Reverse logistics
Ever wonder what happens to products after they’re returned, repaired, or recycled?
That’s reverse logistics in action.
It’s the behind-the-scenes magic that starts once a product leaves the customer’s hands.
Think of it as logistics in reverse.
While forward logistics is all about getting products to customers, reverse logistics is about handling returns, repairs, or making sure items get a second life—whether they’re resold, refurbished, or recycled.
What is reverse logistics?
Reverse logistics is the process of moving goods from their final destination (the customer) back to the seller or manufacturer.
It covers activities like returns, repairs, recycling, and even dealing with surplus inventory.
For example, when a customer returns a pair of shoes that didn’t fit, reverse logistics steps in. The shoes are sent back to the warehouse, inspected, and then a decision is made—should they be resold, repaired, or recycled?
With the rise of eCommerce, reverse logistics has become even more important. Customers are returning products at much higher rates—up to 30% of online purchases get returned, compared to only about 10% for in-store buys.
Types of reverse logistics
There’s more to reverse logistics than just returns. Here are the main types:
- Returns: The most common type. This happens when customers send back products they don’t want or that are faulty.
- Repairs: Sometimes, items just need a fix. Reverse logistics manages the process of repairing and returning products to customers.
- Remanufacturing: In this case, products are disassembled and rebuilt to meet their original specifications.
- Recycling: Products or parts that can’t be reused or resold are broken down and recycled.
- Refurbishment: Similar to remanufacturing, but the product is cleaned up and given a makeover before being resold as “like new.”
Each type of reverse logistics plays a key role in maximizing value and reducing waste.
