The Surprisingly Complex Logistics of Product Returns

Reverse logistics is the movement of goods “upstream” through a supply chain, to return them from the end customer back to a retailer or manufacturer.

Reverse logistics also covers the recycling, repurposing, repairing and resale of products.

There are several types of reverse logistics, for different reasons:

Returns management: This is the most common reverse logistics process: when a customer returns an item to a seller because it is damaged, not as expected, doesn’t fit etc.

Remanufacturing or refurbishment: This involves the repairing and rebuilding of products. Retailers and manufacturers may also recover some parts from a defective product to be used elsewhere.

Unsold goods: When a retailer returns unsold goods to the manufacturer.

Delivery failure: In the instance of a failed delivery (for example, the customer was not in to receive the package), products may be shipped back to the retailer.

Rental equipment: This is when rented or leased products are returned to the manufacturer at the end of a defined term.

Repairs and maintenance: The customer will send the product back to the business to be repaired. 

End of life: These are products that can no longer serve any purpose, so will need to be recycled or disposed of.

The next video shows how reverse logistics works in real life and how complex. When the customer returns the product, a new intricate adventure starts until it reaches its final destination and potentially a new life!