Reverse logistics capabilities and supply chain performance in Ugandan pharmaceutical industry

Abstract

Efficient Reverse logistics in pharmaceutical industry is necessary for proper management of returns and recalls because medicines are high value products and very critical to the health of consumers as well as the environment. The aim of this research was to establish the effect of Reverse Logistics Capabilities on Supply Chain Performance and the moderating effect of Top Management Support. The study specifically addressed the following study objectives; To examine the effect of Logistics information management capability on supply chain performance; To examine the effect of Process formalization capability on supply chain performance; To examine the effect of flexibility capability on supply chain performance; To examine the moderating effect of Top management support between reverse logistics capabilities and supply chain performance. A cross sectional survey design was used, the study utilized a structured closed ended questionnaire for data collection from pharmaceutical supply chain companies including manufacturers, wholesale pharmacies and retail pharmacies in Kampala-central region, Uganda. A study population of 445 companies was considered for collection of quantitative data where a sample of 205 was used. The results of multiple regression support the hypothesis that reverse logistics capabilities affect supply chain performance. The effect of logistics information management systems, process formalization capability and flexibility capability on supply chain performance were all significant. The hierarchical regression however did not find any significant moderating effect of top management support between reverse logistics capabilities and supply chain performance. This may imply that top management doesn’t have to get directly involved in reverse logistics activities as long as the necessary capabilities have been provided.