Reverse Logistics and Performance of Footwear Manufacturing Firms in Kenya.

Abstract

The use of reverse logistics improves the corporate image and environmental performance, which in turn leads to a firms’ competitive advantage. However, in the wake of increasing environmental pollution and climate change, the use of reverse logistics in footwear manufacturing firms remains low. The performance of footwear manufacturing firms in Kenya has been declining over the years. The objective was to assess effect of reverse logistics on performance of footwear manufacturing firms in Kenya. This study made use of cross-sectional study design. The unit of analysis was all the 16 footwear manufacturing firms in Kenya. The unit of observation comprised of the managers in four departments, which include marketing, procurement/supply chain, operations and store in footwear manufacturing firms in Kenya. The target population was 64 marketing, procurement/supply chain, operations and store managers in the 16 footwear manufacturing firms in Kenya. The study used a census approach and hence involved the entire target population of 16 footwear manufacturing firms with 4 respondents from each firm. The study made use of primary data. Primary data was collected by use of semi-structured questionnaires comprising of closed ended and open ended questions. Qualitative data was analyzed using thematic analysis. The questionnaires generated quantitative data. Inferential and descriptive statistics were used for quantitative data analysis with the help of SPSS version 25 statistical software. Descriptive statistics included frequency distribution, percentages, standard deviation and mean. Inferential statistics included regression and correlation analysis. The study findings were displayed in figures (bar charts and pie charts) and tables. The study found that reverse logistics has a positive and significant effect on the performance of footwear manufacturing firms in Kenya. This study recommends that the management should adopt reusable packaging, recycling, repackaging and product return to help in lowering material costs hence improving profit and the performance of the firm. Moreover, reverse logistics adds value, reduces risk and ensures a continuous movement of goods.