Assessment of the role of reverse logistics on supply chain optimization: a case of plastic manufacturing firms in Kisumu County, Kenya

Abstract

The plastic industry in Kenya is currently facing a pivotal moment, contending with numerous challenges that hinder its sustainability and operational effectiveness. Plastic firms in Kisumu face inefficiencies in supply chain optimization, with order fulfillment below 70% versus 90% globally, delivery delays of 7–14 days versus 2–3 days, and customer satisfaction at 64% versus 85% in emerging economies such as Vietnam. Weak reverse logistics disrupt inputs, underscoring the need for recovery, recycling, and remanufacturing solutions. A significant issue is the widespread absence of a structured approach to managing plastic products at the end of their life cycle, worsening environmental issues and wasting valuable economic prospects. In this light, the implementation of reverse logistics is identified as a crucial strategic requirement. Reverse logistics, which involves the movement of goods from their final destination for value recovery or appropriate disposal, presents an effective solution to various challenges faced by the sector. As environmental pollution and resource depletion have become growing concerns, manufacturing companies have recognized that recovering used products is an eco-friendly approach to promoting sustainable development. However, many businesses struggle with the challenge of integrating product recovery processes into their existing forward logistics systems. Supply chain optimization is a critical concern for businesses seeking to maximize efficiency, minimize costs, and deliver value to customers. As global markets continue to evolve, companies are constantly seeking innovative methods to streamline their supply chain processes and gain a competitive advantage. The improper disposal and management of plastic waste not only pollute the environment but also disrupt the supply chain of plastic products, affecting various stakeholders from manufacturers to consumers. These inefficiencies disrupt plastic recovery, reuse, and recycling, undermining both environmental sustainability and supply chain efficiency. The general objective of this study was to evaluate the effect of reverse logistics on supply chain optimization within plastic manufacturing industry in Kisumu County. The study was guided by three specific objectives: to assess the effect of plastic waste collection, plastic waste product recovery and recycling as well as plastic waste remanufacturing on supply chain optimization. The study was anchored on Triple Bottom Line Theory and Stakeholder Theory. The study utilized correlational research design and based positivist research philosophy. The study population consisted of 120 employees of the two plastic manufacturing companies in Kisumu County who were surveyed using census technique. Data analysis employed multiple regression, and results presented in tables and charts. The results collectively demonstrated that reverse logistics practices positively influence supply chain optimization in plastic manufacturing firms in Kisumu County. In particular, waste collection through source separation and automatic sorting technologies, recorded the highest explanatory power (R² = 0.502) followed by mechanical and chemical recycling (R² = 0.308) and lastly remanufacturing practices (R² = 0.134). The study concluded that improving reverse logistics activities enhances supply chain optimization. The study recommends that firms adopt advanced sorting and recycling technologies, establish partnerships with waste collectors, and integrate reverse logistics into supply chain planning to promote a circular economy and sustainable development. The study may help the plastic manufacturing sector discern the logistical bottlenecks that impede the recycling and disposal of plastic waste. The study’s findings would benefit not only plastic manufacturers but also policymakers, environmental management agencies, informal waste collectors, and the Kisumu County Government in designing effective waste recovery systems