Evaluation of the Use of Reverse Logistics on Organizational Profitability: A Case Study of Kenya Power Ltd, Kenya

The study focused on the role of reverse logistics (RL) in the overall profitability of the organization with regard to Kenya Power (KP). A descriptive case research design was adopted to establish whether there was a link between RL and profitability. Data was obtained by use of both structured questionnaires and interview schedules targeting employees working in Supply Chain Division of Kenya Power whose population was 156. A simple random sample of 112 respondents was actually used for the questionnaire and 3 top managers were sampled for the interview schedule. Piloting was done on 12 respondents selected using the half split method. Both primary and secondary data obtained was analyzed and presented with the aid of statistical package for social sciences (SPSS), which provided descriptive and inferential statistics. Correlation analysis was engaged to assist in determining whether and how independent and dependent variables related and thereafter content analysis was undertaken to establish the extent of the relationship between reverse logistics and profitability. The study established that reverse logistics activities had a significant contribution to organizational profitability and thereafter concluded that there was need for top management to plan properly, create awareness and direct more resources to reverse logistics activities in order to reap maximum benefit. It recommended for the development and implementation of the disposal plan alongside the procurement plan.