Reverse Logistics Bottlenecks and its impact on SCM - Emerging Trends in Africa
Article contributed by
CWMP Cedric Mbai - Kenya
Certified Global Warehouse Manager | Supply Chain Management | Inventory Management | Procurement and Logistics Management | Order Fulfillment Management | Stores Manager CILT| ICM | PGdip | MKISM
A warehouse and logistics professional with over 10 years of experience in the supply chain field and credentials from CILT, ICM,HGI and Moi University. Cedric's mission is to deliver optimal warehouse and logistics solutions that enhance customer satisfaction and business performance.
Cedric has successfully led and implemented projects that reduced costs, improved cycle times, increased inventory accuracy, and minimized damages and shrinkage.
Based on research, 9 out of 10 companies including small and medium enterprises are losing an average of 20% of all their reversal transactions. It has further led to customer loss due to poor service affecting the number of referral customers. The scenario hasn't improved yet even with the emerging trend of online buying and selling which has complicated the situation further. Below are some of the main issues that have been ascertained
Strengths within the reversal logistics
Growing awareness of the importance of sustainability and environmental responsibility.
A strong emphasis on customer satisfaction and loyalty.
Willingness to adopt new technologies and innovative solutions.
A focus on building strong relationships with suppliers and partners.
Availability of promising youthful manpower.
Improvement of infrastructure and transportation networks by some countries in Africa.
Weaknesses within the reversal logistics
Lack of infrastructure.
Limited technology adoption.
Inadequate regulatory framework.
Scarcity of resources.
Limited awareness and training.
Environmental impact (improper handling of returned goods can lead to environmental pollution)
Current opportunities within reversal logistics
Infrastructural development
Technological development and adoption.
Resources availability and expertise.
Facilitation of awareness and education support.
Regulatory fast-tracking.
Overall, addressing these opportunities and investing in improving reverse logistics processes can help African-based companies optimize their supply chains and enhance customer satisfaction.
Threats within reversal logistics
Delayed infrastructural development.
Lack of standardized regulations.
Limited technology adoption.
High costs.
Limited awareness and training.
Environmental impact.
Conclusion
In summary, the challenges of reverse logistics in African companies include limited awareness and training leading to inefficiencies, as well as potential environmental impacts on sustainability efforts due to improper handling of returned goods.