Reverse Logistics and Performance of Liquefied Petroleum Gas Firms in Kenya

Abstract

The objective of the study was to determine reverse logistics and performance of liquefied petroleum gas firms in Kenya. Study used descriptive statistics techniques to analyse the data since it was quantitative in nature. These techniques were measures of central tendency and measures of dispersion. The emerging findings were presented using tables. Pearson moment of correlation and regression analysis was used to determine the effect of reverse logistics on the performance of liquefied petroleum gas firms in Kenya. The study concluded that reverse logistics practices (closed loop supply chains, contracted third party and joint venture) influence the operational performance of LPG firms in Kenya to a great extent. The closed loop supply chains practices used were involved reuse of gas cylinders, recycling of gas cylinders, remanufacturing of products and recall of faulty products. Third Parties were contracted to market and transport LPG products. Joint Venture focused on combined transportation, joint conveyance, joint quality control, joint collection and recycling centers and joint waste disposal. The study also concluded that there is a strong relationship (R=0.793) between reverse logistics (closed loop supply chains, contracted third party and joint venture) and the performance of liquefied petroleum gas firms in Kenya with reverse logistics accounting for 63% of the liquefied petroleum gas firms operational performance. Challenges were faced to a minimal extent with the most faced challenges being the high cost associated with reverse logistics practice implementation; inadequate reverse logistics performance measures and existence of inadequate information systems linkages within the supply chain logistical network and changing organization culture while implementing reverse logistics practices. The study recommended that the management of the LPG firms should set aside adequate budgets for supporting reverse logistics endeavours as a way of boosting performance. LPG firms claimed their information was confidential and legally privileged and therefore the data collection process was slow. The researcher convinced the respondent that the data was needed to fulfill academic purpose only. The researcher also assured the respondents that the identity of their firms would not be revealed and that the information availed will not be divulged other than for the intended purpose.