Association Between Reverse Logistics and Performance of General Plastics Limited in Kenya

Abstract

Reverse logistics is imperative for this industry for Plastics are not easy to decompose. Arguments and studies done in the field of reverse logistics and its association with organizational performance on the subject of reverse logistics focused more on the developed countries and those done in Kenya looked at other aspects of performance like supply chain performance, organizational effectiveness, ignoring the organizational performance in plastic industry. Such studies are however deficient and fail to address comprehensively how reverse logistics specifically reuse, remanufacturing and recycling directly impact on performance of the General Plastic industry. The purpose of this study was to examine the association between reverse logistics and organizational performance. The study sought to establish the association between remanufacturing and organizational performance, to examine the association between recycling and organizational performance and to determine association between reuse and organizational performance at General Plastics Limited. The study was guided by a conceptual framework with independent variable as reverse logistics and dependent variable as organizational performance. The target population for the study was 900 and sample size of 269 employees. Stratified random sampling was used to draw respondents in the sample. Descriptive statistics and correlation models were used to analyse data. The study revealed a positive and significant association between remanufacturing and organizations performance with the highest significant association existing between training of employees with a correlation coefficient of (r=.755, P=.002<.05). The study further revealed a positive and significant association between recycling and performance with the highest association existing between ensuring used goods and packages are returned to the suppliers and performance with a correlation coefficient of (r=.770, P=O.OOI<.05). :rhe study moreover revealed a positive and significant association between reuse and organizations performance with the highest significant association existing between designing products that can be put into reuse and performance with a correlation coefficient of (r=.942, P=0.002<.05). The study therefore concluded that reverse logistics practises all have positive and significant association with performance although at differing extents. The study recommends that the firm should train its employees more on reverse logistics practices, ensure used goods and packages are returned to the supplier and design product that can be put into reuse after their first use to improve its performance.