A system for anomaly detection in reverse logistics: an application into an e-commerce company

PurposeThis study aims to present a methodology and a system to support the technical and managerial issues involved in anomaly detection within the reverse logistics process of an e-commerce company. Design/methodology/approachA case study approach is used to document the company's experience, with interviews of key stakeholders and integration of obtained evidence with secondary data. FindingsThe paper presents an algorithm and a system to support a more efficient and smart management of reverse logistics based on a set of anticipatory actions, and continuous and automatic monitoring of returned goods. Improvements are described in terms of a number of key performance indicators. Research limitations/implicationsThe analysis and the developed system need further applications and validations in other organizational contexts. However, the research presents a roadmap and a research agenda for the reverse logistics transformation in Industry 4.0, by also providing new insights to design a multidimensional performance dashboard for reverse logistics. Practical implicationsThe paper describes a replicable experience and provides checklists for implementing similar initiatives in the domain of reverse logistics, in the aim to increase the company's performance along four key complementary dimensions, i.e. time savings, accuracy, completeness of data analysis and interpretation and cost efficiency. Originality/valueThe main novelty of the study stays in carrying out a classification of anomalies by type and product category, with related causes, and in proposing operational recommendations, including process monitoring and control indicators that can be included to design a reverse logistics performance dashboard.