Reverse Logistics Practice and Challenges of Soft Drink Manufacturing Firms in Addis Ababa, Ethiopia
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Date
2022-06
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Addis Ababa University
Abstract
Reverse logistics is a flow of materials from a final consumption in an oppositeroute in order toregain value or to dispose of wastes. This research examines reverse logistics practice of soft
drink manufacturing firm in Addis Ababa, Ethiopia. The motivations to adopt reverse logistics, their extent of implementing and challenges occ urred while implementing reverse logistics has
been studied. The research used quantitative research approach and descriptive research method. To collect data questionnaire constructed in five point likert scale was used. The study
was conducted on MOHA So ft Drinks Industry Share Company And East Africa Bottling Share Company which are the two giant soft drink companies in Ethiopia. The research used purposive
sampling technique because the research requires individuals who are better knowledgeable about the issues. Based on the result of the analysis, soft drink manufacturing firms implement
reverse logistics mostly for its economical benefit but somehow also to address their social resp onsibility and environmental issues but policy is the least of motivation because government
involvement is low. The study conclude that t here is a high reverse logistics implementation in the companies, except few performances like creating profile for cu stomers and make assessment
on optional recovery options. In addition, the research revealed that technology, knowledge and policy are the major challenges. Lack of advanced technologies, low understanding of
customers and lack of appropriate policy for r everse logistics have effect on the effectiveness of reverse logistics implementation. Finally, it is concluded that, firms should adapt modern
technologies to improve their ability on return tracking, data collection and product handling. Creating awaren ess for all stakeholders about the advantage of reverse logistics also helps to
increase the level of efficiency and government should have appropriate policies to encourage or force companies to perform reverse logistics properly.
Key words: Reverse Log istics, Soft Drink Industry, Refillable Glass Bottles,