Performance Indicators of Textile Reverse Logistics

Abstract

The reverse supply chain has gained increased attention across industries due to the high product return rates. Many strategic and economic benefits can be reaped by efficiently managing the reverse supply chain, such as; cost reduction and enhanced environmental performance. Despite the acknowledgement of the available advantages that can be reaped, there is an overall lack of academic research concerning performance metrics, in particular KPIs (Key Performance Indicators), that can help in managing reverse supply chains. Moreover, industry-specific KPIs have not been explored thoroughly. The apparel industry is currently plagued by high return rates, which suggests that it is even more important for clothing retailers to look over their reverse supply chains. The conceptual framework presented in this report seeks to diminish the gap in literature and provide clothing retailers with KPIs with a focus on environmental sustainability that can help in the decision-making process. The framework is expected to promote sustainability as a more central decision-making criterion within reverse supply chains, especially within the apparel industry.