Abstract
Sustainability in business is becoming a concept that no serious organization can overlook, especially in supply chain operations. A lot of interest has been built on the concept of sustainability in the recent past because of the mounting pressure from the market, government and international non-governmental bodies especially on sustainable development and environmental protection. To achieve sustainability in the supply chain, organizations currently adopt green supply chain management (GSCM) practices. Reverse logistics is one of the commonly practiced GSCM practice. This study intended to examine the effect of reverse logistics on operational performance of sisal processing firms in Nakuru County. The research adopted correlational research design and was a cross sectional survey. It was guided by two objectives; to establish the effect of product recovery on operational performance of sisal processing firms in Nakuru County and to determine the effect of product reuse on operational performance of sisal processing firms in Nakuru County. The target population for the study was employees working in all sisal processing firms in Nakuru County. Purposive sampling was used to select employees in production, procurement, accounting and finance and marketing departments while stratifies random sampling was used to determine the sample for the study. Data will be collected through a structured questionnaire with 5 points likert scale and analyzed through SPSS version 21. Descriptive statistics was used to describe the aspects of reverse logistics and operational performance. Regression analysis was used to determine the effect of reverse logistics on operational performance. The results were presented using tables accompanied with explanations. The study revealed that product recovery and product reuse both have positive effect on operational performance of sisal processing firms. The researcher recommended that management of processing firms should look at reverse logistics as a strategy to achieve competitive advantage and manage it strategically just like other key management areas. The researcher recommended that study should be conducted on the key determinants and drivers of reverse logistics. Further study should be conducted on the relationship between reverse logistics and social performance of processing/manufacturing organizations. Lastly, further study should be conducted on the role of top management in adoption of reverse logistics practices.
Highlights
Global Environmental Management Services an organization based in Saudi Arabia has mandated itself to provide technology, International Journal of Economics, Finance and Management Sciences 2015; 3(5): 556-565 systems, products and services for waste management, industrial effluent treatment, sewage treatment, odour control, bioremediation and environmental cleanup (Global Environmental Management Services, 2015)
Reverse logistics as a supply chain concept emerged alongside other green supply chain management practices in an attempt to enhance sustainability in organizational operations (Green et al, 2012)
This study sought to help bridge this gap by determining the effect of reverse logistics on operational performance of sisal processing firms in Nakuru County
Summary
The issue of sustainable business processes and activities is becoming everyone’s business in the current business environment. A part from adopting the international and national standards and strategies in ensuring sustainability and environmental conservation, most organizations have developed organizational standards and strategies to take care of such interests (Global Environmental Management Services, 2015). Because of the much attention given to production and operation costs, sustainability and environmental conservation, organizations adopt initiatives and strategies to ensure costs are reduced to the lowest level possible and productivity is enhanced to the highest level possible. These strategies are adopted in all operations of business.
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