Temperature-controlled return logistics: new research

Four models for return logistics

Mission Reuse’s research indicates that there is no single ideal model: which one fits best depends on the user, the device, the supplier and the context in which the device is used and returned. However, it is clear that efficient return logistics processes use existing logistics flows and that space-saving devices are preferred.

The four (existing) models mapped by Mission Reuse:

1. B2B pool system. A revolving pool of standardized packaging managed by a single system operator, leveraging current logistics infrastructure. Packaging should be foldable when empty for efficient storage. Transport of packaging is through a logistics party.

1. B2C pool system. A revolving pool of standardized packaging managed by all participating parties, utilizing current logistics infrastructure. Packaging is collected and reused by all participating parties. Transport of packaging is through a logistics party.

1. Independent B2C infrastructure. Packaging is transported and managed by one party, the resource owner, who “leases” the packaging to third parties. This requires a new infrastructure managed by the resource owner. Over time, this leads to independent and optimized logistics.

1. 3rd party dependent B2C infrastructure. Packaging is exchanged back and forth through a third-party delivery service. Packaging is owned by the packaging supplier and transportation is performed by a third party on existing infrastructure. As in the B2B pool system, it is important that empty packaging/aids are foldable to save space.

Opportunities for you as a company in leveraging return logistics

Designing your logistics processes differently, whether or not in cooperation with your transportation partner, is quite a challenge and will initially require an investment. But, it also offers you as an entrepreneur opportunities, according to the research of Mission Reuse. We list them for you:

• Turn customers into repeat customers. When you use return logistics from transportation partners who deliver to your customers’ homes to also take back the packaging, it is attractive for customers to have a new order delivered right away when they pick up the “old” packaging.
• Reward customers and avoid transaction costs. Transaction costs associated with a deposit system could increase substantially if it were to apply to all consumer packaging. Therefore, consider alternative rewards for returning packaging, such as discounts on future orders, credits and vouchers.
• Give customers an extra reason to choose you. Show that lowering environmental pressure is important to you as well and send a positive signal to consumers who want to contribute to a circular economy.
• Achieve economies of scale by combining delivery services with special requirements, such as temperature control.
• Enter into new collaborations. For example, establish central drop-off locations for the return and collection of e-commerce packaging and reduce environmental impact and last-mile transportation costs.

• Lead the way! In the bill, the PPWR sets ambitious goals for the reusability of transportation packaging (30% by 2030; 90% by 2040) and e-commerce packaging (10% by 2030; 50% by 2040). Not meeting these targets can be costly, and if a packaging does not meet the requirements of the PPWR, it may even have to be taken off the market. Seize your opportunity and be at the forefront of the circular transition: in the long run, you’re going to have to make it anyway.

When are reusables desirable? And when are they more “sustainable”?

An understandable question that comes up when talking about reusable packaging is whether reusable packaging is actually more sustainable than single-use packaging. That depends on the environmental impact of producing the packaging and raw materials required to do so, as well as how many times the packaging is reused and what happens to it at the end of its life. In short, the entire life cycle.

In general, new raw materials are by far the most damaging to the environment: transporting and even producing a tool don’t even come close in terms of footprint. The “design-for-recycling” criteria have a role in the PPWR for a reason: rather reuse products and recycle raw materials after the end of life as best as possible than continually extract new raw materials.

If your logistics processes are set up for one-way logistics, that is, only to the customer and not back, the challenge is to think about the possibilities of turning this into return logistics.