Reverse logistics activities in manufacturing firms in the Vaal Triangle area

Abstract

The primary objective of this study was to investigate the influence of reverse logistics practices on environmental sustainability and business performance in manufacturing firms in the Vaal Triangle Region. The study employed a quantitative research method that used a survey questionnaire to gather data from supply chain professionals operating in the manufacturing small and medium-sized enterprise (SME) sector. The survey was self-administered to 350 randomly selected respondents who were mainly supply chain professionals drawn from various manufacturing firms in the Vaal Triangle region. Despite the large number of respondents, only 201 questionnaires were usable, which represented a response rate of 57 per cent. Data obtained were analysed using SPSS 25.0 in which descriptive statistics were analysed to assess the demographic characteristics of the respondents. An analysis of mean scores was performed to establish the perceptions of supply chain professionals toward the levels of the constructs in manufacturing firms. Besides, the study made use of correlation and regression analyses to examine the causal relationships between reverse logistics practices on environmental sustainability and business performance. The results of the study show that the identified reserve logistics practices (repairs, remanufacturing, recycle, recondition and disposal) were insignificantly correlated to environmental sustainability. However, environmental sustainability was significantly correlated to the two sub-dimensions of business performance, namely, sales and profit. Likewise, in the regression analysis, all reverse logistics components were statistically insignificant, whereas environmental sustainability significantly influenced both profits and sales. The study thus offered a contrasting perspective from the general findings that have found reverse logistics to be a significant contributor to sustainability initiatives. However, the study confirms the importance of environmental sustainability as a predictor of business performance in manufacturing firms.