Logistics & Fulfilment

Reverse Logistics

Reverse logistics is the process of moving goods back from the customer to the supplier — for returns, repairs, recycling or disposal.

Where normal logistics flows goods forward to the customer, reverse logistics manages the return journey: processing returned or faulty items, handling warranty repairs, recovering reusable packaging, and disposing of or recycling end-of-life products. Done well, it recovers value and supports sustainability goals.

For procurement, clear return and reverse-logistics terms matter when negotiating with suppliers — who pays for return shipping, how quickly credits are issued, and how faulty goods are replaced. Efficient reverse logistics reduces the cost and friction of returns and keeps working capital from being trapped in unusable stock.

Frequently asked questions

What is reverse logistics?
Reverse logistics is the process of moving goods backwards through the supply chain — handling returns, repairs, recycling and disposal — rather than forward to the customer.
Why does reverse logistics matter in procurement?
It affects how returns, faulty goods and warranties are handled. Clear reverse-logistics terms with suppliers reduce the cost of returns and speed up credits and replacements.

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