Reverse Logistics also known as return logistics or return flow logistics—refers to the process of managing the movement of products or materials from the end customer back to the point of origin. Unlike traditional logistics, which deals with the flow of goods from origin to consumer, reverse logistics focuses on the reverse movement of goods.
Reverse logistics covers a wide range of activities such as collection, sorting, transportation, repair, refurbishment, recycling, and final disposal of returned products. These items may include customer returns, excess inventory, obsolete or damaged goods, empty packaging, and more.
There are many reasons why products are returned, including customer dissatisfaction, manufacturing defects, shipping errors, changes in consumer preferences, product expiration, or recycling programs. The main objective of reverse logistics is to manage these product flows efficiently in order to minimize costs, reduce environmental impact, and maximize the recoverable value of returned items.
Effective reverse logistics involves implementing systems and processes for handling returns, including reverse transportation logistics, product inspection and evaluation, refurbishment or repair when needed, inventory management, and the proper final disposal of goods that cannot be reintegrated into the supply chain.