Reverse Logistics Practice, Challenges, And Its Role on Sustainable Supply Chain Performance: The Case of Ethiopian Pharmaceutical Supply Service
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Date
2023-06
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Addis Ababa University
Abstract
Reverse logistics play an important role in contributing to waste and resource management. Most of pharmaceutical reverse logistics practices focused on expiry drugs, product with short shelf life, overstocked medicines, and disposal of unused and unwanted pharmaceuticals. Moreover, inappropriate pharmaceutical waste disposal leads to serious personal and environmental health hazards. The primary objective of this study is to assess the reverse logistics practice, challenges, and its role in sustainable supply chain performance: the case of Ethiopian Pharmaceutical Supply Service. The research design was descriptive and explanatory implemented by an organizational-based cross-sectional survey from a 191-sample size in selected EPSS branches. Descriptive statistics used. Moreover, the relationship between reverse logistics practice and sustainable supply chain performance of EPSS computed by using correlation and multiple regression analysis. The finding showed that; EPSS moderately practiced redistribution of pharmaceuticals with a grand mean of 2.89, recall of quality defect pharmaceutical from customers, with a grand mean of 2.67. Whereas, recycling pharmaceutical packaging materials with a grand mean of 1.62, and disposal of unusable pharmaceuticals with a grand mean of 2.52 weakly practiced. Lack of appropriate technology, infrastructure, and lack of definitive rules and regulations on handling returned pharmaceutical products have high influence on implementing reverse logistics practice with a mean of 3.75 and 3.74, and 3.48 respectively. Finally, this study concludes that; Redistribution of pharmaceuticals across branches of EPSS, Recall of quality defect pharmaceuticals from customers, Recycling of pharmaceutical packaging materials and warehouse handling materials, and Disposal of unusable pharmaceuticals have significant and positive effect on the sustainable supply chain performance of EPSS. Generally, this study concludes that reverse logistics implementation in EPSS could contribute to improvement in the economic, environmental, and social performance of EPSS. EPSS should strengthen reverse logistics management system by aspiring to achieve its organizational vision “To be the most responsive and efficient pharmaceuticals supply chain organization in Africa by 2030.” (PSTP II, 2020).
Key words: Reverse logistics, sustainability performance, Triple-bottom line sustainably.
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Reverse logistics