The Effect of Revers Logistics Practices on Operational Performance:

A case study of Some Selected Manufacturing Companies in Dire Dawa City Administration

Abstract

Reverse logistics is the management of the end life of product globally advantages like improvement of competitiveness, regaining values, positive environmental impact and better image for an organization. The purpose of this study was to examine the effects of reverse logistics practices in manufacturing companies (mineral water and Coca cola) companies found in Dire Dawa. To address this study both descriptive and explanatory research design were employed. The current total numbers of employees in both companies are 2613 (Coca Cola bottling company (388) and (Mineral water company (2225) and the researchers took 200 employees as a sample. To achieve the objective of the study, both primary and secondary data source were used. Correlational analysis and multiple linear regressions will also carry out to test the relationship between each variable. Data obtained through questionnaire was analyzed by using descriptive statics: mean and standard deviation supported by Statistical Package for Social Sciences (SPSSversion22) and to come up with statistics that show the relationship between the independent variables and dependent variable inferential statistics was used. The major findings indicated that, most of revers logistics practices have significance effect on operational performance. Whereas product repackaging practices has insignificance effect on operational performance. In addition to this most of revers logistics practices are moderately practiced with in the case companies. This study therefore, recommends that reverse logistics practice is very important in developing efficient and effective management of waste products. Therefore, measures to facilitate collection of used packaging and expired products should be instituted within the country. This can be done by having collection points where customers could drop off used containers and expired products.