Influence of Reverse Logistics on Supply Chain Performance in Freight Transport and Manufacturing Firms in Kumasi: The Role of Government Policy

Purpose: In recent times, reverse logistics has become a vital initiative for pursuing sustainable development by manufacturing firms due to some key factors. The research aim examined the relationship between reverse logistics practices (Product collection and industrial waste management) and supply chain performance, and the moderating effect of government policy between them for selected manufacturing firms in Kumasi. Design/Methodology/Approach: A cross-sectional survey design was adopted using Kumasi because most manufacturing firms are concentrated there, where proportionate sample could be obtained. The study involved sample size of 220 respondents. Quantitative data was collected through a self-administered questionnaire designed to obtain specific responses for the analysis. Findings: The findings from the regression analysis show that there was a direct relationship between product collection practices and supply chain performance. Consequently, the collection by third party proved to be the strongest predictor of the variations in SC performance by 40.5% level of explanation while industrial waste management practices (remanufacturing, reusing, recycling) were not statistically significant to explain the variations with p > 0.650, 0.338 and 0.211 which is greater than 5% level of significance. Practical Implications: The moderating effect of government policy was found to have a statistically significant influence on the relationship between product collection and environment performance, evidenced by P < 0.008 being less than 0.05 level of significance. However, the moderating effect of government policy did not have a statistically significant influence on the relationship between industrial waste management practices and supply chain performance with P > 0.476 being greater than 0.05 level of significance. Originality/Value: By exploring how reverse logistics can enhance supply chain performance, the research contributes to the broader sustainability goals of minimizing waste, optimizing resource utilization, and reducing the environmental footprint of freight transport.