Practice, Challenges and Drivers of Reverse Logistics Management in Pharmaceutical Manufacturers in Ethiopia

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Date

2023-06

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Addis Ababa University

Abstract

The practice of reverse logistics management is an unexplored area in the pharmaceutical industry. Many companies have misunderstood the process and procedure involved and what it means. The main objective is to examine the extent of RL practices and drivers and to identify the main challenges in implementing reverse logistics management in drug manufacturing in Ethiopia. A mixed approach with a qualitative and exploratory research design was used in the study. The study sample consisted of 148 employees who were selected using a non-probabilistic sampling method from managers, marketing, finance, sales, logistics and supply chain departments with 70.5% response rate. The collected data from the respondents analyzed using the Statistical Package for Social Sciences (SPSS) V 23. To get a better result, both descriptive and inferential analyzes were used. The results showed that reuse, recycling, remanufacturing and refurbishing reverse logistics management were not practiced in human medicine and supply manufacturing companies. Rather, they made moderate use of recall and disposal practices for reverse logistics management. These practices were primarily derived through prioritization of population health and safety, legislation, corporate green image, environmental sustainability, customer satisfaction and top management initiation. Lack of tracking and traceability technology, financial constraints, lack of strategic planning, lack of training and lack of interest from top management were identified as the main challenges. The study recommended that pharmaceutical companies invest in tracking and tracing technology, understand the importance of RLM through training, and that regulators develop strategic planning and enforcement policies and guidance

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Keywords

Reverse logistic, Reverse Logistics Practice

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