Inbound Logistics | May 2026

TAKEAWAYS

HOW TO TURN REVERSE LOGISTICS INTO A PROFIT DRIVER By COLIN CHAPMAN , Senior Vice President, Services, Flex

Top 12 Warehouse Challenges Warehouse managers report the following biggest pain points, according to a recent Kardex Remstar survey:

1. Inventory control 2. Space constraints 3. Pick accuracy 4. Inventory visibility

Reverse logistics remains a reactive function designed to process returns quickly and contain cost for many manufacturers and retailers. With margin pressure rising and product complexity continuing to increase, supply chain leaders should take these practical steps to elevate reverse logistics from an operational burden to a structured advantage:

5. Supply chain instability from delays, shifting taris, and lead time surprises 6. Managing demand spikes from peak seasons and viral products 7. Rising labor costs 8. Inventory replenishment 9. Labor shortages 10. Ergonomics and safety 11. Returns management 12. Global trade uncertainty, such as international disruptions ABOUT THE SURVEY: Materials handling provider Kardex Remstar collected data from more than 100 customers across North America, representing industries such as manufacturing, ecommerce, pharmaceuticals, and logistics. OVERHEARD

1. START WITH DESIGN FOR RECOVERABILITY. Review high-return product categories and assess whether minor design adjustments could improve serviceability. Products designed for modularity, standardized components, and ease of disassembly are easier to repair, refurbish, or harvest for parts. Simplied fasteners, clearer labeling, and component standardization can reduce processing time and increase resale or reuse potential. 2. IMPLEMENT STRUCTURED TRIAGE. Establish clear triage protocols that quickly categorize returned goods based on condition, resale potential, and component value. The objective is speed with precision: routing each unit to the optimal disposition path as early as possible. Standardized inspection workows and predened decision trees reduce dwell time and preserve value. 3. SEGMENT RETURNS BY VALUE, NOT VOLUME. Focus on value density, instead of return volume metrics. For example, a low-volume, high-value component may justify refurbishment and reintegration into inventory. However, high-volume, low- margin goods may be better suited for bulk liquidation or recycling. Analyze historical return data to identify which categories consistently recover the highest percentage of original value, and prioritize operational resources around those streams. This ensures labor, space, and processing capacity align with nancial impact rather than volume. 4. ACTIVATE SECONDARY CHANNELS STRATEGICALLY. Beyond traditional liquidation, companies can leverage outlet channels, local pickup models, B2B resale platforms, and direct-to-consumer marketplaces. Evaluate which products are best suited for resale, which require refurbishment rst, and which are better monetized in bulk. Clear segmentation avoids margin erosion in primary channels while maximizing recovery in secondary ones. 5. CLOSE THE LOOP WITH FORWARD PLANNING. Reverse logistics generates actionable intelligence that extends well beyond the warehouse. For instance, return reasons can reveal product design gaps. Meanwhile, repair frequency may signal supplier variability, and regional return trends can expose forecasting or allocation imbalances. Organizations that feed reverse data back into design, sourcing, and inventory planning reduce future return rates and improve supply continuity. They establish cross-functional reviews where reverse metrics inform upstream decisions. These actions embed reverse logistics across the lifecycle, turning it from a cleanup function into a performance feedback engine and prot driver.

“We need to bust the myth that if jet fuel goes up, airfreight prices (need to) go up. Fuel costs have gone up dramatically, but rates are starting to go down in

specific markets.” NIALL VAN DE WOUW, Airfreight Ocer, Xeneta

Some welcome news: While global air cargo spot rates surged 30% year-on-year in April 2026 to reach their highest level since October 2022, the worst may be over for shippers as capacity returns on routes most aected by the Middle East conflict, and market fundamentals start to regain control of airfreight pricing, according to Xeneta analysts.

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