A Scorecard Tool for the Measurement of Performance for Both the Forward and Reverse Supply Chain

A significant number of performance measurement tools have been developed for the forward supply chain. However the same cannot be said about the reverse supply chain as it has not been considered a core competence by many organisations. A framework for evaluating both the forward and the reverse supply chain is proposed to provide an overall picture of performance in a supply network. Measures included cover supply chain behaviour, responsiveness, reliability as well as costs and return rates. A case study involving a major European mobile phone network operator is used to test the methodology using a high-value handset model. For the product selected, the tool revealed serious inconsistencies associated to order lead times, inaccurate forecasted quantities, excess inventory, cost associated to brand new stock and high return rates (both faulty and non-faulty returns). The proposed framework demonstrates it can be used to capture the performance of the integrated supply chain (both forward and reverse) associated to a given product. The proposed framework has the potential to be used to achieve better customer service and reduction in costs involving shipping, warehousing, labour and call centres. Nonetheless, it provides a broad picture in terms of supply chain performance.