An Assessment Of Reverse Logistics: The Case Of Sur Construction Plc
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Date
2018-06-08
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Addis Ababa University
Abstract
Reverse logistics is the management of the end life of product and has advantages like
improvement of competitiveness, regaining values, positive environmental impact and better
image for an organization. It is also a new field compared to conventional or forward logistics.
As a result utilization of reverse logistics in organization like Sur Construction PLC to lesser
compare to forward logistics. Some of the main problem of the company related to reverse
logistics was absence of recovery like remanufacturing, lack of official management or formal
return and controlling system for used materials and lack of proper disposal system in the
organization simply consider all returns as scrap and forward to bid of second hand market. As
result the thesis aim to assess reverse logistics in terms of its drivers, process, activities to
identify the opportunities and challenges in the organization and provide practical remedy to the
organization.
The study applied descriptive research design and a sample of 66 was used to represent
population of 200 and gathered both qualitative from stratified random sampling using
probability proportional allocation from each stratum and quantitative data a applied both
combination of convenience and purposive. Data was analyzed using Statistical Package for
Social Sciences and Microsoft-excel percentages, frequency tables, used to carry out those
descriptive statistical analyses.
The study found that the organization had the opportunity of massive used material generated
from spare parts, tyre and other packages and scraps organized informally without proper
documents and with mind setup of the second hand market and poor in recovering especially
remanufacturing and disposal like land filling and incineration. The main challenges to adopt
Reverse logistics in the company were top management commitment and management style,
weak linkage with local manufacturing and wrong perception to local product (judge as poor
quality). Finally, the researcher recommends to incorporate reverse logistics in the organization
structure, waste material (that couldn’t recover) apply proper disposal method like land filling
and incineration especially for those toxic materials like drained oil from thousands of
construction equipment’s, and for better recovery (remanufacturing) either the company has to
own its own remanufacturing workshop like recapping machine for tyre or form strong linkage
with local manufacturer in addition to adjustment of workers mindset up to local products.
Description
Keywords
Drivers process and activities, Remanufacturing, Disposal