Reverse logistics strategies and operational effectiveness in beverage companies in Uganda: a case of Century Bottling Company

Abstract

The intent of this study was to evaluate the influence of reverse logistics strategies on operational effectiveness in beverage companies in Uganda. Closed loop, Joint reverse and Outsource reverse logistics strategies were assessed to evaluate their influence on cost effectiveness and return rate aspects. Using Century Bottling Company as a case study and undertaking a multi-methodological approach, data was collected using direct interviews, questionnaires and Focused group Discussions. The study used a sample size of 118 staff at strategic, tactical and operational levels and response rate of 73.3% was realized. Both quantitative and qualitative data analysis techniques were employed to obtain empirical and inferential findings. The finding of the study revealed that closed loop and joint reverse logistic strategies are the most frequently used strategies in the management of returnable packages while outsourcing strategy was not used by Century Bottling Company. The findings further revealed that reverse logistics strategies have positive effect on cost effectiveness observed at r2=0.495 whilst they contribute to return rate at r2=0.458. Therefore the researcher concluded that reverse logistics strategies positively and moderately influence cost effectiveness and return rate of returnable packages. The joint reverse strategy highly influences return rate compared to the rest of the strategies. Basing on the findings, company should consider strengthening the applicability of the Joint and Closed loop strategies to ensure minimization of reverse logistics processes costs. They should also utilize the Joint reverse strategy during the peak season since this strategy highly influences return rate hence reducing on stock outs of returnable packages.