The reverse logistics and returns part of the supply chain is often an overlooked and poorly managed process. Companies tend to concentrate their efforts on the advanced part of supply chain management, without taking advantage of the numerous opportunities offered by reverse logistics (Benton, 2007). What these companies don't understand is that effective reverse logistics management has the potential to make them more profitable and add value to many other parts of their supply chain. In the case of Johnson Automotive, we will analyze their current supply chain processes to determine their effectiveness by answering the following questions:1. What is reverse logistics?2. What are the key elements of reverse logistics in the automotive industry?3. How can Johnson optimize its reverse logistics channel? What is reverse logistics? The Reverse Logistics Association (2008) defines reverse logistics as “all activities associated with a product/service after the point of sale, the ultimate goal of optimizing or making more efficient the aftermarket” activity, saving money and environmental resources”. Since all these processes take place after the sale, this part of the company's operations could be seen simply as a cost center. This couldn't be further from the truth. The goal of any smart business manager should be to optimize all activities and ensure that maximum value is achieved for every dollar spent by the company. Some of the activities associated with reverse logistics are remanufacturing, recycling, reconditioning, warranty management, call-center management and transportation. The main objective of reverse logistics is to facilitate these activities in a way that helps the company achieve its business objectives. This is why reverse supply chain process design is so important. Every company needs specific processes aimed at increasing value for the company and its customers based on the type of industry it operates in and the type of products it provides. The main obstacle for most companies that are trying to optimize their supply chain return is the chaotic nature of reverse logistics. The volume within the returns supply chain is highly variable and difficult to predict or control (O'Reilly, 2005). Furthermore, timely product return is often not of great importance to end users and retailers. Therefore, any process that relies on the availability of cores or supplies will need to be flexible enough to handle supply variations.