Reverse logistics

Reverse logistics encompasses all operations related to the upstream movement of products and materials. It is "the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. Remanufacturing and refurbishing activities also may be included in the definition of reverse logistics". Environmental concerns and the development of green supply chain management practices have increased the relevance of reverse logistics.

Academic and professional interest in reverse logistics has grown considerably in recent decades. The first use of the term "reverse logistics" in a publication was by James R. Stock in a white paper titled Reverse Logistics, published by the Council of Logistics Management in 1992. The concept was further refined in subsequent publications by Stock (1998) in another Council of Logistics Management book, titled Development and Implementation of Reverse Logistics Programs, and by Rogers and Tibben-Lembke (1999) in a book published by the Reverse Logistics Association titled Going Backwards: Reverse Logistics Trends and Practices.

The reverse logistics process includes the management and the sale of surplus items, as well as returned equipment and machines, particulary from the hardware leasing business. Traditional logistics typically involves the forward movement of goods toward the customer, whereas reverse logistics refers to the backward flow of goods in the supply chain. In such cases, resources move at least one step back in the supply chain — for example, from the customer to the distributor or manufacturer.

As of 2023, the global reverse logistics market is estimated to be worth approximately $993.28 billion. This value is projected to increase at a compound annual growth rate (CAGR) of 10.34% from 2023 to 2032.