Background of the Study
Reverse logistics refers to the process of moving goods from their final destination back to the manufacturer or supplier for reuse, recycling, disposal, or remanufacturing. In the context of a manufacturing giant like Dangote Cement Plc, reverse logistics plays an increasingly important role in reducing waste, improving sustainability, and enhancing profitability (Olayemi & Oyedepo, 2023). For a company like Dangote Cement, managing the return of defective products, packaging, and unsold stock is critical for minimizing costs and maintaining product quality.
In Taraba State, Dangote Cement Plc operates in a market that demands high-quality cement products. Effective reverse logistics strategies can contribute to profitability by reducing wastage, improving inventory management, and ensuring that defective or excess products are efficiently handled (Abdullahi & Lawal, 2024). The company's ability to implement effective reverse logistics processes, such as the return and repair of unsellable goods or repurposing packaging materials, can have a direct impact on reducing operational costs and increasing profit margins.
However, the reverse logistics process also presents challenges, such as high transportation costs, difficulty in managing returns in remote locations, and the need for effective tracking and handling systems. This study aims to examine how Dangote Cement Plc implements reverse logistics strategies in Taraba State and assess the effect of these strategies on the company’s profitability.
Statement of the Problem
Although reverse logistics is an important strategy for reducing operational costs and increasing sustainability, many manufacturing firms, including Dangote Cement Plc, face challenges in implementing efficient reverse logistics processes. This inefficiency often results in higher costs, reduced profitability, and negative environmental impacts. This study seeks to examine how Dangote Cement Plc in Taraba State is addressing these challenges and the role of reverse logistics in enhancing profitability.
Objectives of the Study
1. To assess the reverse logistics strategies implemented by Dangote Cement Plc in Taraba State.
2. To evaluate the impact of reverse logistics on profitability at Dangote Cement Plc.
3. To identify the challenges faced by Dangote Cement Plc in implementing reverse logistics strategies.
Research Questions
1. What reverse logistics strategies are employed by Dangote Cement Plc in Taraba State?
2. How does reverse logistics impact profitability at Dangote Cement Plc?
3. What challenges does Dangote Cement Plc face in implementing reverse logistics in Taraba State?
Research Hypotheses
1. There is a significant relationship between reverse logistics strategies and profitability at Dangote Cement Plc.
2. Reverse logistics strategies have a positive impact on operational cost reduction at Dangote Cement Plc.
3. There are significant challenges in the effective implementation of reverse logistics strategies at Dangote Cement Plc.
Scope and Limitations of the Study
This study will focus on the reverse logistics practices of Dangote Cement Plc in Taraba State and their impact on profitability. Data will be collected through interviews with logistics managers, employees, and other key stakeholders. Limitations include the difficulty in accessing specific financial data and potential biases in reporting operational challenges.
Definitions of Terms
• Reverse Logistics: The process of moving goods from the consumer back to the manufacturer or supplier for reuse, recycling, disposal, or remanufacturing.
• Profitability: The ability of a company to generate income relative to its revenue and expenses.
• Operational Cost: The expenses incurred in the day-to-day functioning of a business, such as transportation, handling, and maintenance costs.
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