Reverse Logistics Strategies and Operational Efficiency of Beverage Manufacturing Firms in Kenya: A Case of East African Breweries Limited

Abstract

There is growing interest in reverse logistics strategies globally, driven by their potential to enhance sustainability, reduce costs, improve customer satisfaction, and strengthen operational performance. In the manufacturing sector, firms are increasingly adopting reverse logistics to minimize waste, recover value, and comply with environmental regulations. This study examined the effect of reverse logistics strategies on operational efficiency in the beverage manufacturing sector in Kenya, using East African Breweries Limited (EABL) as a case study. Specifically, the study sought to evaluate the influence of product return, recycling, reuse, and remanufacturing strategies on operational efficiency, and assess the moderating role of the legal environment. The study was anchored on Institutional Theory, Theory of Constraints, the Supply Chain Operations Reference (SCOR) model, and Stakeholder Theory. A cross-sectional research design was employed, and data were collected through structured questionnaires targeting a sample of 212 respondents drawn from key departments including supply chain, logistics, sustainability, and production. Data analysis was conducted using SPSS Version 28, applying descriptive statistics, correlation, regression, and moderation analysis. Findings revealed that product and remanufacturing strategies had a statistically significant positive effect on operational efficiency. Conversely, product return and recycling strategies also showed strong significant effects. Moderation analysis indicated effectiveness of reverse logistics strategies on operational efficiency is strengthened when the legal environment is more supportive or strictly enforced. The study concluded that reverse logistics strategies particularly reuse, recycling, and remanufacturing contribute positively to operational efficiency when properly integrated into supply chain processes. However, regulatory compliance alone does not guarantee efficiency gains unless aligned with internal operations. It is therefore recommended that EABL scale up its investment in reuse and remanufacturing infrastructure, adopt advanced recycling technologies, streamline return systems, and digitize reverse logistics processes.