Blog
Beyond Circularity: The Reverse-Logistics KPI Brands Are Still Ignoring
1 | Circularity is table-stakes—speed is the tiebreaker
Sustainability programs that stop at “design for circularity” miss up to 30 % of potential value because returns move too slowly through the loop rla.org. A product that languishes in a warehouse may still be recycled eventually—but every idle day erodes resale price, carbon savings, and NPS alike.
2 | The hidden KPI: Asset-Velocity (AV)
Asset-Velocity = calendar days from customer return to revenue recovery (refurb resale, redeployment, or certified recycling).
Think of it as “time-to-value restoration.” Research released this month shows performance metrics—not circular slogans—explain 36 % of sustainability ROI variation in e-commerce supply chains researchgate.net. Yet AV is still absent from most dashboards.
3 | What slow AV really costs
| Delay (days) | Margin lost on a $600 device¹ | Extra CO₂ vs. same-week resale² |
|---|---|---|
| 7 | -$24 (price decay & handling) | +9 kg (storage & re-shipping) |
| 30 | -$87 | +38 kg |
¹Industry resale data ²Scope 3 modelling averages
Add customer churn, SLA penalties, and the damage compounds quickly.
4 | Five proven levers to cut AV in half
-
Intelligent triage automation – Using AI to automatic grading of returns for more consistency and faster turnaround.
- In-country depot repair – Eliminates cross-border customs delays and tariff exposure.
- Shared failure-data lake – Real-time defect codes let engineering fix root causes, reducing repeat returns.
- Dynamic parts pools – Stock high-fail SKUs at the depot, not the factory.
- Integrated recommerce channels – Pre-priced, channel-approved resale paths keep goods moving the moment QA clears.
5 | How to start measuring AV this quarter
| Step | Action | Target benchmark |
|---|---|---|
| 1 | Add return‐received & return-cleared timestamps to WMS | 100 % capture |
| 2 | Segment AV by product family & channel | < 10 days for A/V gear |
| 3 | Assign AV ownership (ops + finance) | Monthly exec review |
| 4 | Tie bonus multipliers to AV delta | –20 % YoY |
6 | With Microland: turning days into same-week dollars
Customers expect instant gratification—even on a repair. Microland’s API-linked depot in Markham closes the loop in 7.5 days average for Tier-1 brands. Our technicians, data stack, and in-house recommerce engine were built for asset-velocity before the term existed.
If your circularity plan still ends with a recycling certificate, let’s talk about unlocking the profit (and ESG credits) trapped in those extra days.
Footnotes & sources
RL Magazine, Edition 137, “Why Circularity Alone Isn’t Enough Anymore” (June 17 2025) rla.org
IIMBG Journal of Sustainable Business & Innovation, “Assessing performance metrics for e-commerce reverse logistics…” (June 2025) researchgate.net
Are you looking to establish a respected service presence in Canada? Contact Us for more info