In this episode of Supply Chain Now, Scott Luton and special guest host Claudia Freed, President & CEO of EALGreen, welcome Chuck Johnston, Chief Strategy Officer at ReturnPro, for a deep dive into the “dark side” of supply chain: reverse logistics and returns management. They unpack why returns are a nearly trillion-dollar challenge in the U.S., how BORIS (buy online, return in store) strains store operations, and why many retailers still under-invest: leaders often can’t see the full cost across functions or make the ROI case for what’s treated as a cost center.

Chuck shares how the space has evolved from yellow notepads to data-driven decisioning, highlighting intelligent algorithms that route items at the customer’s first return click, fraud mitigation with imaging and behavior signals, and how third-party innovation is compressing software build times. Claudia adds a nonprofit and circularity lens: donation channels, extended tax credits, and AI pilots (computer vision + MCP agents) that identify item condition and slotting in real time. Together, they explore where to start, why cross-functional “ambassadors” matter, and how partnerships across retailers, manufacturers, nonprofits, and 3PLs can turn returns from margin erosion into measurable value and social impact.

Jump into the conversation:

(00:00) Intro

(04:03) Warm-up questions and fun facts

(05:54) Chuck Johnston's career journey

(13:53) Challenges and opportunities in returns management

(21:47) Technological innovations in returns management

(29:50) AI solutions in inventory management

(30:26) Tax benefits and opportunities for companies

(31:06) The golden age of supply chain tech

(31:44) AI's impact on fraud management

(34:44) The debate on more returns vs. fewer returns

(37:08) The EU Circular Economy Act

(39:18) Returns fraud and data analytics

(47:00) The importance of education and ambassadors

(49:45) Connecting with industry leaders

(52:01) Resources and upcoming events

Resources

• Connect with Chuck Johnston: https://www.linkedin.com/in/chuck-johnston-b07b3b4/ 
• Connect with Claudia Freed: https://www.linkedin.com/in/claudiafreed/ 
• Connect with Scott Luton: https://www.linkedin.com/in/scottwindonluton/
• Learn more about ReturnPro: https://www.returnpro.com
• Download a copy of the Returns Report: 2025 Holiday Edition by ReturnPro: https://www.returnpro.com/resources/blog/returns-report-2025-holiday-edition 
• Learn more about EALGreen: https://www.ealgreen.org 
• Register for The Optimized Digital Transformer: Key Concepts for Enhancing Modern Leadership and other upcoming webinars: https://supplychainnow.com/upcoming-live-programming/ 
• Learn more about Amazon Business Reshape 2025: https://business.amazon.com/en/events/reshape 
• Learn more about Supply Chain Now: https://supplychainnow.com 
• Watch and listen to more Supply Chain Now episodes here: https://supplychainnow.com/program/supply-chain-now  
• Subscribe to Supply Chain Now on your favorite platform: https://supplychainnow.com/join  
• Work with us! Download Supply Chain Now’s NEW Media Kit: https://bit.ly/3XH6OVk
• WEBINAR- The Optimized Digital Transformer: Key Concepts for Enhancing Modern Leadership: https://bit.ly/4gGWCGg
• WEBINAR- Reengineering supply chain planning: How to get more bang for your buck in 2026- https://bit.ly/3VahMCQ
• WEBINAR- Optimizing End-to-End Logistics: Efficiency, Collaboration, and Innovation- https://bit.ly/4ml2TZh
• WEBINAR- Empowering Decision-Making in 2026 with Supply Chain Orchestration: https://bit.ly/3W7swlL

This episode was hosted by Scott Luton and Claudia Freed and produced by Trisha Cordes, Joshua Miranda, and Amanda Luton. For additional information, please visit our dedicated show page at: https://supplychainnow.com/ask-me-anything-reverse-logistics-returns-1495