What are the Key Performance Indicators (KPIs) in Reverse Logistics? All KPIs in Reverse and Service Logistics fall into two categories.
1) Those that reflect customer service levels
2) Those that reflect cost
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KPIs that reflect customer service levels:
Turn Around Time (TAT)
The time from customer service request to problem resolution.
Call-centre Resolution Rate (CRR)
The Percentage of trouble-tickets dealt with by the call centre that do not result in RMA issue.
Boomerang Return Return Rate (BRR)
The percentage of product already Returned that is returned a second time. This KPI is important where returned products are repaired as it measures the quality of the repair process.
KPIs that reflect cost:
Net Asset Recovery (NAR)
The percentage of the value of returned products that is recovered through the reverse logistics process.
Return Rate (RR)
The percentage of product sold that is returned.
Scrap Rate (SR)
The percentage of product returned that is scrapped or recycled as distinct from resold.
I will update this particular blog with further KPIs and their definitions in the future. Please leave a comment if you feel a particular KPI should be added to the list.
