In the past, returns have solely been considered as unavoidable costs by organizations in consumer markets. However, according to the National Retail Federation, retail returns have risen dramatically, and in 2025 are estimated to cost almost $850 billion. This has led to new approaches to turn returns into profit, with one of the most promising areas being reverse logistics.

Reverse logistics is commonly managed by supply chain and operations leaders. In large organizations, this responsibility primarily falls to the Chief Supply Chain Officer (CSCO). The CSCO oversees cross-functional coordination across logistics, refurbishment, and product disposition. By taking ownership of the returns economy, CSCOs transform what was a cost center into a revenue-generating function. This positions them as one of the most valuable hires for retail logistics in 2026. 

The End of the “Cost-Center” Mentality

Reverse logistics and re-commerce creates new revenue streams for retailers with outcomes dependent on scale, grading speed, and the disposition strategy. CSCOs with deep experience in re-commerce identify and execute strategies that maximize value from the returns process.

According to Forbes, 2026 is expected to bring shifts in return policies as retailers tighten rules and pursue profitability. Yet the volume of returns is likely to stay extremely high. An experienced CSCO can transform these return volumes into measurable results, introducing “Profit Per Unit Returned” as a vital new metric on executive dashboards.

Collaboration Across the C-Suite

The impact of the CSCOs expertise and strategic agenda is magnified through collaboration across the C-suite, where actions with shared buy-in can quickly turn into profit:

1. Collaborating with Chief Financial Officers to unlock “hidden” balance sheet value, transforming potential operating losses into revenue gained.

2. Working with the Chief Operating Officers to integrate reverse logistics into external and internal operations.

3. Aligning with Chief Product Officers to define product strategies to account for returns and designing products to allow for disassembly and reuse.

Key CSCO Competencies for Reverse Logistics Success

Effective reverse logistics leadership goes beyond technical know-how. Companies should look for leaders who demonstrate the following:

1. Deep expertise in circular economy and ESG: Reverse logistics is ultimately tied to sustainability efforts, a key consideration for many consumers in today’s markets.

2. Knowledge of the full customer lifecycle and post-sale relationship with consumers: The best CSCOs understand that the customer journey doesn’t end at purchase. They map the entire experience that includes the potential return.

3. A collaborative mindset: CSCOs perform best when fully integrated with other executives in the C-suite, driving change across operations, customer services, and product development.

Consumers today are increasingly looking for seamless, thoughtful retail experiences. The above competencies equip CSCOs to integrate reverse logistics into a broader retail strategy, while continually considering the consumer’s perspective.

The Talent Gap: Why Traditional Logistics Leaders Struggle with Commercial Strategy

Traditional CSCOs tend to prioritize minimizing costs and waste reduction when it comes to logistics rather than the value of recovery. But with the evolving needs of consumer markets, commercial strategy needs to shift to embrace the opportunities presented by a circular economy.

Success requires more than technical knowledge. Logistics leaders across consumer markets must also understand the motivations behind returns. This is why having a CSCO with both a consumer-oriented mindset and C-suite strategic acumen is crucial for executing a reverse logistics model that delivers operational efficiency and customer value.

Identify and Hire Your New CSCO With IIC Partners

CSCOs with expertise in the return economy are poised to become one of the most in-demand hires for 2026 and beyond. IIC Partners, an executive search organization with 40 global offices, can help you to identify executive leaders who are deeply aligned with your culture and have the proven experience to advance your supply chain and reverse logistics strategy. Through our global talent networks, rigorous evaluation process, and cross-industry expertise, we can ensure your next supply chain leader is equipped for today’s opportunities and tomorrow’s challenges. Contact us below to talk with one of our expert consultants.