Keith Jesse
Bungii | Director of Strategic Solutions
For years, reverse logistics has been treated as the unglamorous corner of the supply chain. It’s seen as a necessary evil, a cost to absorb, and a box to check. Most companies still view it as a cost center rather than a source of value.
That’s changing fast.
The teams that win over the next few years will be the ones who stop treating returns as an afterthought and start managing them like a core function. When reverse logistics runs well, it becomes a real advantage that improves margins, sustainability, and customer trust.
Reverse logistics shouldn’t be treated as a cost center
In my experience, most organizations still label returns as a “cost center.” It’s a line item to minimize, not a function to optimize. But when you look closer, returns are a source of data… and data drives value.
Knowing what’s coming back, why it’s coming back, and what shape it’s in helps operators plan their next move. If you can identify what’s coming back before it arrives, you can route it efficiently: scrap, resale, donate, refurbish, or restock. That clarity saves time, reduces costs, and improves both margin and customer experience.
The difference between teams that lose money on returns and teams that turn them into value comes down to visibility. The more context you have, the more control you gain.
Why reverse logistics fails under traditional supply chain models
Most parcel networks were never designed for oversized freight. A sofa, a job-site pallet, or a commercial oven moves very differently than a box of small goods. Yet those are the kinds of products being shipped and returned every day. As FreightWaves reports, big and bulky products are reshaping supply chains and exposing gaps in traditional delivery models.
When large-format freight moves in reverse, every weak point in the operation becomes visible. Carrier inconsistency, poor documentation, and fragmented data systems all slow down recovery and increase cost.
Even simple steps can create friction. If a customer has to print a return label at home, that’s a poor experience before the process even begins. Or consider a double shipment that the system fails to catch. When that extra product can’t be reabsorbed into inventory, it turns into a total loss.
Bulky-item returns require coordination, communication, and planning. They don’t follow the same playbook as parcel returns. You need defined processes and the right technology to handle them efficiently. Without that structure, backlogs occur, refunds lag, and customers lose confidence.
Standardization improves the reverse logistics process
The most successful operators I’ve worked with all share one trait: structure. They’ve standardized their reverse logistics processes across business units and locations. Every return follows the same playbook.
That consistency creates speed. When you use the same systems, carriers, and workflows, you can analyze return patterns to see which products come back most often, which defects keep showing up, and where inefficiencies exist. That data drives continuous improvement across the entire operation.
Standardization also improves the customer experience. When a return is seamless, the frustration that started the process begins to fade. Quick, predictable returns earn back trust — and often the next sale.
Supply chain visibility turns reverse logistics into an advantage
A simple test: ask a company what their returns cost per order or per SKU. Most can’t answer. That’s a sign that they don’t truly understand or control the process.
Visibility is what separates reactive teams from strategic ones. When you can see every return moving through your network, including what’s coming back, how it’s being handled, and what it costs, you can make smarter decisions across the business. That insight strengthens procurement, packaging, inventory management, and carrier negotiations.
Reverse logistics is one of the last blind spots in many supply chains. Closing that gap turns chaos into control.
You’re not unique (that’s a good thing!)
Many operators believe their reverse logistics challenges are unique. For the most part, they’re not. Every company dealing with oversized or high-value products is facing the same inefficiencies.
That’s actually freeing. It means the infrastructure already exists. You don’t need to reinvent the wheel. You just need to plug into proven systems, networks, and technology built for the job.
Once you realize that, the conversation shifts from “how do we survive this?” to “how do we make this better than our competitors?”
Treat reverse logistics like outbound operations
The solution isn’t complicated. Treat reverse logistics with the same discipline as outbound operations.
Track it. Measure it. Review it.
Apply the same shipment-level data standards you already use for delivery. Monitor transit times, condition reports, and carrier performance. When reverse logistics is run with the same rigor, it becomes a continuous improvement engine.
You’ll find inefficiencies you didn’t know existed. You’ll reduce costs, protect margins, and improve customer experience by applying the same operational principles that already work, rather than adding new systems.
Reverse logistics best practices for modern supply chains
The companies that handle returns well don’t rely on luck. They build process discipline and stick to it. Three things usually stand out.
1. Structure
Good operators have a clear, repeatable process. Every return follows the same path from pickup to reconciliation, whether it starts at a retail store or a job site. Responsibilities are defined, service levels are documented, and communication between logistics, fulfillment, and customer service is constant.
That level of structure keeps teams from wasting time on guesswork. When people know exactly how returns are handled, the process becomes predictable. Predictability keeps costs low and throughput high.
2. Visibility
Strong reverse logistics programs are data-driven. They track what’s coming back, why it’s coming back, and how it moves through the network. The best teams capture data at every handoff, including reason codes, condition, transit time, processing time, and final disposition.
With that visibility, they can separate one-off mistakes from systemic issues. A sudden spike in returns in one region might point to a packaging problem. Repeated defects in a single SKU might trace back to a supplier. The point is to see the pattern early enough to fix it before it drains margin.
3. Discipline
The best supply chain teams review returns performance as consistently as outbound performance. They measure processing time, recovery rate, customer satisfaction, and true cost per return. They know how long it takes to process an item and how much value they can recover when it’s refurbished or resold. That data drives accountability and continuous improvement.
When structure, visibility, and discipline work together, operations move from chaos to control.
Leaders know their cost of returns and can explain why it changes month to month. They know which products or partners create the most rework. They can predict reverse volume and plan labor around it instead of reacting.
The most advanced teams use those insights upstream. They adjust packaging to prevent damage, improve how SKUs are labeled for resale, and tighten supplier quality controls. They also feed customer feedback from returns back into design and fulfillment.
That’s what a mature reverse logistics operation looks like. It’s steady, measurable, and built for improvement. And when it runs that way, it protects margin and strengthens the entire supply chain.
Future trends shaping reverse logistics strategy
Customer expectations around returns will keep climbing. Buyers now expect the return experience to be as fast and convenient as delivery. Once a few brands make that the standard, every other company will be judged against it.
Industry analysts are already seeing the shift. Gartner, via The Supply Chainer, projects that by 2030, retailers will spend nearly twice as much on returns and reverse logistics as they do on outbound delivery. That forecast underscores how quickly the balance of operational cost is changing and why logistics leaders are prioritizing reverse logistics strategies heading into 2025.
At the same time, reverse logistics networks are consolidating. Companies that can combine return volume across multiple shippers will gain meaningful advantages in cost and density. Others will struggle to compete with that efficiency.
The biggest risk is inaction. Teams that fail to modernize their systems or capture return data today will face higher costs later when they have to rebuild. Some may lose customers without realizing the cause was a poor return experience.
Reverse logistics strengthens customer experience and brand loyalty
At its core, reverse logistics protects your brand. A customer’s experience doesn’t stop at delivery; it continues until the return is complete and they feel taken care of.
When the return process is fast, transparent, and reliable, customers notice. They feel confident buying from you again because they know you’ll handle problems with the same care you handle deliveries. That confidence turns into loyalty, and loyalty compounds into reputation.
Efficient reverse logistics does more than move freight. It preserves trust, protects margin, and strengthens relationships that take years to build but only one bad experience to lose.
Returns will always happen. What separates good operators from great ones is how well they manage them. The teams that invest in clarity, speed, and consistency don’t just reduce costs — they build a competitive advantage that lasts.
