Reverse logistics is the flow of goods that moves backwards up the supply chain, from the customer towards the company: returns, defective products, packaging to recover, items to refurbish or dispose of. It’s the opposite of “forward” logistics that takes the product to the customer.
Why it matters
With the growth of e-commerce, returns have become a significant and often underestimated cost: handling, reverse transport, quality control and restocking. Inefficient reverse logistics quietly erodes margins — see the hidden cost of returns.
How it’s optimized
The levers are integrating pickups into existing delivery routes (combining outbound and return), optimizing routes for returns too, and giving visibility over return flows. It’s part of broader last-mile logistics efficiency.
FAQ
What falls under reverse logistics?
Customer returns, defective or in-warranty products, reusable packaging, items to refurbish, recycle or dispose of: anything travelling from the customer back to the company.
Why do returns cost so much?
Because they’re often handled as a separate flow, with unoptimised pickups and manual handling. Integrating them into existing routes and optimizing their paths reduces the impact.