ANALYSIS OF REVERSE LOGISTICS PRACTICE OF WATER AND SOFT DRINK PLASTIC BOTTLE COMPANIES IN ADDIS ABABA. The Case of: Top water, Aqua Addis water and Coca Cola soft drink companies.

Abstract

This study analyzed the reverse logistic practice of water and soft drink plastic bottles in Addis Ababa. It is very obvious to see plastic bottle wastes everywhere in the city of Addis Ababa, and manufacturing sectors exploit and brought biggest pollution to the natural environment. Thus, it seems very important to seek for more modern solutions which would solve certain problems. Therefore, one of the most beneficial opportunities includes reverse logistics practice, which is the relevant part of supply chain management. Reverse logistics is a profit-oriented strategy, its initial aim is to minimize the negative environmental emissions, and on the other hand, companies can be able to reduce their operating costs. This study was prepared to develop a stronger understanding on the basics of reverse logistics and it aims to investigate the critical factors for developing a successful reverse logistics practice, to indicate a strategic framework that could guide companies to implement or to improve their reverse logistics practice. Further, this thesis analyzed the role of the community, plastic bottle using companies, plastic bottle recycling companies, government and other concerned bodies to the contribution towards the process of reverse logistics which in turn to address the problem. To conduct this study, qualitative and quantitative data was collected from both primary and secondary sources of data. To collect data, Survey questionnaires were distributed for a total of 105 respondents and managers of each company were interviewed. Again, to meet the stated objectives, the collected qualitative data was analyzed by using phenomenological data analysis method and to analyze the quantitative data, SPSS and descriptive method was employed. Finally, the findings of the research showed that the community lacks knowledge on the practice of reverse logistics, companies strategic plan doesn’t include the issue and still there is less commitment of top level managers to the practice of reverse logistic, lack of sufficient resource. To solve these problems the researcher recommended effective community and consumer awareness, plastic producing companies should be responsible to their post-sale plastic bottles, top level managers attention to reverse logistics, setting clear separate environmental policies and regulation related to reverse logistics practice, companies should collaborate with small scale enterprises, plastic recycling companies and government in order to minimize the damage to the environment and to create additional profit.