Abstract

This research focused on investigating the effects of reverse logistics on the operational performance of CONGENI Buea. Reverse logistics is the backward movement of goods and information from place of destination back to the place of origin. That is, it is the movement of goods and information from where it was sent to, to where it originally came from. This piece of work focuses on reverse logistics as a determinant factor for the fall or rise in the performance of COGENI Buea.

The dimension of the study was delimited to three reverse logistics which are material recycling, material disposal and return policy. The study adopted a survey research design is used quantitatively to describe specific aspects of a given population and this aspects often involves examining the relationship among variables. A questionnaire was used as a source of data collection. A probability sampling technique was employed in the study.

This study was out to examine the effect of reverse logistics on the performance of COGENI in Buea. In doing this, the study set out three specific objectives which will be discussed here. The first specific objective was to evaluate the effect of return policy on the performance of COGENI Buea and the results indicate a positive significant effect on the performance of COGENI. The t- statistics result on table 4.11 indicates that material recycling (remanufacturing) has a positive significant effect on the performance of COGENI Buea.

CHAPTER ONE

INTRODUCTION

1.1 Background To The Study

Logistics originated from the word logistique or logic in French language meaning storage. It was a concept that was mostly practiced by the military to manage its troops and weapons supply.  The United States started transporting their agricultural products in the 19th century and saw the need for logistics in management science.

This started in 1964. It is interesting to know that this concept of logistics has evolved and developed in to the public sector in recent years up till now. Logistics is the planning, organizing, controlling and implementing the flow of goods, passengers and information from point of origin to point of destination.

However, with all this evolvements reverse logistics was an item of it but never really defined or mentioned as a vital part in the logistics practice. That reverse logistics was happening under covers and wasn’t really exercised as a concept on its own. Until James Stock mentioned it for the first time.

In his white paper known as “reverse logistics” which was published by the council of logistics management in (1992). In this same year (1992) Pohlen and Farris also defined reverse logistics guided by marketing principles and concepts. They said reverse logistics is the movement of goods from consumer towards the producer in a channel of distribution. Reverse logistics became an interesting part so much so that it was refined in subsequent publications by stock in 1998 in a paper titled the development and implementation of reverse logistics and by Rogers an Tibben Lembke (1999) in a book published by the reverse logistics association titled Going backwards.

Reverse logistics also had several competing words like reversed logistics, return logistics, retro logistics or reverse distribution. Reverse logistics is the process of moving goods from their typical destination back to the origin either for recycling, disposal or replenishment. That is all activities involved from the moment goods are delivered to the customer in respect to the manufacturer.

In Africa reverse Logistics has been incorporated into the manufacturing Industry, service and medical firms though the level of adoption varies. For Manufacturing Industry, reverse logistics plays a vital role  in ensuring profitability and survival. These companies practice reverse Logistics through reuse and proper disposal.

There are several benefits companies can benefits from practicing reverse Logistics. One of the biggest benefits is reduced costs in terms of administration costs, transportation costs and after-sales costs. Other benefits include increased speed and flexibility, improved customer service and therefore greater customer loyalty and retention, improved quality, effective recovery of assets, improved transparency in the supply chain and greater market performance analysis. Reverse logistics would also improve the organizations’ corporate image by showing they are environmentally friendly. It also helps ensure firms follow the legal regulations which would exempt them from incurring financial penalties if they do not comply (Laosirihongthong, Adebanjo & Tan, 2013).Reverse logistics is not without its challenges.

The recovery efforts involved in reverselogistics are capital-intensive (Tibben-Lembke, 2002). Necessary equipment such as reverse logistics software and recycling equipment would be required. Employees would also need to be trained. Other challenges include management inattention, lack of sufficient financial resources to invest in reverse logistics, lack of awareness, lack of appropriate performance management system, limited forecasting and planning vcgand legal issues(Sharma, Panda, Mahapatra and Sahu, 2011).

It is interesting to know that reverse logistics has a negative impact on companies practicing Just In Time system of purchase because it usually takes longer than necessary to deliver the right products if reverse logistics is practiced.  This has always been and will become a problem in the practice of reverse logistics.

Reverse logistics also refers to the process of managing and controlling the flow of goods, materials and information from the point of consumption back to the point of origin for the purpose of recapturing value or  proper dispoal.in other words, it is the process of managing the retun of goods from the end consumer back to the manufacturer or retailer.Reverse logistics can encompass a wide range of activities including product returns, repairs and refurbishments,recalls, end –of –life disposal, and recyclimg.The goal of revese logistics is to optimize the value of the return product and  minimize the costs associated with the reverse logistics process.

Reverse logistics has become increasingly important in recent years due to a number of factors, including the rise of commerce, the growing popularity of sustainability and environmentalism, and the increasing complexity of global supply chains.Effective  reverse logistics can help companies reduce waste and costs while improving customer satisfaction and loyalty

Reverse logistics is comprise of

Types of reverse logistics;Reverse logistics can be categorized in to three main types which include product returns, end-of-life recycling and srvices parts logistics.product returns  refer to the return of product by customers due to defects damages, or other reasons.End of life recycling refers to the proper disposal and recycling of products that are no longer useable.service parts logistics involves the management and delivery of spare parts for repairs and maintenance.

Benefits of reverse logistics; Reverse logistics can provide a number of benefits for COGENI  including increased customer satisfaction, reduced waste and costs, improved sustainability and environmental performance, and enhance brand reputation.

Challenges of reverse logistics;Reverse logistics can be complex and challenging due to the need to manage multiple stakeholders , handle a wide range of product types and conditions, and navigate legal and regulatory requirements , Effective reverse logistics requires careful planning , coordination, and communication across all stages of the process.

Tecnologies for reverse logistics; There are a number of technologies that can support reverse logistics including automated sorting and processing systems ,barcode tracking, reverse auctions, and online market places for selling returned or refurbished products.

Reverse logistics and circular economy;Reverse logistics is a key element of the circular economy which aims to minimize waste and maximize the value of resources by embracing reverse logistics, companies can reduce their environmental impact and create new revenue streams from the recovery and reuse of materials

1.2 Statement of the problem

Customers of every sector cannot be completely satisfied without goods reaching them and these goods cannot reach them if logistics does not take place. Logistics plays a vital role in the production and distribution of goods and or services more so to CONGENI Buea. However reverse logistics is the reverse of direct logistics which is not always for the worse anyway. Reverse logistics takes place in CONGENI Buea almost all the time.

The performance of CONGENI Buea can be determined by many factors but is sales is altered or drops the performance can generally be considered as poor. A fall in sales can be brought about by many factors but this work focuses on reverse logistics to determine the fall or rise in the performance of CONGENI BUEA.

In situations where the goods delivered are more than expected, where the materials delivered are destroyed or when goods are delivered wrongly. These becomes a very big problem to construction stores and construction companies like CONGENI Buea especially if the Goods where ordered on special request. Sometimes even on command from their customers and as such any delay caused by the logistics or any other incident can be diminishing to the sales of the organization and more so if reverse logistics takes place it will lead to customers loosing interests in the construction store which makes it difficult to be able to sell their products. This will have backward results on CONGENI Buea.

1.3 Research questions

1. To what extent do return policies and procedures influence the performance of CONGENI?
2. To what extent does remanufacturing influence the performance of CONGENI?
3. To what extent will waste disposal influence the performance of CONGENI?

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