Performance measurement in-fourth party reverse logistics

Abstract

PurposeThis paper aims to develop a performance measurement (PM) system for fourth-party reverse logistics (RL). In this regard, it proposes simultaneous utilization of a procedural approach and hybrid use of existing performance frameworks.Design/methodology/approachThe paper first describes fundamentals of RL and PM approaches in literature to build a basis for further discussion. It then carries out a systematic review of the literature on PM in RL to highlight current trends and approaches in this regard. At last, it develops a PM system for fourth-party RL by exploring relevant performance frameworks and by defining a procedure in detail.FindingsThe paper identifies the ongoing interest in development PM in RL, and the gap and the need for the development of comprehensive PM system for fourth-party RL. It also identifies the best approach is to use existing performance frameworks in literature and a procedural approach together as they complement each other rather than contradicting.Research limitations/implicationsThe paper fills a gap in literature by developing a comprehensive PM framework for the fourth-party RL. The presented procedure is well suited to be used as part of strategic management process in any fourth-party RL organization. It forces users a top-down approach, from strategies to measures, so that a strong linkage is established in the process. When used together with the proposed PM framework, it guarantees a comprehensive and balanced PM system.Practical implicationsThe paper identifies the need for the development of a PM framework as well as a measurement system for the fourth-party RL in the literature. In this regard, it develops a PM framework first, and then a procedure on how to implement it. As a result, users can effectively use them as a part of strategic management process of their organizations.Social implicationsThe fourth-party RL is growing and very promising mode of RL for well-being of society, by offering a strong path to sustainable development in the midst of diminishing resources in the world. The existence of a well measurement system is crucial for the healthy operations and development of fourth-party RL organizations. The paper is offering a strong PM model in this regard.Originality/valueThe paper fulfills an identified need to study how to develop a PM system for fourth-party RL.