REVERSE LOGISTICS PRACTICES IN FOOD PROCESSING FIRMS IN NAIROBI A CASE STUDY OF ENNSVALLEY BAKERY LIMITED

BACKGROUND OF THE STUDY Reverse logistics The flow of products from the final consumer to industry (source) due to factors like: defective products or damages, expired dates, Reverse Logistics Practices Operations involved in the management of the opposite flow of products to reclaim value e.g. by remanufacturing, repair, or recycling which can in tern create profitable business opportunities. Food Processing e.g. fruit juice, canned food, cake processors.

THEORETICAL FOUNDATION OF STUDY Our study focused on the food processing industry because they are homogenous and are much easier to classify since the end users are the same unlike the non-food processing industries which are heterogeneous and their end users are varied. Research questions what are reverse logistics practices used in food processing firms?; What are the drivers of reverse logistics in food processing firms? and what are the effects of reverse logistics practices in food processing firms?

Research objectives To establish the reverse logistics practices in food processing firms; To determine the drivers of reverse logistics practices in food processing firms; and to identify the effects of reverse logistics practices in food processing firms.

LITERATURE REVIEW There are various activities associated with reverse logistics which if facilitated effectively and efficiently helps a company meet its corporate objectives. The activities include remanufacturing, recycling, reconditioning, warranty management, call-center management and transportation (Stock et al., 2006). Reverse logistics is increasing become an area of organizational competitive advantage, making the pursuit of this function a strategic decision (Schwartz, 2000). The potential for the direct profitability is undoubtedly one of the possible drivers of reverse logistics as well as the need to provide superior customer service (Rogers and Tibben-Lembke, 1999).

RESEARCH METHODOLOGY The design adapted for this research was a case study method with Ennsvalley Bakery Limited being the unit of study. Sampling is the procedure of data collection whereby few individuals are selected to represent the entire population. In this study a simple stratified sampling was used to select a sample of respondents. The data collected was analyzed using Microsoft Excel. Quantitative data was analyzed using descriptive statistics e.g. measures of central tendencies and means which were generated using the aid of software.

FINDINGS The findings suggest that returns handling activities at Ennsvalley embodied practices such as: transportation and quarantining, repackaging and labeling, return disposal. Reverse logistics has occasioned: increased customer satisfaction, improved environmental conservation, improved profitability, reduced operational cost, improved competitiveness and brand image. Drivers of adapting reverse logistics practices included: adaptation to change and compliance to environmental and consumer regulations.

CONCLUSIONS AND RECOMMENDATIONS Reverse logistics at Ennsvalley broadly involves the collection, selection, processing and return to market or disposal of the returns from supplies. These practices are increasingly driven by operational excellence standards and the need to abide by set consumer and environmental regulations. Effects have accrued as a result of reverse logistics practices at Ennsvalley such as: increased customer satisfaction, improved environmental conservation, improved profitability, reduced operational cost, improved competitiveness and brand image.

SUGGESTIONS FOR FURTHER STUDY Further studies should be done on reverse logistics practices particularly in manufacturing and service providing firms in Kenya and the World at large. Other research designs such as surveys may also be adapted for more effective results on this research work.

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