Reverse logistics manages the movement and disposition of products, materials or packaging from the customer or use location back through the supply chain. It covers more than transport because returned items require inspection and a recovery decision.
Which activities are included?
- Return authorization and collection
- Transport and receiving
- Inspection and sorting
- Repair, refurbishment or resale
- Supplier return or recycling
- Disposal and financial adjustment
Reverse vs. forward logistics
Forward logistics moves goods toward the customer using planned quantities and destinations. Reverse flows are less predictable and often contain mixed-condition items requiring individual decisions.
What determines the disposition?
Product condition, safety, warranty, economics, demand, regulatory requirements and supplier agreements affect whether an item is restocked, repaired, liquidated, recycled or destroyed.
How should inventory be controlled?
Quarantine returns until identified and inspected. Record serial number or lot where relevant, condition, custody, disposition and any recovered value.
What should be measured?
Track return cycle time, cost, recovery rate, loss, repeat defects and environmental outcomes. Compare the cost of recovery with the value actually regained.
