Reverse Logistics

Reverse Logistics is the management of the flow of goods backward through the supply chain — from the customer or end point back toward the seller, manufacturer or point of recovery. It covers returns, exchanges, repairs and refurbishment, recalls, recycling, reuse and disposal of products and packaging, and the associated processing, crediting and restocking.

Once an afterthought, reverse logistics has become critical — especially in e-commerce, where return rates are high and easy returns are a customer expectation. It is operationally complex and costly: returned goods arrive unpredictably, in varied condition, and must be inspected, sorted and routed to resale, repair, recycling or disposal, all while issuing refunds and updating inventory. Done well, it recovers value, supports sustainability and circular-economy goals, and protects customer loyalty; done poorly, it destroys margin. Reverse logistics is the mirror image of outbound fulfillment and an increasingly important discipline in its own right.