REVERSE LOGISTICS PRODUCT DISPOSITION PRACTICE AND THE PERFORMANCE OF LARGE MANUFACTURING FIRMS IN KENYA
Abstract
Background: In a world of scarce resources and disposal capacities, recovery of used products and materials is key to supporting a growing population at an increasing level of consumption. Globally there are pressures on organizations to act responsibly in terms of protection of the environment and create value for all stakeholders. Even though reverse logistics has gained a lot of relevance in most organizations very little research has been conducted on the subject. As a result, there is a great opportunity for researchers and academicians to advance the study of reverse logistics in order to fill this gap.
Methodology: This study sought to examine the influence of reverse logistics product disposition practice on the performance of large manufacturing firms in Kenya. The study used descriptive design and target population was large manufacturing firms which are registered with Kenya Association of Manufacturers. Data was analyzed using descriptive and inferential statistics.
Results: Pearson correlation coefficient for the output indicated that product disposition practice was able to explain 43.6% variations in the firm performance.
Conclusions and Recommendations: The study concluded that there was a significant positive relationship between product disposition practice and firm performance. The study recommended that product disposition practice be implemented by manufacturing firms as a way of boosting firm performance. The paper’s findings may motivate local manufacturing firms to implement disposition practices when supported by innovative, suitable tools for the proper management of the information and material flow in the chain.
Keywords: Supply Chain Management, Reverse Logistics, Product Disposition, Manufacturing Firms.
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