Backhaul refers to the process of transporting goods or merchandise from a retail store’s location back to a distribution center or a central hub. It involves the reverse logistics of moving items that are not sold or are returned by customers.
Backhauling helps optimize the supply chain by consolidating and returning unsold or returned products efficiently, reducing costs and improving inventory management. It can involve various transportation methods, such as trucks, shipping containers, or even direct shipments to suppliers. Backhaul plays a crucial role in ensuring that the right products are available at the right time, minimizing stockouts, and facilitating the flow of goods throughout the retail network.