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.
Related terms
Outbound Logistics
Outbound logistics is the storage, handling and delivery of finished goods from an organisation to its customers.
Read definitionWarranty
A warranty is a supplier's promise about the quality, condition or performance of goods or services, and what will be done if that promise is not met.
Read definitionSustainable Procurement
Sustainable procurement is buying in a way that considers environmental, social and governance (ESG) impacts alongside cost and quality.
Read definitionExplore related across the knowledge graph
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