics Financial Performance: a Systematic Literature Review

Despite the growing interest in Industry 4.0 (I4.0) technologies, their implementations across various fields, and their potential role in improving reverse logistics (RL) operations; the financial advantages of I4.0 technologies remain unexplored and lacking in application. This study deployed a systematic literature review (SLR) to identify and examine the key I4.0 technologies applicable in RL operations, and their implications on financial outcomes, to propose a novel taxonomy of reverse logistics financial performance (RLFP), and to suggest directions for further investigations. A state-of-the-art SLR of relevant peer-reviewed RLFP published between 2000 and 2023 is conducted. The qualified studies are evaluated qualitatively using template analysis through dynamic capability theory (DCT). Results indicated that I4.0 technologies positively influence RLFP, with artificial intelligence (AI), big data, advanced robotics, and internet-of-things (IoT) demonstrating dominant effects on financial results. However, findings revealed limited research efforts on cyber-physical systems (CPS), cloud computing, and cognitive computing as I4.0 technologies, indicating a substantial gap in the literature. Results suggested that operational efficiency, flexibility, risk management, and real-time visibility are the key financial performance metrics for I4.0 technology adoption. Findings further emphasized that the application of I4.0 improves competitive advantage, revenue generation opportunities, customer satisfaction, and cash flow improvement, and lowers operational expenses, which drives RLFP.