AI-Driven Support to Reverse Logistics

This chapter examines the crucial role of reverse logistics in retail, particularly at the intersection with sustainability, e-commerce, and AI. It explores how reverse logistics has evolved from a simple returns process to an integral part of the circular economy, where products are reused, repaired, recycled, and refurbished to minimize waste and environmental impact. The discussion highlights the importance of reverse logistics in the fashion industry, where e-commerce and fast fashion trends have led to increased return rates and ecological problems. The chapter introduces the ‘5R’ concept—return, resale, repair, recycling, and refurbishment—as fundamental to the effective implementation of reverse logistics. Integrating Industry 5.0 technologies, particularly AI and FMs, is highlighted as transformative for reverse logistics (Atiku et al., Eco-Innovation and Sustainable Development in Industry 5.0. IGI Global, Hershey, PA. https://doi.org/10.4018/979-8-3693-2219-2 (2024)). These technologies enable improved return forecasting, automated processing, and intelligent waste management. The chapter details how organizations can implement reverse logistics through a three-part system of e-commerce, information management, and logistics management components. The discussion concludes by emphasizing the dual perspective of customers and organizations in reverse logistics. Trust, clear return policies, and sustainability are key concerns from the customer’s perspective. On the other hand, organizations focus on system integration and excellent customer service to create effective reverse logistics processes that benefit business operations and environmental sustainability.