Remanufacturing Practices and Value Chain Performance in the Food and Beverage Industry in Kenya.

Abstract

With the age of e-procurement and consumer awareness, allowance for product returns is key in ensuring customer satisfaction and customer return. Value chains have been facing challenges such as waste accumulation, scarce resources and high material costs which could be reduced by returning waste products to the value chains for reusing, recycling and remanufacturing. The main objective of this study was to examine the influence of product returns on value chain performance in the food and beverage industry in Kenya. The study adopted a descriptive research design and the target population was 291 companies in the food and beverage industry. The sample population involved 74 companies in the food and beverage industry. Self-administered structured questionnaires were used to collect primary data. Data was analyzed using descriptive and inferential statistics. The study found that value chain performance was influenced positively and significantly by product remanufacturing practices and most of the food and beverage firms in the industry that are implementing remanufacturing practices are improving their value chain performance by minimizing waste and the need to purchase new raw materials thereby increasing operational efficiency. This research was based on remanufacturing practices and value chain performance in the food and beverage industry in Kenya and there is a need to undertake similar studies in retail or commercial sector and in other countries in order to uncover the underlying relationships between remanufacturing practices and value chain performance and the findings may identify interesting comparisons. This study adds to existing research on the subject of remanufacturing practices and value chain performance as it reveals that remanufacturing practices are necessary to promote optimization of the performance of the value chains. Based on the current Literature, studies focusing on the implementation of the remanufacturing practices are limited. There is no study that is linking remanufacturing practices and value chain performance of the food and beverage industry. Therefore, this is a pioneering study in both content and context.