IMPACT OF REVERSE LOGISTIC PRACTICES ON SUSTAINABLE PERFORMANCE IN MANUFACTURING SUPPLY CHAINS: INDUSTRIAL EXPERTS’ PERSPECTIVE

Abstract

One of the major concerns that companies have is supporting a sustainable environment. Customers’ awareness of environmentally friendly initiatives has increased over the years, driving firms to become more responsive 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 emphasize supporting a 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 manufacturing companies in the Pallekele Industrial Zone and to establish the Impact of adoption of reverse logistics practices on Sustainable performance in manufacturing Supply Chains. The study used a descriptive cross sectional survey. The population of the study comprised of 50 Manufacturing companies which are located in Pallekele industrial park. A census was conducted since the population was small. The study used primary data collected through a self administered questionnaire given to supply chain managers and operational managers in the absence of the supply chain managers. Out of 50 manufacturing companies, 41 responded. Regression analysis was used in establishing the Impact of reverse logistics on Sustainable performance in manufacturing supply chains. The findings revealed that Manufacturing Firms had adopted reverse logistics practices to appreciable levels, with recycling practices being the most adopted and reuse practices being the least adopted. The results also noted that reverse logistics practices had a significant positive relationship with the Economic and Environmental performance of supply chains, a test of the correlation coefficient proved that a significant relationship exists. It is recommended that top management should train employees to increase awareness of reverse logistics practices and promote adoption. Similarly, the management should view reverse logistics as a way of not only improving environmental and economic performance but also social, and operational performance