The New 5R Model of Logistics: How Circularity is Reshaping Supply Chains

Why the classic 3Rs aren't enough anymore

In the early 2000s, talking about recycling was enough to be seen as sustainable. "Reduce, Reuse, Recycle" became a kind of gospel for eco-conscious logistics.

But recycling alone is a last resort. It often downcycles materials and consumes energy. Meanwhile, the rising importance of product lifetime extension, second-use markets, and digital tracking shows:

✅ Products shouldn't just be recycled. They should live longer, better, and smarter.

That’s where the expanded 5R framework comes in.

The New 5Rs of Logistics

1. Reduce

Still the first, and still essential:

Brands must design smarter logistics flows to reduce waste, transport emissions, and inventory excess right from the start.

• Fewer returns by offering better sizing guides or virtual try-ons.
• Smarter production planning to avoid overstock.
• Local warehousing to cut shipping emissions.

💡 Example: Companies like Allbirds cut CO₂ by optimising packaging and warehouse proximity.

2. Reuse

The second R now means more than internal packaging reuse.

It’s about building systems that let products themselves stay in circulation.

• Reuse through trade-in programs (like the ones we explored in furniture take-back systems).
• Reuse through second-hand resale.
• Reuse through donations of lightly used products.

💡 Tip: Build logistics portals that don't just ship new goods — but also manage product returns for reuse.

3. Repair

Before recycling, comes repairing.

The ESPR will soon mandate repairability information at the point of sale for many products.

Logistics systems must adapt:

• Return flows for repairs.
• Inventory systems for spare parts.
• Technician networks for field repairs or workshops.

💡 Insight: Brands that offer fast, simple repair options can not only extend product life but also build serious customer loyalty.

4. Refurbish

A product that can’t stay with the original customer still has value.

Refurbishment logistics create massive new opportunities:

• Taking back products.
• Grading and repairing them.
• Reselling them at a discount with full warranty.

Think: refurbished furniture, certified pre-owned electronics, reconditioned textiles.

💡 Why it matters: According to McKinsey, refurbished products in electronics could account for 10%+ of sales volume by 2030 – and furniture and apparel aren’t far behind.

👉 We explore how IKEA’s Second-Chance Model leads the way.

5. Resell

Finally, the second life isn’t just about saving face – it’s about serious new revenue streams.

• B2C resell: brand-owned outlets for refurbished or second-hand items.
• B2B resell: bulk sales to reuse partners.
• In-store and online resale channels integrated into the brand ecosystem.

💡 Best practice: Brands like Patagonia’s “Worn Wear” and IKEA’s “As-Is” prove that resale can drive profit, loyalty, and brand differentiation all at once.

What’s different about logistics in 2025 and beyond?

Modern logistics isn't just about moving products anymore.

It's about managing circularity flows:

🔁 Where a product goes at the end of use
🔁 How it is evaluated for repair, reuse, or resale
🔁 How data (like Digital Product Passports) travels with it
🔁 How brands monetise and report on second-life processes

👉 Platforms like koorvi provide the digital infrastructure to automate take-backs, refurbishment flows, resale tracking, and compliance documentation.

Circular logistics isn’t a nice-to-have anymore.

It’s the next growth engine. 🚀

Brands that start now – investing in repair, refurbishment, and resale logistics – will not only meet regulatory standards like ESPR.

They’ll also build stronger loyalty, capture new revenue, and lead the circular economy transition.

👉 Curious how circular logistics could fit your brand? Let’s talk.