Performance Measurement System for Resilient Supply Chain using Reverse Logistics in Railways: A Case from Pakistan

Abstract

Pakistan Railways has an elaborated system of reverse logistics. Being a transport body itself, it has its unique capabilities of supplying the required material to the destinations within the organization and disposing off the undesired/ waste generated by the system. To make the system resilient in nature, reverse logistics is distinctive and quite sophisticated in nature. The problem is despite having such an elaborated system of reverse logistics resilience while dealing with diversified items, the key performance indicators also known as key success indicators yet need to be designed properly. The result of this lack of information is in undermining the whole process of reverse logistics. As such there is a simple system of performance measurement for the resilient supply chain’s reverse logistics i.e., clearance of surplus items, value addition through workshops, and sale of scrap in terms of quantity and price only. This comes under recycling/disposal whereas the remaining areas are ignored while calculating the role of reverse logistics performance. The purpose of this study is to fill in the gaps and design a framework for performance measurement with respect to reverse logistics of Pakistan Railways and to make their supply chain more resilient specially in Post Covid era. The designed performance measurement system is based on KPIs which are different for Strategic, Tactical and Operational in the internal and external perspective while keeping in view the time horizon in short as well as long term.