Remanufacturing supply chain: an analysis of performance indicator areas

Abstract

PurposeRe-use of products in the supply chain has become a significant consideration in the last decade. It has resulted in the development of several product recovery alternatives. Remanufacturing in the supply chain is one such product recovery option that yields social, economic and environmental benefits. This study aims is to identify and evaluate the key performance indicators (KPIs) of the remanufacturing supply chain (RSC).Design/methodology/approachThe KPIs of RSC are classified along with the five primary management processes (plan, source, make, deliver and return) of the supply chain operations reference (SCOR) model. A grey decision-making trial and evaluation laboratory (DEMATEL) technique is applied to investigate the complex interrelationships amongst the identified KPIs and categorize them into cause and effect group. The applicability of the proposed framework is demonstrated through a case organization involved in remanufacturing business.FindingsThe KPIs are identified based on literature analysis and subsequent discussion with decision panel experts. The present research work results reveal that “consumer awareness program”, “technological compatibility” and skilled workforce' are the most influential indicators.Originality/valueThis research work provides a framework to evaluate the causal relationship between the RSC KPIs. The framework proposed in this study is empirically applied to a case organization. Based on the study findings some important recommendations are presented to the decision-makers/policy planners to help them develop an action plan. This would help the case organization reduce resource consumption, increase market share and enable sustainable development.