Reverse supply chain management practices in Large scale manufacturing companies in Nairobi, Kenya

Abstract

Over the last decades, the issue of reverse supply chain has moved much higher up the agenda, owing to the increasing competitive environment, environmental awareness, regulatory initiatives and economic pressures. Individual companies have gradually included the backwards flows of end-of-life and end-of-use products within their scope of supply chain planning and control to increase their efficiency and effectiveness and create more sustainable supply chain. From a business perspective, the implementation and control of the reverse supply chain system indeed requires a large amount of investments. However, it could also result in an increase in the overall business profitability, a better corporate image and a higher customer satisfaction level for individual companies. The purpose of the study was to determine reverse supply chain management practices in large scale manufacturing companies in Nairobi. The study adopted a descriptive survey research design. A structured questionnaire was prepared and distributed to all selected respondents. A five point scale was used to collect data and analysis was based on percentage, mean and standard deviation. The findings of the study was that the adoption of reverse supply chain by the manufacturing companies has employed the type of material dealt with, operational procedures adopted, lack of an appropriate and customized system, the means of transporting the products from customers to, adoption of information technology in the process has improved product visibility, outsourcing of reverse supply chain duties has hastened and made it cost effective and adoption of the pre return labels in the raw materials has hastened the process of reverse supply chain. The benefits derived by the companies from adoption of reverse supply chain management was improved customer satisfaction, increased corporate profitability, provides customers with superior service of inventory availability and delivery, improved corporate image, longer term inter-firm relationship, cost reduction and containment, increased sales, improved customer satisfaction, improved management of threats from competitors, improved stock performance, operational efficiency with customers, self-satisfaction, efficient utilization of resources, and sustainable production and consumption of products.