Supply chain and logistics operators are increasingly exploring artificial intelligence (AI) tools to tackle rising costs associated with product returns and fraud, industry sources report. As return volumes grow and fraud schemes become more common and sophisticated, logistics providers are trialling advanced technologies to identify and reduce financial losses across the reverse logistics process.
Industry insiders note that returns volumes have expanded sharply, driven by booming e-commerce activity and more flexible return policies. At the same time, fraudulent returns — including swapped products, fake goods and manipulative patterns — are imposing additional costs on carriers and retailers alike, making traditional manual review processes less effective and more resource-intensive.
In response, logistics integrators are testing AI-based detection systems that analyse return patterns and item characteristics in real time, flagging potentially fraudulent cases for closer review. These solutions use machine learning and image analysis to compare returned items against product data, helping differentiate legitimate returns from deceptive submissions earlier in the reverse logistics chain.
Experts say AI’s role is dual-purpose — while it supports automation and cost control, the technology also evolves alongside fraud tactics, requiring continuous refinement and human oversight. Larger return volumes and sophisticated fraud schemes mean supply chain risk and compliance teams are prioritising AI as a strategic tool to safeguard margins and streamline operations.
Stakeholders emphasise that the integration of AI into return logistics aligns with broader industry trends where intelligent technologies are being deployed across warehousing, transportation and customer service to improve visibility, accuracy and cost efficiency.
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