Purpose

Performance is widely used to describe the success of commercial supply chain profitability (SCP), capturing novel markets and addressing diverse and evolving customer needs. New customer offers and services have resulted in a higher rate of product returns (PR) from consumers. However, return logistics management (RLM) has not been adequately addressed. As a result, this study aims to explore the various performance areas within the supply chain, specifically those related to PR in the fast-moving consumer goods (FMCG) sector, and how they impact supply chain RLM operations.

Design/methodology/approach

This study focuses on FMCGs. The study adopts an inductive approach to qualitative data from companies. We collect and analyse interviews from Swedish companies and secondary data to describe supply chain performance and how it is affected by the PRs in the FMCG current sector through the impact on RLM in an observed case company.

Findings

We show some of the main problems and impacts on the performance of the supply chain through problems created for RLM when product returns are not managed adequately. The study identified that several PR drivers, namely quality, contractual, customer service, and legislation, are imposing challenges that impact the RLM and the SCP of the current FMCG sector.

Research limitations/implications

The study shows how problems can arise in RLM and their likely effects; however, exact performance effects are not demonstrated.

Original/value

The paper contributes to understanding supply chain performance in an RLM context.