Have you seen the video of an innovative way to pack a suit in a rolled-up cardboard tube (https://rollor.com/) that’s been circulating among the logistics crowd on LinkedIn? I must admit, new ideas on how to package anything more efficiently (and better yet, sustainably) is like catnip to me, a self-proclaimed tree-hugging logistics nerd. In this particular video, the company offers a seemingly simple but sturdy method to ship a suit jacket wrinkle-free! Unfortunately, while I am impressed with the rolled-up cardboard tube and it is more environmentally friendly than plastic and Styrofoam packages, it likely will still end up in a landfill or incinerator somewhere.
The COVID-19 pandemic expanded the e-commerce and food delivery markets in unprecedented ways and many consumers will likely continue to be loyal e-commerce shoppers even after the pandemic subsides. This may be good news to e-marketplaces and logistics companies that support e-commerce, but the mountains of packaging materials that go with every shipment are wreaking havoc on our planet.
The Singapore National Environment Agency calculated that in 2020, 1.14 million tons of paper and cardboard waste was generated (in a country with a population of 5.45 million). This represented an increase of 13% from 2019 and largely a result of home deliveries. Unfortunately, only 38% of this paper and cardboard waste is recycled. For plastic waste, the level of recycling is even worse at only 4%!
In an ideal world with a fully functioning circular economy, all packaging wastes should be recycled or reused. To achieve this, more investments in recycling processing systems are needed, a fact the government of Singapore is aware of and has made plans for this. But in the mean time, there is a pressing need to make packaging that can be recycled to begin with.
I recently watched a panel discussion on the circular economy featuring speakers representing the private and public sectors in Singapore, as well as experts from high-recycling countries. One concept really hit home for me: the mandate that companies have “extended producer responsibility” for the products they manufacture and the packaging they use. By making manufacturers responsible for the full life cycle of their products, they might be motivated to consider more sustainable material options in their manufacturing.
Another big takeaway from the panel discussion was that, the most successful way to increase the recovery of packaging and products is by incentivizing the consumer to do some of the work. For example, the deposit return principle, which encourages consumers to return packaging to designated collection points for the return of their deposits, has been proven as the best means for companies to retrieve their packaging in one place so they can more systematically collect them for reuse.
Logistically, this will make for opportunities in our sector. Not only will there be the initial delivery, but services to retrieve the products and the packaging will be a value-added offer. I see two ways logistics companies can capitalize on a circular economy:
1. Logistics companies can partner with packaging vendors that use sustainable materials and offer both packaging and logistics services to their clients.
2. Logistics companies can also design and propose a “package recovery” product for their clients. This could be done by the logistics company itself or outsourced to a trusted vendor whose service can then be folded into the package recovery program.
Beyond the trucks, the ships, and all the other hardware, logistics can be seen as a solutions services industry. As cities and communities move toward the circular economic model – it is critical for our industry to consider how we can be part of it to contribute and to benefit from it.
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