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/
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