Friday, May 31st, 2024
Returning large number of very small volumes is challenging due to the fragmented landscape and lack of digitalization of the associated processes (e.g. e-commerce returns). Additionally, the new EU rules to reduce, reuse and recycle packaging (Packaging and Packaging Waste Regulation) aims to tackle constantly growing waste and boost the circular economy, and reducing packaging will call for more reusable packaging and new needs for manage reusable packaging will arise.
Alliance for Sustainable E-commerce, ASTER will share the importance and challenge of managing returns flows in an efficient and sustainable manner.
Several companies come one after the other to the same addresses to collect their (own) goods. Combination and mutualization of transports are not made or are made to a minimum. This makes transport very inefficient (so high CO2), and prevents reusables from being recovered (more CO2). One reason for this is that there is no infrastructure for collecting, sorting, and distributing consolidated loads.
A solution could be to collect orders via an app and offer them to an already existing infrastructure for collection. The party offering the service will adapt its own business model to cope with the diversity of goods. To gain structure, we can work with preferred partners and collection orders can also be consolidated in the 2nd line.
Pallet Control Tower (PCT) has conducted a concept study and would like to roll it out within the market segment of the pallet industry. This market is characterized by local collections and will experience a change in the business model in the coming years. Registering collection orders will consist of offering loading meters from the initiator for the collection and not by offering available loading meters in the truck.
Reversing the existing link between collection address and logistics service provider will result in savings on the number of kilometers to be driven for collection and on the 2nd step of consolidation and delivery to the next processing point (FTL). In addition to kilometers, existing locations will be used more optimally and there will therefore be a shift from several small locations to larger locations. Increased efficiency in several areas.
The logistics service provider will collect “everything” that cannot necessarily be returned to the original supplier for further processing. This includes all types of Reusable Transport Items (RTI), batteries, accumulators, PET bottles, containers with separated waste (renewable raw materials), metals and so on.
Another goal is to have multiple companies from multiple market segments work together so that there is better integration in the chain and consolidation occurs as early as possible by combining equivalent products and/or raw materials. In addition to physical advantages, the whole also provides the opportunity to monitor flows and can eventually be used for various forms of optimization.
1. Introduction
Michael will introduce the session and relevance of it within the ALICE scope. The changes expected in the packaging and packaging waste EU regulation will have an impact for the transport and logistics industry that will be forced to reduce the use of non reusable packaging. Additionally, managing returns is proved to be a complex and costly logistics problem that call for efficient solutions that can minimize externalities such as CO2 and congestion.
2. What do e-commerce returns and circular fashion have in common?
ASTER works with over 110 partners towards the mutual mission of making e-commerce efficient, sustainable and economically viable. Josephine, responsible for ASTER, will be lifting knowledge from research and ASTERs partners on the importance of managing returns flows in an efficient and sustainable manner. This by addressing common misconceptions on e-commerce returns, explaining the need and benefits of digitalising returns processes and how working with returns will help the e-commerce chain in preparing for circularity.
3. Returning large number of very small and fragmented volumes. Problem definition and value proposition
Bart will share an overview of the challenge of returning all type of items and will propose a potential solution to solve that problem in a more efficient and sustainable way.
4. Q&A and interactive session
5. Wrap up and closing
The recorded session videos and presentations are available in the ALICE members Intranet / Global Supply Network Coordination and Collaboration Group event page:
* Do note that this event is for ALICE members only! . None members are allowed to participate under confirmation of participation by ALICE
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URBANE is co-funded by the European Union under grant number 101069782. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Climate, Infrastructure and Environment Executive Agency (CINEA). Neither the European Union nor the granting authority can be held responsible for them. |