The Sustainable Shift: Why Reusable Packaging Outperforms Cardboard and Plastic for Shipping

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 In today's e-commerce-driven world, packaging plays a crucial role in protecting goods during transit. However, the environmental impact of traditional single-use cardboard boxes and plastic mailers has become increasingly concerning. Enter reusable packaging - a sustainable solution that's revolutionizing the shipping industry. Let's explore why reusable packaging is the superior choice for businesses and the environment.

Dramatic Waste Reduction

Single-use cardboard boxes and plastic mailers used in e-commerce packaging contribute significantly to our global waste problem. In contrast, reusable packaging solutions can be used hundreds of times before needing replacement, dramatically reducing the amount of packaging waste entering landfills and oceans.

Lower Carbon Footprint

While the initial production of reusable packaging may require more resources, its long lifespan results in a much lower carbon footprint over time compared to single-use alternatives used in e-commerce packaging streams. The repeated manufacture and disposal of cardboard and plastic packaging leads to higher cumulative emissions.

Resource Conservation

Reusable packaging conserves valuable natural resources by eliminating the need for constant production of new cardboard boxes (which contributes to deforestation) and plastic mailers (which rely on fossil fuels). By using the same packaging repeatedly, we reduce demand for raw materials.

Cost Savings for Businesses

Though reusable packaging has a higher upfront cost, it offers significant long-term savings for businesses. The need to continually purchase single-use e-commerce packaging is eliminated, and waste management costs are reduced. Over time, reusable solutions prove more economical.

Enhanced Product Protection

Reusable packaging is designed for durability and repeated use, often providing superior protection for shipped goods compared to flimsy cardboard or thin plastic e-commerce packaging. This can lead to reduced product damage and returns, improving customer satisfaction.

Brand Enhancement

Using reusable packaging demonstrates a commitment to sustainability, enhancing brand image. As consumers increasingly prefer eco-friendly options, reusable packaging can be a powerful differentiator in a crowded market.

Improved Logistics

Standardized reusable packaging can streamline logistics operations. Unlike varied sizes of cardboard boxes, reusable containers often come in consistent dimensions, making storage, stacking, and transport more efficient.

Data Collection Opportunities

Many reusable packaging solutions incorporate tracking technology, allowing businesses to gather valuable data on shipping routes, times, and product handling - information that's lost with single-use packaging.

Adaptability and Customization

Reusable packaging can be easily customized with branding elements or adapted for specific product needs, offering flexibility that isn't always possible or cost-effective with traditional single-use options.

Closing the Loop

At the end of their long useful life, reusable packaging materials can often be recycled, truly closing the loop in a circular economy. This is in stark contrast to many types of plastic packaging that end up in landfills or contaminate recycling streams.

Conclusion

The shift to reusable packaging represents a significant step towards more sustainable e-commerce packaging and shipping practices. By dramatically reducing waste, lowering carbon emissions, and offering numerous operational benefits, reusable solutions are paving the way for a greener future in logistics. As businesses and consumers alike become more environmentally conscious, the adoption of reusable packaging is not just an eco-friendly choice - it's a smart business decision for the long term. 

Contact us today to get started!

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Debunking the Myth: Reusable Packaging and Emissions

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In the world of sustainable packaging, myths and misconceptions can sometimes cloud the facts. One persistent myth we often encounter at LimeLoop is the idea that transporting reusable packaging generates more emissions than single-use alternatives. Today, we're here to set the record straight and show you why reusable packaging is not just a smart choice for your business, but a crucial step towards a more sustainable future.

The Myth

Some skeptics argue that the additional transportation required for returning and reusing packaging leads to higher overall emissions, potentially negating the environmental benefits of reusable solutions.

The Reality

Research and real-world data tell a different story. In fact, reusable packaging saves a staggering 93% on emissions compared to single-use alternatives. Let's break down why:

1. Lifecycle Analysis

When we consider the environmental impact of packaging, we need to look at its entire lifecycle - from production to disposal. Single-use packaging requires constant production, using new resources and energy each time. Reusable packaging, on the other hand, spreads its production impact over multiple uses.

2. Material Efficiency

Reusable packaging is designed to be durable, often using materials that are more resource-efficient in the long run. While this might mean a slightly higher initial carbon footprint, it's quickly offset by repeated use.

3. Optimization of Return Logistics

Companies like LimeLoop have developed smart systems to optimize return logistics. We use existing postal routes and consolidate returns, minimizing additional transportation needs.

4. Reduced Waste Management

Single-use packaging ends up in landfills or recycling facilities after just one use. The emissions associated with waste management - including collection, sorting, and processing - add up quickly. Reusable packaging significantly reduces this burden.

5. Technological Advancements

With advancements in materials science and logistics technology, the efficiency of reusable packaging systems continues to improve, further widening the gap in emissions savings.

The Numbers Don't Lie

A comprehensive study by the Reusable Packaging Association found that reusable packaging systems can reduce carbon emissions by up to 60% compared to single-use systems. When we factor in the entire lifecycle and our optimized logistics, LimeLoop's solutions push this saving to an impressive 93%.

Beyond Emissions: Additional Benefits

While the emissions savings are significant, the benefits of reusable packaging extend even further:

• Reduced reliance on raw materials
• Decreased water usage in production
• Lower overall energy consumption
• Minimized waste in landfills

Join the Reusable Revolution

At LimeLoop, we're committed to delivering a world without waste. By choosing reusable packaging, you're not just making a smart business decision - you're contributing to a more sustainable future.

Don't let myths hold you back from making a real difference. Embrace the power of reusable packaging and be part of the solution to our global waste challenge.

Ready to reduce your emissions by 93%? Contact us today to learn how LimeLoop can transform your packaging strategy. This blog post addresses the myth head-on, provides clear facts and explanations, and ends with a call-to-action. It's designed to be informative, persuasive, and aligned with LimeLoop's mission. Remember to add any specific data or case studies from LimeLoop's experience to further strengthen the argument.

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How Individual and Collective Actions Can Drive Global Circularity Forward

Attending The World Economic Forum's Annual Meeting of the New Champions in 2024, also know as Summer Davos, on behalf of LimeLoop was an enlightening experience. The discussions and insights shared underscored the urgency and complexity of addressing global challenges, particularly in the context of sustainability and the global plastic treaty. Here are some key takeaways from the inspiring event in Dalian, China:

Individual and Collective Action

One of the most resonant themes was the need for both individual and collective action. Each of us has a role to play in driving change, whether through personal choices or by influencing broader organizational and societal shifts. The collective impact of individual actions can be profound, and it is essential that we all step forward together to create meaningful progress.

Reimagining Financial Structures

A significant point of discussion was the necessity to rethink our financial structures. Traditional models often prioritize short-term gains, which can be detrimental to long-term sustainability. We must be willing to explore and adopt new financial frameworks that support circular economies and sustainable practices. This might involve innovative funding mechanisms and impact investing that prioritize long-term environmental and social benefits.

Investing in Systems

Another crucial takeaway was the importance of investing in systems rather than just individual products or solutions. At LimeLoop, we have seen the benefits of a systems-based approach, which can lead to more sustainable and effective outcomes. This means looking beyond immediate returns and considering the broader, long-term impacts of our investments. Embracing this mindset is essential for developing and implementing circular solutions that can address the plastic crisis.

Corporate Commitment

The role of corporations in driving change cannot be overstated. Businesses have the power to make significant impacts, and their commitment to sustainable practices is vital. Corporations must actively participate in the development and implementation of circular solutions. This commitment is essential for the success of any global plastic treaty and for achieving broader sustainability goals.

The Power of Kindness

Interestingly, one of the most profound insights from the event was the critical role of kindness. In addressing global challenges, collaboration, understanding, and empathy are crucial. Kindness fosters cooperation and drives meaningful change, making it an indispensable component of our efforts to create a more sustainable world.

Policy Shifts: The Icing on the Cake

Policy shifts, such as the structure of the Global Plastic Treaty, are essential. These policies provide the framework and support needed to drive large-scale change. While individual and corporate actions are crucial, policy changes can amplify these efforts and ensure that they are sustained over the long term. These shifts are the icing on the cake, providing the necessary structure and support for a circular economy.

The Annual Meeting of the New Champions reinforced the importance of a multifaceted approach to sustainability. By taking steps forward individually and collectively, reimagining financial structures, investing in systems, securing corporate commitments, and embracing kindness, we can make significant strides in addressing the plastic crisis. The path forward requires effort from all of us, but with these principles in mind, I left the event feeling both challenged and hopeful about our ability to create a cleaner, more circular future.

Join us in the reuse revolution and let's create a circular economy together!

Ashley Etling

CEO & Co-Founder

@thelimeloop

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Embracing Circularity: 5 Compelling Reasons for Leaders

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In today's rapidly evolving business landscape, sustainability and resource efficiency have become paramount concerns for enterprises across industries. As all leaders navigate the complexities of modern-day operations, embracing circularity – a regenerative approach that minimizes waste and maximizes resource utilization – is no longer just a buzzword; it's a strategic imperative.

Here are the top five reasons why C-suite leaders should prioritize circularity in their organizational strategies.

1. Innovative Sustainability. Mitigating Environmental Impact and Regulatory Risks

As environmental regulations tighten and consumer awareness of sustainability issues grows, companies that fail to adopt circular practices risk facing hefty fines, repetitional damage, and potential legal liabilities. By embracing circularity, enterprises can proactively mitigate these risks, reduce their environmental footprint, and position themselves as responsible corporate citizens.

2. Sustainable Profitability. Enhancing Resource Efficiency and Cost Savings

Circularity is inherently geared towards optimizing resource utilization and minimizing waste.

By embracing circular business models, such as product-as-a-service, remanufacturing, or closed-loop reusables, enterprises can significantly reduce their reliance on finite raw materials, lower operational costs, and unlock new revenue streams through innovative product life-cycle management.

3. Driving Innovation and Circular Competitive Advantages

Embracing circularity fosters a culture of innovation within organizations.

By rethinking traditional linear business models and exploring new ways to create value from existing resources, enterprises can develop cutting-edge products, services, and processes that differentiate them from competitors and create sustainable competitive advantages.

4. Elevating Brand Equity. Attracting and Retaining Top Talent

Today's workforce, particularly younger generations, is increasingly conscious of environmental and social issues. By demonstrating a genuine commitment to circularity and sustainability, enterprises can enhance their employer brand, attract top talent, and foster a sense of purpose and engagement among their employees.

5. Future-Proofing Business Operations with Circularity

As the global economy transitions towards a more sustainable and circular model, enterprises that fail to adapt risk becoming obsolete. By embracing circularity now, all leaders can future-proof their organizations, positioning them to thrive in an increasingly resource-constrained and environmentally conscious world.

"The circular economy is becoming a core component of forward-looking business strategy. By rethinking the way we design, make, and use products and materials, companies can open up new opportunities for growth and value creation while reducing risks and increasing resilience." - Naoko Ishii, CEO and Chairperson of the Global Environment Facility

Implementing circularity is not just a matter of compliance or public relations; it's a strategic imperative that can drive long-term value creation, innovation, and resilience for enterprises. As leaders, the time to act is now – by integrating circularity into their organizational strategies, they can pave the way for a more sustainable, efficient, and future-ready business landscape.

 Want to learn more about embracing circularity. Let's grab a coffee. 

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Reusable Packaging Made Easy: 1000’s of Toad&Co Customers Rave About LimeLoop Mailers

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At LimeLoop, we're dedicated to revolutionizing product shipping and delivery, championing innovative sustainable packaging solutions that minimize waste and promote environmental stewardship. Our esteemed partner, Toad&Co, has enthusiastically embraced this mission by integrating the LimeLoop Reusable Mailer into their shipping options, providing customers with an eco-conscious alternative. Let's delve into the firsthand experiences of Toad&Co customers utilizing the LimeLoop Mailer and explore the seamless implementation of reusable packaging.

How Reusable Packaging Opt-In Works for Toad&Co Customers. 

When Toad&Co customers opt-in to the reusable packaging program, their order will be shipped via Ground service. Opting for Toad&Co's LimeLoop shipping option means they’ll receive their order in a durable, eco-friendly reusable mailer crafted from upcycled billboards. Once they receive the LimeLoop Reusable Mailer, they simply return it to us for reuse, perpetuating a cycle of sustainability.

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Giving Packaging a Makeover. Toad&Co Customer Reviews.

Real talk: Packaging is one of the biggest sustainability hurdles we face. There were 131 billion packages shipped worldwide in 2020 – and this number is expected to double in the next five years. With no signs of this slowing, Toad&Co is focusing on doing everything they can to lessen their impact when it comes to shipping and packaging. Here are a few of many reviews from their customers.  

1. Eco-Friendly and Convenient

"What a fantastic idea. I wish more vendors did this. I received 3 items in a black bag that still folded up and fit (just) in our mailbox. Each garment came in a lightweight and easily recyclable (or reusable) paper envelope. The bag they came in was zippered around the edge and secured with 2 snaps. In addition, there was a zip-tie that secured the zipper-pull to a loop on the shipping bag.!" Sarah D.

2. Reducing Waste & Ensuring Product Safety

"Awesome shipping method! These are so sturdy and well made. They have a soft lining to protect the contents. Plus, they don’t look like a retail shipment, so I don’t worry as much about the package being stolen out of my mailbox or off my porch." - Heather W.

3. Effortless Reusability

"I'm not one to want to do an extra step like return a mailer to the post office, but honestly it was really easy. They have plenty of time to return it so you didn't feel rushed. But honestly, if they charged you for being late to return it I wouldn't mind. Sometimes you need a little motivation. I love that using the mailer saves using a box, unlike the million boxes I just got from an Amazon order (eek!)!" - Lindsay L.

4. The Feel-Good Sustainable Experience

"I’ve always been happy with my Toad threads. The LimeLoop Mailer makes the whole experience even better! One more way that the Toads are demonstrating their caring for our environment!" - Linda P.

5. Empowering Sustainability

“Thank you Toad&Co for using these LimeLoop mailers! I feel a lot better ordering from any company that is committed to sustainability in tangible ways.” Amanda Z.

At LimeLoop, we're honored to collaborate with visionary partners like Toad&Co in pioneering sustainable practices within the e-commerce packaging landscape. Together, we're driving positive change towards a greener future, one reusable mailer at a time. Join us in our mission to reduce waste and safeguard our planet. Opt for the LimeLoop Mailer in your next Toad&Co order and become a part of the eco-friendly revolution!

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The underlying fear of making a change

On a scale of 1-10 with 1 being not at all and 10 being absolutely, how comfortable are you with change? 

So many of us fall somewhere in the middle, but it really does depend on the circumstances. Sometimes, change can be really simple and other times, it can cause stress and/or anxious thoughts. Change, though it is inevitable, is often met with fear and resistance. This is especially true in supply chain management with all of the complexities that come in this industry.

We hear pretty consistently from those in supply chain that if it isn’t broken, why fix it? 

While this may be an unpopular opinion at times, I’d say that if it isn’t broken AND you aren’t looking to make it even better, you’re missing out on a huge opportunity…

Why we fear change

Change can be downright intimidating. 

Despite its potential for growth and opportunity, change often triggers a deep-rooted fear within us due to our innate tendency to seek stability and familiarity. Over 30% of Americans fear the unknown. Our brains are wired to resist change as a survival mechanism. For some, this comes in the form of job security, others financial wellness, and for some it could be a need for validation. 

I want you to think about your current day-to-day life for a moment. If you had to audit it, I bet you could find at least four areas where you could adjust and make your day more efficient–whether that is in time management, commuting, quality time with friends and family, etc. 

What is holding you back from making those changes?

Sticking to your routine, the same strategies, is safe; it’s comfortable. However, when you adapt to change, you grow and adapt to the landscapes around you that are constantly shifting and evolving like technology, customer preferences, and market trends. 

What you’ll miss

If you can’t adapt, you won’t stay relevant and your competitors will run you right out of your place. 

Technology

Always evolving, always changing. Technology is constantly getting better and there are always going to be new technologies coming into focus. While you won’t need to be an expert at them all, you do need to have some form of technological growth in your roadmap. It’s important here to remember that not all tech is created equal so aligning your tech and partnership with your goals is increasingly more important.

Customer preferences

We all want to say that we are driving our business forward, but it’s really your customers that help drive momentum. You aren’t adjusting your product to fit every customers’ needs but there’s a trend happening that your customers want and look to you to provide. One big one these days is around doing better for the environment. Over 60% of consumers want to purchase from a brand that prioritizes the environment and can prove it. There are so many ways to make greener choices in your supply chain yet making the “change” to do it is daunting. It doesn’t have to be…

Market trends

Again with the word “trend”. Trends come and go. The market fluctuates. What stays is your brand and your mission behind your brand. If you can make changes internally and externally that adhere to what the market and consumers are looking for while staying true to your mission and brand values, you’re winning. And there are ways to do this that put your ROI in a positive position. 

Change is inevitable 

Let’s flip the script. Change is inevitable so rather than letting it hold you back, why not embrace it?

Do you have any fears about change in your current supply chain? Is cost holding you back? Or maybe it’s the time you think it will take? Maybe it’s a fear of implementing something that ends up being a failure? 

Just remember that change is natural and it will happen regardless. Rather than be a passive bystander, be the changemaker that brings a more efficient, economical and environmentally friendly process to your business. 

To learn more about positive change in your supply chain that can save you money and help you reach your ESG goals, schedule a call. Together, with reusable packaging, we can deliver a world without waste. 

Inventory management holding you up? Consider these 7 tips

In the intricate dance of supply chains and operations, where precision and efficiency reign supreme, inventory management stands as a crucial pillar. There’s nothing more frustrating for one of your workers than when they are trying to find a product in your backroom and can’t find it anywhere… When this happens, it’s a pretty clear sign that your inventory management isn’t working as it should.

With how quickly and efficiently the world today runs, effective inventory management is not just a necessity; it's a strategic advantage. 

The task of store replenishment can already be a daunting challenge, riddled with complexities and potential pitfalls. Knowing where your products are 24/7 is crucial for your bottom-line so you can make quick decisions and prioritize what’s important: selling your products.  

Inventory management matters

Inventory management is the heartbeat of any supply chain-driven business. Maintaining the right balance between supply and demand is the linchpin that ensures customer satisfaction, minimized costs, and increased profitability. 

It’s no easy task to ensure that products are readily available when needed and without overburdening warehouses with excessive stock. It’s truly a dance to figure out how much is needed and where and how quickly it will get there… There’s no shortage of issues that can occur in this process…

6 inventory management stressors

There are a unique set of challenges when it comes to inventory management, particularly in the realm of store replenishment. Some of these pains include:

Forecasting Uncertainty: Fluctuating demand patterns, seasonal variations, and unforeseen market shifts can make accurate demand forecasting a tricky endeavor.

Excess or Insufficient Stock: Striking the right balance between having enough inventory to meet demand and avoiding overstock situations requires meticulous planning.

Working Capital Strain: Tied-up capital in excess inventory or slow-moving items can impact the financial health of the business.

Lead Time Complexities: Dealing with varying lead times from suppliers and managing timely replenishments can lead to supply disruptions.

Data Overload: Managing and interpreting vast amounts of data related to products, suppliers, and customer behavior can be overwhelming.

Operational Inefficiencies: Poorly managed inventory can result in inefficiencies in warehousing, order fulfillment, and transportation.

Are any of these all too familiar for you? What can you do to optimize your inventory management? 

7 tips to enhance your inventory management

Depending on where you feel like your inventory management is bottlenecked, there is a solution to help. 

Of the below, which is an area where you feel you could improve and/or enhance in your current processes?

1. Advanced Forecasting Techniques: Leverage data analytics and machine learning to refine your demand forecasting models. Incorporate historical data, market trends, and external factors to enhance accuracy.

2. Collaborative Partnerships: Foster strong relationships with suppliers to improve lead times and maintain open communication channels for seamless store replenishment.

3. ABC Analysis: Classify your inventory based on value and usage to prioritize management efforts. Focus on high-value items while implementing different strategies for low-value products.

4. Just-In-Time (JIT) Strategy: Implement JIT principles to minimize excess inventory and reduce working capital strain. Streamline processes to ensure products arrive precisely when needed.

5. Inventory Management Software: Invest in advanced inventory management software to automate data collection, optimize reorder points, and track stock levels in real-time. 

6. Trackable Reusable Packaging: Invest in reusable packaging with sensors built in to it so you can truly track your inventory everywhere it goes. Manage your products from afar and gain better peace of mind that it is safe, secure and on the right journey. 

7. Regular Performance Review: Conduct regular audits to identify slow-moving items, excess stock, and potential process bottlenecks. Adjust strategies based on the data and insights gathered.

The dynamic landscape of retail…

Supply chains are currently and will remain dynamic in our ever-changing landscape. Mastering the art of inventory management, knowing you have to be ready to adjust at any moment, is the key to success.

However, when you remember the 7 tips listed above and prioritize the areas that need more of your oversight, you can optimize inventory levels, reduce costs, enhance customer satisfaction, and pave the way for sustained success in an ever-evolving marketplace. 

Seamless inventory management empowers your business to respond quickly to market changes, capitalize on trends, and maintain a competitive edge.

Effective inventory management isn't just a goal; it's the cornerstone of a resilient and agile supply chain.

The importance of a logistics strategy in today’s ever changing supply chains

Supply chains have always been the backbone of any business. They ensure the smooth and efficient flow of your goods and services from the point of origin to your end consumer.

Now for a moment, I want you to envision what your business would look like without the supply chain you currently have now. 

For some, this may be chaos. For others, you may be thrilled at the prospect of a supply chain that is more organized and more efficient. And for those that aren’t confident in their current supply chain specifically, rethinking your supply chain strategy–or components in your supply strategy–is so important for your bottom line.

However, in recent years, supply chains have faced numerous challenges, and as you know, the pandemic only further exacerbated these issues. 

A big question that should always be a part of your supply chain strategy is understanding how you can prepare for additional changes and impacts from external factors that may come…

Recent impacts on supply chains

So, what has happened to significantly impact supply chains in recent years? 

There are three major buckets that have made some big impacts in today’s supply chain management.

Decreased global trade: As you know, global trade experienced a significant decline of 5.3% in 2020 due to the pandemic. Lockdowns, travel restrictions, and reduced consumer demand disrupted supply chain networks worldwide, resulting in delays, shortages, and increased costs.

Increased ecommerce demand: With people staying home, online shopping skyrocketed. According to Statista, global e-commerce sales exceeded $5.7 trillion in 2022, up by 24.9% from the previous two years.. This surge in demand placed tremendous pressure on supply chains, requiring faster and more efficient delivery options.

Supply chain visibility challenges: Many supply chains lack transparency and real-time visibility, making it difficult to identify bottlenecks and respond to disruptions. A survey by Deloitte found that only 6% of organizations have complete visibility across their supply chains. This lack of visibility hampers the ability to make informed decisions and optimize operations.

So, why is a supply chain strategy so important to function smoothly?

Given the challenges faced by today's supply chains, having a robust logistics strategy is crucial. A logistics strategy provides a roadmap for effectively managing the movement and storage of goods, reducing costs, and meeting customer expectations. And, it ensures a competitive advantage by improving efficiency, reducing lead times, and mitigating risks.

No one wants chaos in their supply chain…

5 key elements of a logistics strategy

Some of these elements will seem obvious, but they can be easily overlooked.

When developing a logistics strategy, consider including the following key elements:

1. Supply Chain Network Optimization: Analyze, analyze, analyze. Start by analyzing your supply chain network and identify opportunities for consolidation, reconfigurations, or optimization. You’d be surprised at how much you are overpaying, how many duplicating efforts you have, and what you just don’t need anymore. This process can help reduce transportation costs, improve delivery times, and enhance overall efficiency. 
   
   Before you overthink it, yes, this will take time but it is worth it.

2. Collaborative Relationships: Foster strong relationships with suppliers, manufacturers, and logistics partners. This may seem like a no-brainer but it can easily be overlooked. 
   
   Collaboration and sharing information can lead to greater efficiency, better inventory management, and improved responsiveness to disruptions. It also ensures that your processes and systems within your supply chain from manufacturing to transportation to first, middle and last mile are all lock-in-step. 

3. Real-time Visibility and Tracking: Invest in technologies that provide real-time visibility and tracking capabilities across your supply chain. This enables you to proactively identify bottlenecks and respond to disruptions quickly.
   
   Being able to track your packages at all hours of the day 365 days a week provides more insight and awareness of the who, what, when and where of your products. There is less room for mistakes and more room for making data-driven decisions. These could look like: optimizing transportation routes, better inventory management, stronger personnel scheduling, and more.

4. Effective Inventory Management: Optimize inventory with demand forecasting tools and accurate sales data. This minimizes inventory holding costs while ensuring product availability and reducing the risk of stockouts.
   
   Data, data, data. You can’t make decisions without data and this is where utilizing real-time tracking and inventory management systems together are so important. Do your systems track your inventory effectively? Does your team know when and where to look? Do you feel confident in forecasting with what data you have?

5. Reusable Packaging Solutions: Adopting reusable packaging solutions can provide environmental benefits while reducing costs. According to a study by the Sustainability Consortium, reusable packaging can reduce packaging waste by up to 95% and supply chain costs by up to 20%.
   
   This is a common misconception that reusable packaging is going to add more work and more costs in your supply chain. However, we know that isn’t true. We’ve seen packaging cost savings up to 88% for a full year. That’s not insignificant…

Your competitive advantage

In today's dynamic business environment, an effective logistics strategy is essential for maintaining a competitive advantage. We know that supply chains are wrought with vulnerabilities, but that doesn’t mean you can’t find the solution before they occur. 

Using the key elements above to audit your supply chain is worth the effort to find ways you can be more efficient–in cost, operations and time. Let’s be more proactive rather than reactive. 

Looking for better supply chain optimization and overall decreased costs? Learn more about LimeLoop’s Trackable Reusable Packaging

4 ways you can support your wholesale shipping

Wholesale shipping plays a vital role in the success of retail organizations. 

It involves the movement of large quantities of goods from manufacturers or suppliers to retailers, and ensures that products are efficiently delivered to meet consumer demands. This area of supply chain management is nothing short of complex. So many factors go into the decision-making around wholesale shipping, like:

• Procurement
• Operational efficiency
• Delivery times
• Delivery methods (ocean, air, land)
• Inventory management
• Tracking capabilities
• Forecasting

In today's fast-paced retail landscape, where ecommerce continues to grow and retailers are seeing the increasing impact of physical brick-and-mortar stores, optimizing the wholesale shipping process becomes even more critical. Not-to-mention the stress around ever-changing regulations and politics…

Regardless, there are ways to best support your wholesale shipping strategy and enhance your retail organization’s logistics.

Wholesale shipping isn’t going anywhere

Wholesale shipping is and will remain a fundamental part of the retail industry, and its significance is only increasing. 

According to Statista, global ecommerce sales are projected to reach a staggering $6.3 trillion by 2024, highlighting the continued growth of online shopping. As consumers increasingly turn to ecommerce platforms for their purchases, the need for efficient wholesale shipping becomes even more critical.

Ensuring timely delivery of products to wholesalers, customers' doorsteps and physical stores around the globe will keep your customers and your revenue streams happy.

What is this I’ve heard about brick-and-mortars and chapter 11’s though?

In recent years, we've witnessed the closure of several well-established retail stores, while others have faced financial turmoil and entered Chapter 11 bankruptcy protection. This is nothing new as businesses start and end, but it does feel like there have been more discussions around this topic since 2020. 

However, these developments can be attributed to various factors, such as:

• Changing consumer preferences
• Increased competition
• Ease of access with ecommerce

Though the closure of just some physical stores doesn't diminish the importance of wholesale shipping; it merely underscores the need for retailers to adapt their strategies to the evolving retail landscape. 

When you enhance your wholesale shipping operations, you can remain competitive and thrive in this dynamic market.

So, what does enhancing your wholesale shipping logistics look like? 

Let’s dig into it…

4 wholesale shipping enhancements

1. Invest in the right Inventory Management Systems
   • Efficient inventory management is crucial for seamless wholesale shipping. By implementing advanced inventory management systems, such as automated inventory tracking and real-time stock monitoring, retailers can optimize their supply chain processes. These systems enable accurate demand forecasting, prevent stockouts, and minimize the risk of overstocking. Over half of Operations professionals agreed that advanced inventory management solutions positively impacted their wholesale shipping processes, resulting in improved customer satisfaction and increased profitability.
   • Seems like a no-brainer, but not all Inventory Management Systems are created equally. Do your research to find what you need for your organization. What are your “must-haves”?

2. Optimize warehouse operations
   • Streamlining warehouse operations is essential to ensure the smooth flow of goods during the wholesale shipping process. Implementing warehouse management systems (WMS) and utilizing technologies like barcoding and RFID tagging can enhance inventory visibility, reduce errors, and expedite order fulfillment. It’s been found that companies employing WMS achieved a 16% reduction in order cycle times and a 6% increase in order accuracy, leading to greater operational efficiency.
   • Additionally, do you know where there are places in your warehouse operations where you could cut down on time and resources to be more efficient? One less commonly thought of way is to move to reusable packaging. We’ve found that by switching to reusable packaging from cardboard, you could save $225,000 per year in retail operations (based on 75 retail store locations with weekly shipments of 50 boxes – ask me more about this).

3. Collaborate with reliable logistics partners
   • Partnering with dependable logistics providers can significantly improve wholesale shipping efficiency. Seek out logistics companies with a strong track record in handling retail shipments and who offer competitive pricing, reliable delivery timelines, and robust tracking capabilities. According to a report by Armstrong & Associates, the third-party logistics (3PL) market grew by 10.5% in 2020, indicating the increasing importance of outsourcing logistics services. Leveraging the expertise of 3PL providers can help retailers optimize their shipping processes, reduce costs, and enhance customer satisfaction.

4. Embrace data analytics
   • Data analytics plays a vital role in identifying areas for improvement in wholesale shipping. By leveraging data from various sources, including sales, customer behavior, and logistics, retailers can gain valuable insights to optimize their supply chain. Predictive analytics can help forecast demand accurately, enabling retailers to plan inventory levels and reduce lead times. A study by McKinsey revealed that companies using advanced analytics in their supply chain operations experienced a 3-4% increase in perfect order rates, resulting in enhanced customer loyalty and improved profitability.
   • As mentioned above, RFID tagging can help provide more data about what goes on inside your warehouse operations, but there’s more data to be captured that your current inventory management and warehouse management software can only capture so much of. What about your sustainability data and the ability to track your packages 24/7/365? Moving to reusable packaging that provides real-time tracking gives you more visibility into your supply chain so you can optimize, optimize, optimize.

So, what’s next?

Wholesale shipping remains an indispensable part of the retail industry, and it requires a good amount of trust with your distributors.

By investing in advanced inventory management systems, optimizing warehouse operations, collaborating with reliable logistics partners, and embracing data analytics, retail organizations can improve their wholesale shipping efficiency, reduce costs, and deliver exceptional customer experiences. 

By adapting to the changing retail landscape and prioritizing efficient wholesale shipping, retailers can navigate the industry's challenges and emerge as leaders in the evolving marketplace.

Looking for more visibility into your supply chain? Learn more about LimeLoop’s Trackable Reusable Packaging 

4 ways reusable packaging can save you money

In an era where sustainability and cost efficiency are paramount, businesses are seeking innovative ways to reduce waste and maximize their profits. 

One such solution gaining popularity is reusable packaging. When you replace traditional cardboard with reusable packaging in your supply chain, you can significantly cut costs while simultaneously contributing to a greener future. 

A common misconception around sustainability is that it will actually cost you more money. That just simply isn’t accurate. In fact, in most cases, you can save money with reusable packaging. Though depending on your business model and products, in some cases, you may end up cost neutral. Regardless, the benefits to reusable packaging vs. cardboard are clear so if you’re still cost-neutral, why wouldn’t you ditch cardboard and switch to reusable packaging? 

In this blog post, we will explore the concept of reusable packaging and delve into four ways it can save money for retailers.

Understanding Reusable Packaging

Reusable packaging involves the use of durable containers, crates, or totes that can be repeatedly utilized throughout the supply chain. These containers are designed to withstand multiple trips, ensuring the safe transportation of goods from warehouses or distribution centers to retail stores.  

The key component here is that reusable packaging can be reused many, many times. Pro tip: If you’re looking to make the change to reusable packaging, look for ones that can be reused at least 100 times. 

Unlike one-time-use cardboard boxes, reusable packaging is constructed with longevity in mind, reducing your waste and your environmental impact.

So, how can reusable packaging save on costs?

Let’s dig into a few ways...

4 ways reusable packaging saves you money

1. Reduced Packaging Expenses
   • By adopting reusable packaging, retailers can significantly diminish their ongoing packaging expenses. Unlike traditional cardboard boxes that need to be repurchased frequently, reusable containers can be used hundreds of times before requiring replacement. This eliminates the need for regular investments in new packaging materials, ultimately leading to substantial cost savings. 
   • This seems obvious once you read it, but many times you see the initial upfront cost and think that it’s not going to be cost-effective. Because you eliminate the amount of times you need to purchase new cardboard boxes, you can truly save on costs with this upfront investment

2. Decreased Transportation Costs
   • Reusable packaging is not only durable but also stackable and easily collapsible. This feature optimizes space utilization during transportation, allowing more products to be shipped per trip. With increased product capacity, retailers can reduce the number of required shipments, which directly translates to lower transportation costs. Moreover, the sturdiness of reusable containers minimizes the risk of product damage, thereby reducing expenses associated with returns and replacements.
   • And, with the right partner, you can better track your packages reducing the risk for lost packages and inventory. Learn more about LimeLoop’s Trackable Reusable Packaging here. 

3. Efficient Inventory Management
   • Reusable packaging offers a significant advantage in streamlining inventory management processes. Unlike cardboard boxes that often need to be disassembled and discarded after delivery, reusable containers can be swiftly emptied, folded, and stored until the next shipment. This promotes a more efficient and organized warehouse or distribution center environment, reducing labor costs associated with cleaning up and disposing of packaging materials.
   • We’ve estimated that with every reusable package, you can save roughly $0.80 on overall efficiency. These numbers vary based on your own products and operations. If you want numbers tailored to your specific brand, click here. 

4. Enhanced Brand Image and Customer Loyalty
   • In addition to tangible cost savings, embracing reusable packaging demonstrates a retailer's commitment to sustainability. Consumers are increasingly conscious of environmental issues and actively seek out businesses that align with their values. More and more data is surfacing about how consumers want to purchase from brands that make sustainable choices. In fact, more than 60% of respondents said they’d pay more for a product with sustainable packaging. 
   • By incorporating reusable packaging, retailers can position themselves as eco-conscious and attract environmentally aware customers. This not only strengthens brand image but also fosters long-term customer loyalty, leading to increased sales and repeat business.

Sustainable can be cost effective

In a world striving for environmental sustainability and cost efficiency, reusable packaging stands out. And for retailers looking to make lasting, and quick, impacts to their ESG goals, reusable packaging stands out as an effective solution for just that. 

By transitioning from traditional cardboard boxes to durable and reusable containers, retailers can achieve substantial cost savings in packaging expenses, transportation costs, and labor expenditure. Moreover, the positive environmental impact and enhanced brand image associated with reusable packaging contribute to building customer loyalty and driving future sales. 

Are you ready for greater cost savings and a more sustainable and profitable future? 

Learn more about LimeLoop’s Trackable Reusable Packaging, click here.

Overcoming 9 major first, middle and last mile challenges for truly efficient deliveries

Over the last few years, we have all gotten a little more insight into the challenges within supply chains. Every step needed in getting a product from sourcing to manufacturing to warehousing to consumers, as what we hope is the final destination (a.k.a reducing landfill waste), is so intricately connected. 

So, when it comes to logistics and supply chain management, understanding the different stages of transportation then becomes crucial to literally keep things moving. 

Taking a quick inventory of your first, middle and last mile logistics helps to identify any blockers or limitations within your supply chain. And, each of these segments present unique challenges that require careful planning and execution.

First, how do we define each of these stages?

Breaking down each mile

First Mile

First mile refers to the initial stage of transportation, where goods are picked up from the manufacturer or warehouse and transported to a distribution center or hub. This stage is often the most critical as it sets the foundation for the entire transportation process. Proper planning and coordination are needed to ensure that goods are picked up on time and transported to the next destination without any issues.

Middle Mile

Middle mile refers to the stage of transportation where goods are transported from a distribution center or hub to a regional or national distribution center. This stage is focused on efficiency and speed, as goods need to be delivered to the next destination as quickly as possible. The middle mile is crucial for ensuring that goods are delivered on time and in the right condition.

Last Mile

Last mile refers to the final stage of transportation, where goods are delivered from a distribution center or hub to the customer's doorstep. This stage is the most visible to customers and is critical for ensuring that goods are delivered on time and in good condition. The last mile is also where the customer's experience is shaped, so it's important to have a reliable and efficient process in place.

When these stages are all working together, retailers’ operations become much more efficient and customers’ experiences become more positive.

However, these also come with their own transportation challenges…

Efficiently managing the first, middle, and last mile is essential for logistics companies to ensure timely and cost-effective delivery. When they aren’t working efficiently, the challenges can be quite painful. 

These challenges could look like:

First Mile

• Lack of visibility: Limited information about inventory and shipment status at the start of the supply chain can lead to delays and inefficiencies
• Fragmented transportation networks: Connecting various suppliers, manufacturers, and logistics providers within the first mile can be complex, leading to potential bottlenecks and disruptions
• Scalability: Rapidly scaling up operations to meet increasing demand can strain resources and logistics capabilities, making it difficult to ensure smooth operations

Middle Mile

• Optimal route planning: Determining the most efficient routes to transport goods between various points can be complex, especially when considering factors like traffic congestion, weather conditions, and regulatory restrictions.
• Freight consolidation: Efficiently consolidating shipments from multiple sources into larger loads helps reduce costs and improve overall transportation efficiency. However, coordinating and managing this consolidation process can be challenging.
• Inventory management: Maintaining accurate inventory data and visibility throughout the middle mile is crucial to prevent stockouts or excess inventory, as well as to optimize replenishment strategies.

Last Mile

• Complex urban environments: Delivering goods in densely populated areas with limited parking, traffic congestion, and intricate delivery routes can significantly impact delivery time and cost.
• Customer expectations: Rising customer expectations for faster and more flexible delivery options, such as same-day or time-specific deliveries, put pressure on logistics companies to meet these demands.
• Last-mile connectivity: Ensuring seamless connectivity between various delivery modes, such as trucks, drones, or autonomous vehicles, requires overcoming regulatory, infrastructure, and operational challenges.

What can you do about these challenges?

To minimize the transportation risks in your supply chain, here are five adjustments you can make:

• Invest in technology: Implementing advanced tracking and inventory management systems provides real-time visibility and enables efficient planning and coordination
• Collaboration and partnerships: Building strong partnerships with suppliers, manufacturers, and transportation providers helps streamline operations and enhance efficiency
• Automation and optimization: Leveraging automation technologies, such as robotics and AI, improves process efficiency and reduces manual errors.
• Warehouse optimization: Implementing advanced warehouse management systems (WMS) enables efficient inventory management, order fulfillment, and consolidation processes. Optimizing warehouse layout and using automation technologies like robotics can improve operational efficiency and reduce costs.
• Customer communication and self-service: Providing customers with real-time delivery updates, convenient delivery windows, and self-service options for rescheduling or redirecting packages can enhance customer satisfaction.

Each mile is equally as important

Each stage–first mile, middle mile and last mile–is crucial for ensuring that goods are delivered on time and in good condition, and that the customer's experience is positive. 

When you have a deep understanding of these stages, you can optimize your operations, improve your overall efficiency, improve your customer satisfaction and subsequently reduce costs. 

That’s why the ability to track your packages 24/7/365 is critical for today’s retailers. RFID and relying on carrier tracking isn’t going to cut it anymore…

If you’re ready to learn more about how to track your products in real-time at all hours of the day, schedule a call with one of our Reuse Specialists.

The 5 biggest supply chain hurdles in ecommerce

Ecommerce has revolutionized the retail industry, making it easier than ever for consumers to shop online. Amazon, Nordstrom, Etsy, eBay, Apple–all major ecommerce retailers that you’ve likely purchased from at some point or another. 

In 2023, it is estimated that 218.8 million US consumers will shop online, which is roughly 65% of the entire U.S. population. 

Would you rather shop in stores or online? Hear the bell as you open a door or the click of your mouse as you press “checkout”? 

While I try my best to explore local stores and wander through shops, I’m equally as guilty as anyone else of purchasing online and getting excited for the moment when the delivery man leaves it on my front porch and rings the doorbell.

I get excited for something that will likely arrive days into the future rather than the instant gratification if I were to stroll over to the store in person. Yet, consumers today spend so much time shopping online for that same feeling of instant gratification only it’s at the tip of their fingers when they click “checkout”, rather than the instant gratification of paying and taking it home then and there.

In other words, the “retail apocalypse” is among us.

What is that exactly?

The “retail apocalypse” is a recent term that describes the movement of consumers from brick and mortar retailers to the online, ecommerce space.

In 2022, ecommerce sales:

• Were estimated at $1,034.1 billion
  • An increase of 7.7 percent from 2021
• Accounted for 14.6 percent of total sales

Digitization has increased the ability of all retailers to grow their sales, and when the integration between online and offline is done correctly it is inevitable that this will trigger a real, virtuous circle.

However, running an ecommerce business comes with its own set of challenges, especially when it comes to the supply chain. 

5 biggest hurdles

1. Inventory Management
   • One of the biggest hurdles in the supply chain for ecommerce retailers is managing inventory. Without a physical store, retailers rely on accurate inventory data to ensure that they have the right products in stock to meet customer demand.
   • The #1 reason people shop online is that they’re able to shop at all hours of the day. This means that your inventory management system needs to be spot on as there likely isn’t anyone there managing the backend at 2am…
   • Tip–get a good understanding of your inventory control. If you can understand when to reorder, how much to reorder, how many more to order, and how long stock can stay in and out of the warehouse, you’ll be able to keep your ecommerce inventory solid.
   • Managing inventory is a huge undertaking, and it can be especially challenging for retailers that sell a wide variety of products.

2. Fulfillment
   • Another hurdle in the supply chain for ecommerce retailers is fulfilling orders. And important to distinguish, warehouses and ecommerce fulfillment are not the same thing. With more and more ecommerce buyers, retailers are facing increased pressure to get products to customers faster and cheaper. This requires a well-coordinated fulfillment process that includes everything from warehouse management to shipping and tracking.
   • Many times, it can be more cost-effective to work with a partner on ecommerce fulfillment, but of course, do your research first.

3. Returns and Refunds
   • Returns and refunds are a part of any retail business, but they can be particularly challenging for ecommerce retailers as there may not be a physical location for one to return an item back to the store. Understandably, returns and refunds can cause disruptions in the supply chain, and managing them can be time-consuming and costly.
   • The reverse logistics of your ecommerce is important to keep happy customers. The 5 R’s of reverse logistics include: returns, recalls, repairs, repackaging and recycling.
   • Focus on having a solution for the 5 R’s–a fully fledged returns strategy–and your customers will come back time and time again.

4. Global Shipping
   • Ecommerce retailers often sell to customers all over the world, which can lead to complex and costly logistics. Shipping internationally can be difficult, especially when dealing with customs, tariffs and taxes.
   • But, the reward is high. Statista has the average order value of an international sale at $147, which is 17% higher compared to an average domestic sale.
   • Tip–work with a last mile carrier that can help you find the most efficient–price, delivery time and metrics. 
   • Extra tip–USPS is typically the most cost-effective carrier internationally.

5. Cybersecurity
   • As unfortunate as this is, ecommerce retailers are also facing an increasing threat of cyber attacks. Protecting sensitive customer data and financial information is critical to maintaining the trust of customers and can be a significant hurdle in the supply chain.
   • Today’s supply chains are highly interconnected so if one is breached, the rest of the chain may be vulnerable as well.
   • A report from NCC Group found that supply chain cyber attacks increased by 51 percent between July and December 2021. 
   • Visibility is a high priority–companies need to know what’s going on across the supply chain, and where their inventory is at, at all times to reduce the risk of cyber attacks. 

Uncover your barriers

Ecommerce retailers face a number of hurdles in the supply chain, from managing inventory and fulfilling orders to dealing with returns and international shipping. 

While these hurdles will not disappear, there are efficient and effective ways to make them more manageable. 

When you understand where your specific hurdles are, you can implement strategies to overcome them to improve your operations and increase your bottom line.

A big component of LimeLoop’s Smart Reusable Packaging is in the word “smart”–our technology. Your ecommerce supply chain is only as good as your ability to track and manage where your products are at all times. And saving the environment one package at a time 

If you have questions about how our technology and reusable packaging can augment your supply chain management, please schedule a call.

3 simple swaps for a circular supply chain

For many of us, we’ve heard the 3 R’s (reduce, reuse and recycle) over and over again from childhood to adulthood. They’ve been ingrained into our behavior and our schooling since we were young. Yet, the main focus has primarily been on the 3rd R: Recycle.

Yes, recycling is a good habit to be in and I don’t want you to change that, but I do want you to take a moment to think about your recycling habits. 

What is it that you recycle today?

• Cardboard boxes
• Paper–envelopes, printer paper, mail, etc.
• Food containers–from berries, takeout, nuts, milk, egg cartons, etc.
• Glass jars
• Anything with a little triangle and a “1” or “2” in the triangle…

We are in the habit of tossing anything into the recycling bin with the expectation that we are doing something beneficial for the environment. While we do this personally in our homes, this habit continues into retail operations as well. Think cardboard boxes, polybags, excessive tape, plastic hangers, etc., and most of these items have a pretty short life span within stores.

Retail supply chains have a lot of moving parts, literally and figuratively, which means there can be plenty of opportunity for growth in creating a circular supply chain.

Circularity is where a product is reused or regenerated for extended use. Its lifespan extends single-use and helps keep materials in the circulation of life rather than into landfills.

How can we be better about fostering a circular economy? Through prioritizing the first two R’s: Reduce and Reuse.

Applying “reduce and reuse”

Earlier this year, Gartner shared a study on where and what organizations will prioritize when it comes to sustainability goals in their supply chain. A major focus of this reprioritization is within packaging. 

Specifically, Gartner predicts 20% of organizations with sustainable packaging goals will shift their focus from recycling and eliminating plastics to reducing the carbon footprint of their packaging by 2026. 

Cardboard is another main culprit impacting your carbon footprint at a large scale. 

After speaking with some local retailers nearby, I learned that many retailers use a cardboard box just once before it gets broken down and immediately thrown into the recycling bin. Sometimes, it skips recycling and just gets thrown into the trash…

Not only is this detrimental to sustainability goals, it is also costly. Cardboard isn’t cheap. Imagine spending $1.50 on every cardboard box to transfer your apparel from a distribution center (DC) to a local store and you have 15 stores to replenish twice every month with a plethora of single-use boxes. That’s $1.50 you throw away per box, per transfer. Over an entire year, this number will add up quickly.

Where can retailers adjust to encourage less waste–for the environment and their bottom line?

3 supply chain tips

Conduct a Materials Audit

Gain a better understanding of the materials you are using to package and ship your products from warehouse to DC, or direct to your consumers. Is there extra packaging that doesn’t provide much value? Are your products safe and secure in what they are traveling in? Are there wasteful or non-recyclable materials being used that could be swapped? When you employ circular design principles at the front end, you can significantly reduce waste at the end of your product’s lifecycle through packaging and transportation alone. 

Reduce Air Space

Air space can have a major impact on your environmental impact. When less is shipped inside a box that will still take up the same amount of space in a freight truck regardless of what’s inside it, that means you’re paying for air to travel. Highly wasteful here both to the environment and your bottom line. Work with your packaging partner or 3PL to find ways to reduce your air space so you only ship what you need to in a package that adheres to your products.

Redesign Your Packaging

Are you still shipping in cardboard boxes? Do you have plastic casings tucking your products in? Are packing peanuts still in your expense report?  If so, what is holding you back from reusable packaging? Cardboard boxes, even when made from recycled materials, still only get used 1-4 times before they are discarded. Some don’t get recycled at all and end up in landfills. There are more sustainable options. Reusable packaging can increase your cost savings by 15% plus and can be reused up to 200 times depending on the partner you work with.. 

The hardest part of switching to a more sustainable approach in your supply chain is the switch itself. It doesn’t have to be challenging when you work with a partner that is there with you every step of the way. 

If you want to learn more about how to swap seamlessly, click here to schedule a call and we’ll strategize together.

The 5Rs of reverse logistics

It’s said that 79 percent of customers view free returns as important, which makes sense when we think about reverse logistics as a driver of Customer Lifetime Value (LTV). Return policies give your customers confidence in you and your products because, well, sometimes things just don’t work out. 

It isn’t just because we face unprecedented challenges in logistics and supply chain that we need to revise our reverse logistics strategies, policies, or processes. These challenges only highlight what is an ever-growing problem – return waste. Reverse logistics, more specifically sustainable reverse logistics, is then more important than ever as customer demand for sustainability rises, along with Earth’s temperature. 

But what about the cost to you? And what do we do with all these returns? Where in the reverse logistics process can change occur for successful and profitable waste mitigation? 

Here’s our list of the 5 Rs of Reverse Logistics. Let’s explore each one.

1. Returns

This one’s seemingly obvious. For without returns, we wouldn’t need reverse logistics. Right? But let’s first consider the items returned and their life cycles. Apparel (88%) and shoes (44%) are the top returned items, and the most expensive to process. They’re expensive because without the right information or technology, retailers must take these returned items at face value.

Sure, customers can inform retailers about the item as much as possible. But with fraud being ever prevalent, who’s to say what’s what with that return? And if an item just didn’t fit, then why landfill it at all? Challenge number one in today’s reverse logistics systems: visibility. And not only visibility into the overall process – who has what and where? – but visibility into the item being returned. Period. 

Return waste begins at the product and ends with the packaging, but we’ll get into that in a bit. Retailers landfill returns because it’s cheaper and makes sense when considering they can’t possibly know what they don’t know. But customers and sustainable reverse logistics demand better. As we’re about to see, there are options around a return’s life cycle.

2. Reselling

Okay, we’ve established visibility as a tremendous challenge in mitigating and, eventually, eliminating return waste. However, in the meantime, there are returns which can be resold, aiding your triple-bottom line. But how can we resell items we know nothing about? With the right combination of technology, it’s possible to know what’s what about any return – apparel, shoes, or otherwise. 

EON, a tech company, integrates IoT into clothing, creating a “digital passport,” which provides insight into the full lifecycle of a piece of clothing. Imagine knowing information like how a piece of clothing was made, how it should be repaired or cleaned, and its past locations? Technology as such makes reselling returns that much easier and more cost effective when all retailers need to do is scan a QR code. 

When we think outside the box, we see beyond the visibility challenge. While a QR code can inform a retailer about the item, reusable packaging can inform a retailer about the package’s origin through its reverse journey. Gaining insight into a package’s journey and  gaining insight into the item being returned allows for more opportunity in reselling as retailers will know everything they need to be better able to safely reshelve a returned item. 

3. Repairs

“Got something that needs fixing?

Start your repair here or bring it in to a Patagonia-owned store.” 

Outdoor clothing giant, Patagonia, worked repairs right into their returns policy. They even provide their customers with DIY repair tutorials and articles to expedite the process because repairs aren’t necessarily the quickest route when attempting to clean up reverse logistics. Patagonia estimates clothing, gear, wetsuit, and wader repair turn around time at or about 10-12 weeks. That’s including determining whether an item is worthy of repair or not. And if not? Customers will wait for their item to be sent back, or for a credit if their item is beyond repair.

This makes sense when we think about determining end-of-life in sustainable reverse logistics. Most, if not all of Patagonia’s outerwear and gear is designed for longevity. While repairs help mitigate waste, the process is often labor and time intensive, which may cost retailers more upfront if they don’t have the system in place to process repairs. But with the right technology, any return policy can incorporate repairs.

The IoT enabled sensors in our reusable packaging, for example, help with resource allocation given the predictive analytics provided by the data collected on each package. With real-time tracking, retailers can better inform their customers of when they should expect their item back, but also inform labor decisions in hiring and recruiting employees for repairs, specifically, if a brand starts to see more and more repairs initiated at point of return. It isn’t a short-term solution, for data needs time to accumulate, but long-term, retailers could reinvigorate their workforce after enough circulations of their fleet of reusable packages. 

4. Reuse

We mentioned earlier that return waste begins with the product and ends with the packaging. Here’s why.

Single-use not only feeds the logistical and supply chain challenges, but it also adds to the waste we’re trying to mitigate. Now consider each time a customer sends an item back. We’re doubling, if not tripling, the single-use packaging, depending on a retailer’s reverse logistics process. Not to mention, we’re not learning anything about the product – where it is or has been, who’s handled it, how long did the customer wait to return it? We seek answers, not more questions. 

However, if retailers implemented sustainable shipping with reusable packaging, customers could send their returns in the same package their order came in, and retailers could use those same reusables to redistribute processed, salvageable returns. Reusable packaging with IoT and clothing with IoT? We know, we’re excited, too. Because what all this IoT means is that retailers, fulfillment centers, carriers, last-mile delivery services, customers, and those involved in reverse logistics can work collectively, simultaneously, and efficiently to clean up the waste and overcome supply chain challenges.

5. Recycling

Last, but not least, in our list of the 5 Rs of reverse logistics: recycling. There may be times when returned items are seemingly unsalvageable – perhaps they were damaged in transit or a retailer has worked recycling into their reverse logistics. Either way, recycled clothing, for example, may be used to make more. Evrnu, a textile innovations company, uses “NuCycl Technologies” to tap into the untapped natural resource that is discarded textiles.

With their technologies, Evrnu turns waste into a resource, adding value to the circularity of sustainable fashion. If more retailers knew the material makeup of returned clothing by using IoT enabled “digital passports,” and they understood the surrounding area given IoT enabled reusable packaging, retailers could make smarter, sustainable decisions in recycling processes that are environmentally friendly and profitable. 

What we came up with..

These 5 Rs of reverse logistics do not have to be the proverbial thorns in every retailer’s side because the application of technology and reuse creates a seamless reverse logistics process. Keeping customer LTV in mind, a retailer even just shipping with reusable packaging gains more insight into their reverse logistics, and overall supply chain, than those who ship with single-use. Put simply, a closed loop system will keep customers coming back. 

What you save (up to 60%) in packaging, your customers are further saving in time and effort. Returns become hassle free. Additionally, they become sustainable as retailers gain cumulative data-driven insights into the packages and the items being returned. And with the coupling of reuse and “digital passports,” there’s no reason for retailers to continue landfilling resellable, repairable, or recyclable returns.

Sustainable reverse logistics

Reverse logistics. Chances are you’ve heard this term before. But, sustainable reverse logistics? Stop right there. We know reverse logistics involves providing easy ecommerce return policies for your customers. But where does the sustainability piece come in? 

Returned items end up landfilled due to the lack of insight needed when determining what to do with them. However, sustainable shipping with reusable packaging provides retailers said insight into the returned package’s status. Thence, sustainable reverse logistics combines data with customer service and inventory management to create a seamless, closed loop system, which mitigates waste and costs.

Two out of every three people will return a holiday gift, according to Forbes.

Refund policies are important. However, it’s no secret that retailers face unprecedented supply chain challenges, making returns more expensive and unpredictable. Not only are retailers faced with the challenges of a lacking reverse logistics system – including increased fraud and increased time and damage costs – but they’re also working in overdrive to meet their customers’ needs the best they can with what is left of our supply chain.

Right. That’s why we stopped you. Let’s break this down.

When we add sustainability, we’re now concerned about the end-of-life of these returned items. The probability of those returned items being landfilled doesn’t have to be as high as it is. Hitendra Chaturvedi, a supply chain management professor of practice at Arizona State University, tells NPR, “That is what consumers don’t realize — the life of a return is a very, very sad path.” Of course, this is dependent upon a retailer’s policy and the item, or items, being returned; however, retailers are still feeling the weight of the challenges as they reinvent said return policies, such as what Business Insider refers to as “just-keep-it” refunds.

Do “Just-keep-it” refunds aid in sustainable shipping?

It costs $33, or 66% of a $50 item, to process a return, on average. These costs were up 59% in 2021 from 2020, according to a report done by CBRE and Optoro. And Business Insider says what takes one shipment to fulfill a customer’s order, takes three separate shipments for it to be returned. Remember, retailers have little insight into the “forward” logistics of a customer’s order – tracking numbers and generalized locations. Forget having to track the logistics of three different journeys.

As Kim Friddle, who runs a business processing both new and returned items for Amazon sellers tells Business Insider, “If it’s going back into inventory, that thing gets shipped three times before it gets back on Amazon shelves, and every time that costs money.” With little visibility, retailers grapple with finding value in processing returns they know little about.

By refunding customers, but not taking the items back, retailers risk losing $4.4 million, while the end-of-life remains. In the end, it becomes the customer’s responsibility to do with the item what they will. Do they hang onto it in hopes of regifting it? Or do they donate it? With the pandemic keeping people inside, there’s little desire to hold onto unwanted gifts. So, as the pressure to do something about the unwanted item increases, customers may lean on default disposal – throwing it away.

Leveling-up reverse logistics with reusable packaging for sustainable shipping.

Retailers in apparel are faced with an additional challenge in creating ecommerce experiences for their customers that mirror brick and mortar experiences in hopes of reducing the need for as many returns. Further still, the “buy now, choose later,” or “bracketing,” ecommerce experience – where customers buy multiple of the same item to then return the unwanted options for the desired one – create greater challenges when multiple returns eat away at labor and cost.

To level-up, we must close the loop, if you will. And we do that with reusable packaging and IoT. Each LimeLoop reusable package, being that it’s reusable, houses a simple BLE sensor which collects data from the point of order through to the return of the package. Yes, you guessed it. AND of any items for return.

Each sensor collects and tracks the real-time location, open rate, temperature, and environmental impact of each package. Meaning, if a retailer circulates 1000 packages throughout their supply chain, they have 1000+ data points translating into predictive analytics which inform retailers of not only products’ statuses but of their journeys to and from customers, fulfillment centers and in-between carriers.

Championing reuse for sustainable shipping & reverse logistics.

Sustainable reverse logistics is concerned with more than just customer LTV. Returns can carry more value if we invest in smarter systems. With more data, retailers make informed decisions about better navigating the end-of-life for products certainly worth giving a second chance. 

Landfills are the disposal default because exuberant costs in money, time, and labor devalue the potential of reverse logistics. Shipping with reusable packaging provides the necessary insight into determining an item’s end-of-life options without taking value, but rather adding it. With this data – housed on LimeLoop’s digital platform – retailers can more efficiently determine whether a returned item is damaged, repairable, reusable, resellable, or donatable. 

Retailers, then, have real-time, two-way conversations about their products by way of the data. And thus, begin to nurture a stronger and smarter system built to withstand supply chain challenges. Think of the possibilities! Say a customer in Philadelphia wants to order an item you just ran out of. It’s going to take a couple months to replenish the inventory in that particular fulfillment center. However, your fulfillment center in Detroit just received a return of that exact item. What’s stopping you from having that new order in Philadelphia fulfilled with the returned item in Detroit, especially if you know all there is to know about where it’s been and who’s handled it? 

Nothing.

A.K.A – customer delight not customer disappointment.

Profit & planet: reuse and reverse logistics at scale

When co-founders, CEO Ashley Etling and CTO Chantal Emmanuel, first started LimeLoop, they shared a frustration around single-use packaging and its effects on not only the environment but the economy, too. To combat single-use packaging waste, LimeLoop raised $100k, within its first month of its WeFunder campaign, in hopes of improving the supply chain.

“From a funding side, we’re definitely an early stage startup. But we have seen very early growth.” LimeLoop trialed its business model in partnership with Toad&CO, an outdoor retail apparel company based in Santa Barbara, to “test the logistics and the supply chain, and really understand the data infrastructure to add value to brands,” says Etling.  

Adding value to brands and consumers’ e-commerce experiences is exactly what Etling and Emmanuel pitch to host, Manuel Bleve, in this episode of Angel Notes.  

Profit & Planet

To understand the added value in LimeLoop’s Profit and Planet pitch, we must first identify Profit and Planet.

The Added Value – Brands

The feat of changing the current supply chain infrastructure, designed 150 years ago, from linear to circular is a daunting one. And while the nonprofit sector continues to make great strides in this area, the scale needed for any long term solution will require us to take the double bottom line into account. But how?

The Roadmap

Shipping is expensive, particularly in e-commerce, when considering the consumer experience. Returns drive up the costs of goods and communications between brands and consumers (and vice versa) are often lagged and inefficient. With LimeLoop, profit may result from the value added to a brand’s shipping and logistics. This, then, translates further to their relationships signaled by the brand’s environmental values and the connectivity offered from timely insights into the Shipper’s journey. 

A LimeLoop Shipper may be reused up to 200x, making it the perfect host for BLE (bluetooth low energy) sensors. Not only do brands save up to 40% in shipping costs by implementing reusable Shippers (Profit), while being able to quantify environmental savings (Planet), they also may begin to leverage reverse logistics.

Reverse Logistics & Returns

E-commerce returns rose to 70 percent, with 1.8 million returns initiated daily with UPS, in 2020. It costs a brand anywhere from $10 to $20 to process an item’s return. Not to mention the added waste –  5 billion tons of it. 

“A lot of integrating and changing the work systems of third-party logistics involved getting the shippers back as quickly as possible, so that you’re able to put those back into rotation quickly. And obviously, minimize the loss of the cost of goods,” explains Emmanuel to Bleve. 

When a brand uses LimeLoop’s Shippers and logistical data, the return process is seamlessly incorporated into the reuse process. Customers need only to place their returns inside the Shipper, place a pre-paid, already printed shipping label inside the outer pocket, and wait for it to be picked up. Then, specific to a brand, data is continually collected as the package makes its way to its necessary destination. 

Data – the package’s temperature, open-rate, and location – are collected and shared on a web-based platform, allowing brands and consumers the experience of brick-and-mortar due to the end-to-end visibility LimeLoop provides. This aids in eliminating return waste from the very start, but of course that can’t always be the case.

The Added Value – Consumers

LimeLoop’s pitch of Profit and Planet applies to consumers both indirectly and directly. 

Indirectly, consumers shopping with brands using LimeLoop Shippers have access to similar data as enterprises and SMB brands would – their environmental savings of CO2, water, trees, and oil. Directly, consumers have access to tracking and customer service features; moreover is the access to knowledge of an alternative way, a sustainable way, to consume goods.

“The information that’s available today is just not sufficient for people to be able to plan their lives around it, and so we wanted to get more granular in that data about where the package is and then therefore, learn more about how to streamline the delivery process to make that easier,” explains Emmanuel.

LimeLoop’s technology allows consumers to seamlessly fit reuse into their lives by interconnecting them with the brands they shop with and by streamlining e-commerce so that it is as if stepping right into the store. Yet, there’s another reason for consumers to consider reuse. 

Reuse vs. Recycling 

In Maine, taxpayers are paying an estimated $16 million annually to manage packaging materials and, at best, only 36% of these materials are being recycled. 

In Minnesota, taxpayers are taxed 9.75% of their total recycling bill – a bill calculated and sent to residents to cover the collection, transfer, storage, or disposal costs of recyclable items. 

In Indiana, 37% of taxpayers’ dollars are used to cover municipal recycling programs, which are still forced to shut down due to the volume of recyclables and the decreased market value of said materials.

Thus, consumers are paying for their recycling – plastic, metal, glass, and cardboard – to be processed when the reality is that only 9% of plastic packaging is actually recycled, while only 68% of cardboard is recycled. There is legislation in place to shift the costs of recycling to businesses producing the waste rather than to the taxpayers attempting to live green. But the real problems remain: volume and decreased market value. Problems only reuse and circularity can solve.

Because there’s little demand for recycled products, but an uptake in e-commerce, the surplus of material lands in landfills along with the returned items and all the single-use packaging. Purchasing or renting Shippers from LimeLoop, or shopping with brands who use LimeLoop Shippers, decreases the amount of packaging needed to be recycled or disposed of for both brands and consumers through reuse of the Shipper for not only deliveries, but returns, too. 

WeFunder

In raising $100k on WeFunder, LimeLoop plans to illuminate the ways in which the system can become a seamless marriage of Profit and Planet. Integrating reuse into the lives of consumers and into the business models of brands provides a bridge between sustainability and convenience.

“To get to a billion dollar company, we only have to capture 0.05%. So it just shows when you look at it from that perspective how large the market is and how ripe it is for change,” Etling points out to Bleve. She adds, “To make this systemic change, multiple companies [will need] to be big players within this whole system.”

 LimeLoop is ready. Are you?