Effect of Reverse Logistics on Operational Performance of Liquefied Petroleum Gas Companies in Kenya
Abstract
One of the major concerns that companies have is the need to support sustainable
environment. Customers’ awareness on environmentally friendly initiatives have
increased over the years, driving firms to become more responsible to the environment.
Governments have put in place strict regulations that demand firms to monitor the
impact of their activities on the environment or face heavy penalties due to noncompliance.
Stiff competition and other economic factors have also pushed companies
into adopting green strategies. Reverse logistics is one of the key green strategies that
emphasizes on supporting sustainable environment in the field of logistics. There are
many benefits associated with reverse logistics such as reduced costs, improved
customer service, reduced waste, enhanced flexibility and improved quality. In this
context, the objectives of this study were: to determine the reverse logistics practices
among liquefied petroleum gas companies in Kenya and to establish the effect of
adoption of reverse logistics practices on operational performance of liquefied
petroleum gas companies in Kenya. The study used a descriptive cross-sectional survey.
The population of the study comprised of 34 liquefied petroleum gas companies in
Kenya listed under the Cylinder Exchange Pool list. A census was conducted since the
population was small. The study used primary data that was collected through a selfadministered
questionnaire that was given to supply chain managers and operational
managers in the absence of the supply chain managers. Out of 34 liquefied petroleum
gas companies, 30 responded. A multiple regression analysis was used in establishing
the effect of reverse logistics on operational performance of liquefied petroleum gas
companies in Kenya. The findings revealed that liquefied petroleum gas companies in
Kenya have adopted reverse logistics practices to appreciable levels with repackaging
practices being the most adopted and recycling practices being the least adopted. Out
of all the indicators, employees being trained on the adoption of reverse logistics
practices ranked lowest. From the results, it was also noted that reverse logistics
practices had a significant relationship with cost and quality and while the P values of
the relationship between reverse logistics practices and flexibility as well as the
relationship between reverse logistics practices and dependability were insignificant, a
test of the correlation coefficient proved that a significant relationship exists. The
relationship between reverse logistics practices and speed was found to be insignificant
with remanufacturing practices being negatively related to speed. It is recommended
that top management should train employees to increase awareness on reverse logistics
practices and promote adoption. Similarly, the management should view reverse
logistics as a way of not only improving operational performance but also social,
environmental and economic performance. The study further recommends the use of
joint reverse logistics to lessen the financial risks, promote information-sharing and
capabilities and reduce uncertainty in the reverse supply chain.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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