CHAPTER ONE

GENERAL INTRODUCTION

1.1. Background to the Study 

During the last decade, reverse logistics has received increasing attention from both academic researchers and industrial practitioners. Serious and persistent environmental concerns and government regulations have created a motivation to pursue further research in this field. During the early nineties, the Council of Logistics Management published two studies on reverse logistics. First, (Stock, 1992) proposed the application of reverse logistics in business and society in general. One year later, (Kopicki et al, 1993) elaborated the opportunities on reusing and recycling. In the late nineties, several other studies on reverse logistics were completed. (Kostecki, 1998) discussed marketing aspects of reuse and issues involving the extension of product life cycle. (Stock, 1998) investigated how to start and carry out reverse logistics programs. (Rogers and Tibben-Lembke, 1999) demonstrated a collection of reverse logistics business practices using a comprehensive questionnaire among US industries.

Reverse logistics is the process of managing goods from the point of consumption to the point of origin. It aims to maximize asset recovery and supply chain efficiency, reduce costs, and improve the customer experience. Such core functions involving reverse logistics include waste management, liquidation, service parts logistics, and repair and refurbishment. It is the most fast, cost-effective, and sustainable means for disposing, recycling, or reselling the products that are reentering their supply chains. The facilities where these companies store or manufacture products offer even greater opportunities to go green. In fact, according to the World Green Business Council, the building sector has the greatest potential to reduce greenhouse gas emissions.

The focus isn’t just on the business, though. Reverse logistics, which helps reduce harmful emissions and energy usage, is intrinsically aligned with environmental sustainability. E-waste is now the fastest growing municipal waste stream in the United States. Every year, American consumers dispose of an estimated 400 million electronic units. Of the 2.4 million tons of e-waste generated in 2010, only 27 percent was recycled. The remaining 73 percent went to landfills and incinerators. Today, 83 percent of e-waste laws hold manufacturers accountable for collection, transportation, and recycling of products. Sustainable reverse logistics activities like repair, refurbishment, repackaging, recycling, and harvesting can help mitigate impacts, while increasing profitability and asset utilization.

The concept of logistics management has been functioning in literature of the subject and economic practice for numerous years, and it has developed research methods related to other disciplines of knowledge. The realities of current global economy force the enterprises to consider the sustainable development concept as well. This concept, by assuming sustainability in implementation of economic, social and environmental objectives, exerts impact on the management strategy of contemporary enterprises. This also results from the advancing globalization and the increasing scale of production along with negative phenomena that emerge in the environment and economy, i.e. environmental degradation and depletion of resources. Hence, the sustainable development concept may be sought first of all in strategies adopted by manufacturing enterprises, the operations of which are based on technological processes, distribution and sales, as well as post-sale services and the possibility to manage the final products or reuse of the materials. 

The strategies for sustainable development of manufacturing enterprises imply the strive for improvement in operations and acquisition of additional economic and ecological benefits.  It is also significant within the strategic operations carried out by the enterprises to develop and maintain the competitive advantage, and to limit the adverse environmental impact exerted by the products and services, reduce the consumption of materials and energy and decrease the amount of waste and emissions.  Therefore, the reverse logistics is embedded into the concept of sustainable development of enterprises.

The adverse effects of industrialization may change the overall character of natural system and the chain effects sometimes become suicidal for human society. Majority of the impacts of industrialization are related to pollution and environmental degradation. The release of toxic elements into the environment through the application of chemical fertilizers, pesticides and insecticides (output of chemical industries) changes the food chains and food webs and physical and chemical properties of soils. Similarly, the release of industrial wastes into stagnant waters of ponds, tanks, and lakes into rivers and seas contaminates water and causes several diseases and deaths of organism and thus disturbs ecological balance of aquatic ecosystem. Problems can be attributed to the prevailing emphasis at the time on economic growth and profits at the expense of public health.

1.2. Statement of the problem.

The heart of the study is to investigate how companies manage their waste to cut down pollution and maintain a sustainable environment. Before the industrial revolution in the 18^th Century, we had fewer industrial companies in relation to this, the activities of companies in terms of waste emission and management were less felt. From the 18^th century with the outbreak of industrial revolution, companies expanded in size, production and increased industrial activities. As a result, we now have huge industrial impact on the environment. As a means to sustainably manage some of this industrial waste, most European countries following the “Development Millennium Goals” which stood at helping their state members to reduce extreme poverty and environmental degradation, instituted the “Polluter’s Pay Policies” in order to cut down on environmental pollution.

This polluter’s pay policy states “the polluters should bear the consequences of carrying out pollution”.  Cameroon has domesticated this principle in its 1996 Environmental management law which is one of the most important principles of international environmental law. The fine imposed on polluters in Cameroon is paltry and therefore cannot really achieve one of the most desired objectives of punishment which is deterrence. The Polluters pay principle has been promoted at national and international levels as it relates closely to the rules of civil law and state liability for environmental damage. The practical implications of the principle are the allocation of economic obligations in relation to environmental damaging activities. Many civil society groups in Africa have joined their global counterparts demanding that governments should put costs on polluting industries, responsible for damaging the environment as well as the health of people. Several cities in the world like Accra, Abuja, Yaoundé, and many others were asking the government to penalize big polluters.

On Sept. 15, the “Makethempay” campaign was launched demanding a liability roadmap, to outline guidelines so that governments can hold polluting industries liable for the impact of their activities causing environmental degradation and climate change. The campaign further calls on the government to fix responsibilities on top executives of polluting industries. Following this huge financial charges on companies, most industries decided to embark on practicing reverse logistics. Some of reverse logistics activities are Repair, Recycling, Refurbishment, Maintenance, returns and reuse. These activities helps to reduce the emission of industrial waste on the environment, thereby bringing a reduction in pollution. 

1.3. Objective to the study

The main objective of the study is to examine the impact of Reverse Logistics on Environmental Sustainability and related ways to mitigate the challenges. The specific objectives are;

1. To examine the different type of reverse logistics observed by Brasseries Du Cameroun, Douala.
2. To identify the problem associated with reverse logistics on environmental sustainability.
3. To investigate how the implementation of reverse logistics activities by Brasseries du Cameroun affects environmental sustainability. (LES BRASSERIES DU CAMEROUN, Douala)

1.4. Research Questions

What are the impacts of reverse logistics on environmental sustainability?  Other questions which could be coined down from this question above are as follows;

1. What are the different types of reverse logistics?
2. What are the problems associated with reverse logistics in relation to environmental sustainability?
3. How do the implementation of reverse logistics activities does affects environmental sustainability?