Every CPG brand wants their products flying off the shelf…but what about what comes back?
Let’s talk reverse logistics: the secret to saving money, strengthening retailer trust, and keeping your brand sustainable.
What is Reverse Logistics?
Reverse logistics is just like it sounds: moving products backwards through the supply chain. It starts with the end consumer of the product electing to return, recall, or refuse the order for whatever reason. It could be as simple as a retail distribution center rejecting your order due to an error on the bill of lading (BOL).
This then starts the process of reverse logistics: return processed, movement to disposition, recycle/refurb/resale, and then delivery to the final consumer. The goal of this process is to regain the original value from the product or dispose of it entirely.
Types of reverse logistics shipments include returns, remanufacturing/refurbishment, near-expired/end-of-life (EOL), repairs and maintenance, delivery failure, rentals and leasing, and unsold goods.
The Rising Cost of Reverse Logistics
According to Forbes, returns are bleeding retailers dry. In 2024, estimated returns amounted to over $685 billion in lost revenue. And that’s just in the United States alone. Nuts.
Brandon Batchelor, the Director of Sales & Strategic Partnerships at ReadyCloud, says, “Returns can do more than just drain inventory and shipping costs. They can erode customer trust, disrupt operational efficiency and weaken brand perception. A poor return experience doesn’t just result in one lost sale; it can cost you the next 10. The real expense isn’t the refund; it’s losing the customer you’ll never see again.”
Retail logistics experts at Zipline Logistics echo this sentiment. The most successful CPG brands use returns to inform better decisions, boost customer retention, and open new doors for growth.
How to Strategically Leverage Reverse Logistics
Unfortunately, many brands think of navigating returns as an afterthought. Then they miss out on a perfect chance to save money, increase brand recognition, and blow their customers away.
“CPG brands can capitalize on any return by viewing it as an opportunity to give customers another great experience,” said TRUCK YEAH! podcast host, Jesse Juett, in Episode 78.
“Yes! Finding a way to make returns a non-stressful situation for the customer can make a big difference,” agreed co-host Teddy lee Knox. “This is the best time to come up with unique solutions, like leveraging consolidation or partnering with other companies for resale. This is great publicity for the brand and may even allow the product to be repurposed.”
Here are a few pointers to make the most of the reverse logistics process and get creative with solutions. You’re welcome.
Determine the Goal & KPIs
Before jumping into the reverse shipment, create a game plan by determining the purpose, desired goal, and KPIs of the operation.
- Confirm return location, direct reference numbers, and carrier specifications
- Ask yourself: What’s most important in this specific situation? Is it most important to get the shipment off the dock in order to preserve a crucial retail relationship? Or is it more important to complete the return as cost effectively as possible?
Inspecting & Sorting to Determine Value
If you experience a rejection at a big box retailer, the next step is to determine what is salvageable and valuable. You can do this by taking the product off site and sorting through what can be returned, recycled, donated, or resold. From there, you’ll need to update the purchase order (PO) and contact the correct correspondents to coordinate the next steps of the return.
Understanding the “Why”
Many CPG brands make the costly mistake of not getting to the root of the problem and understanding why reverse logistics is needed. They usually opt for the quickest, most cost-effective solutions — many of which only lead to more problems down the line. Failing to get to the root of issues and pinpoint slight differences in terminology can end up being very costly mistakes for brands.
For example, an order may at first be refused for being the wrong item. After further inspection, it turns out the correct product was delivered, but the PO was labeled incorrectly. If that mistake hadn’t been caught, the order would be processed as a return without further investigation. This could potentially cost the brand additional time, money, and headaches.
Get Creative with Reverse Logistics Strategies
Say a brand accidentally sends off a shipment of lemon-lime flavored soda mixed into an order of strawberry-kiwi. The receiver is expecting a full order of strawberry-kiwi soda, but one third of the shipment is lemon-lime flavored. They are not happy and refuse the lemon-lime products in the shipment.
In a situation like this, you (as the shipper) can get creative. You can take all of the product off the pallet, put the lemon-lime soda back on, wrap it up, and boom. Just because that particular receiver refuses the lemon-lime doesn’t mean another receiver will.
Make a few phone calls to find a nearby receiver who will accept it, and you’ll be able to efficiently divert the lemon-lime to a new home. This creative solution will likely come at a much lower price point. Compare it to returning the product to the original shipment location and waiting for another receiver to order lemon-lime soda. Night and day!
Additional Strategies to Leverage
- Audit Your Return Policies: Work with retailers and 3PLs to clarify how and when returns happen.
- Collaborate with Carriers Early: Plan for reverse flows before they happen. Ask carriers how they can bundle pickups with deliveries.
- Use Data to Optimize: Track reasons for returns and damage. Share insights with your trucking partners to improve handling and packaging.
- Centralize Return Centers: Designate one or two hubs for incoming returned goods to streamline transport and inspection.
- Automate Tracking: Use your ERP/WMS to track returns alongside outbound shipments for full visibility.
- Build in Sustainability: Choose carriers who can recycle packaging or dispose of goods responsibly.
- Leverage Backhauls: Use the trucks that just delivered your product to bring back returns, damaged goods, or recyclables.
Level Up Reverse Logistics with a 3PL Partner
Reverse logistics isn’t just a cost center, it’s a growth lever for CPG brands. Partner with carriers who understand reverse flows. Treat returns like an opportunity to learn, recover, and build trust.
Talk to your logistics partner this week about your reverse logistics strategy. The trucks leaving your warehouse full could come back full, too.
About Zipline Logistics
Need help navigating reverse logistics?
We’re in the business of making life easy for CPG brands just like you. Our expert operators, world-class service, and tailored strategies have allowed us to help brands like yours grow effectively.
- 95% on-time in-full average for appointments
- World-class customer satisfaction score ranking 5 times the industry average
- National network of 50,000+ hand-picked carriers vetted to haul retail goods specifically
- 97% of our orders are destined to land on a retail shelf
Give us a call at 888-GOZIPLINE or click below to learn more.
