EFFECTS OF REVERSE LOGISTIC PRACTICES ON THE PERFORMANCE OF FAST MOVING CONSUMER GOODS COMPANIES IN KENYA

Abstract

Reverse logistics is an area of growing academic concern, as reflected in the increase in related literaturefrom scholars around the globe. The main objective of this study was to find out the effects of reverselogistics practices on the performance of FMCG firms in Kenya. Specifically the study was to identify the effectof as Product Recalls, Manufacturing Returns, Reuse, Recycling, Repackaging and the influence of Salvageand scrap disposal on the performance of FMCG firms in Kenya. The research design employed in this studywas descriptive. This study relied heavily on secondary data as is the case with most desktop research study.The study reviewed journal articles, unpublished papers and conference papers on reverse logistics. The paperemployed a desktop approach to provide answers to the research objectives. Specifically, the paper used adescriptive approach to gather information from peer reviewed publications such as, journal articles,environmental organizations reports and books. The study found that reverse logistics practices have a directand significant effect on organizational performance of FMCG Companies. The study recommended thatmanagement of FMCG Companies need to adopt reverse logistics practices such as recycling, reuse,remanufacture, repackaging, recall and waste disposal strategies. It also recommended that within the FMCGsupply chains, firms should embrace recycling as an investment for improved performance, thereby movingtowards sustainable growth which is one of the foundations of Kenyan Vision 2030.