Dr. Sahar S Elbarky
BALANCED SCORECARD FRAMEWORK FOR MEASURING REVERSE LOGISTICS PERFORMANCE
Purpose - Reverse logistics management (RL) has gained significant concern from academia and practitioners due to its environmental, economical and social benefits. RL is the movement of used products from the consumer to the producer in the distribution channel. Its processes include product acquisition, transportation and warehousing, inspection and testing and recovery processes. Managing and improving those reverse logistics processes need comprehensive measures to assess the performance. The measures might be qualitative and quantitative in order to cover all RL process perspectives.
The first objective of this study is to identify the key processes and their objectives of reverse logistics due the reviewing the literature. The second objective is to identify and determine the performance measures of reverse logistics on operation level. The third objective is to develop a balanced scorecard framework (BSC) for each process of RL that categorize measures within financial, innovation, process, and stakeholder, environmental and social perspectives.
Research Approach - The study proposes a balanced scorecard framework for managing performance of RL on operational level. The BSC framework for each RL process is proposed based on extensive review of the literature on RL performance measures. Also, survey methodology is conducted among companies to identify the performance measures that used by practitioners in real –life context.
Findings and Originality - Few previous studies have been conducted to identify the performance measures for RL based on drivers and strategic level. The main contribution of this study is to identify the main objective and performance measures for each RL process. Then, propose BSC framework that categorizes measures within within financial, innovation, process, and stakeholder, environmental and social perspectives. Therefore, comprehensive PM balanced scorecard for RL operations help companies to identify the strengths and weakness in RL which leads to faster and wider process monitoring improving internal ad external functions of RL and meeting the needs of all stakeholder.
Results of surveys and literature review helped the researcher to determine performance measures for each reverse logistics processes used by RL mangers and proposed by academia. The study findings demonstrate a BSC framework for each RL process that can be used by RL managers/practitioners in different sector to evaluate the performance of RL processes.
Research Impact - The study opens new opportunities for further investigation in performance measurement of reverse logistics. It provides RL field with comprehensive list of performance measures on operational level. Also, it provides other researchers with opportunities to conduct more investigations to identify the significant performance measures for RL.
Practical Impact - The proposed balanced scorecard framework (BSC) for managing performance of RL on operational level is a useful guidance for RL managers in different sectors to measure RL performance in balanced way.
Keywords - Reverse logistics, balanced scorecard, Performance measurement, Performance Measures.