If you do, you might be puzzled by the almost indecipherable complexity of it. However, the only way we can achieve the most sustainable solutions for e-commerce, is for consumers, brands and logistics service providers to work together. That’s why it is important to shed some light on e-commerce logistics.

We listed a few elements that environmentally conscious shoppers can take into account when purchasing items online, in the hope that it may inspire them to adopt more eco-friendly practices – and at the same time show how logistics can support brands in becoming more sustainable too.

Are you mindful about returns?

On average, 30% of items purchased online are returned versus only around 8% of items bought in a physical store.  What’s more, research shows that the vast majority of online shoppers want free return shipping and are reluctant to purchase from an online shop that charges returns. However, online shoppers have to bear in mind that their returns not only put a logistical and financial burden on the seller and their logistics partner but also have a sustainability implication.

Consumers should be educated about the environmental impact of their return that not just leads to unnecessary greenhouse gas emissions; but also may lead to additional waste in the landfill. After all, returns are not always resold, recycled or repurposed. So, as an online shopper especially when buying fashion, try to avoid giant purchases for the sake of trying things on of which you know you’ll likely have to ship part of it back.

As a response to the issue of the high return rate in the fashion segment, the circular economy practice of ‘recommerce’ market is gaining ground.  As Value Added Services for several e-commerce customers, Kuehne+Nagel's teams carefully check, clean and categorize all returns to either put them back in stock if they are in perfect condition, or put them aside for resale at a cheaper price (the latter would constitute ‘recommerce’). A nice example is the launch earlier this year of ‘Onward’, a resale site of the Swiss performance sportswear brand On Running.

However, some returned items are in a too deteriorated condition to be repurposed, and not all customers can afford to instate repurposing programmes for their returns. As an online shopper, the environmentally conscious thing to do therefore it to be mindful about returns… and to consider the recommerce market!

Do you consider the ‘packaging practices’ of your seller?

A study on European Consumer Packaging Perceptions by Hitchin and Bitterman in 2018 showed that 77% of all respondents are willing to pay extra for packaging that has less impact on the environment. How can brands play into that preference? To play into that preference, brands can educate their customers on sustainable packaging and identify themselves with eco-friendly packages practices. For example, parcels that arrive with non-recyclable materials from fossil-based materials (like plastic), have the biggest ecological impact. But there are many other factors to be considered.

Kuehne+Nagel’s workstream on sustainable packaging helps customers in their transition to more eco-friendly packaging. Among others, by looking into biodegradable ‘plastics’ for packing and so-called ‘void filling’ (i.e. material inside of the parcel box to protect the product during shipping). Carton is also more sustainable, although this comes with a side note: it needs to be put in the right recycling bin by the consumer as carton packaging that is not recused or recycled might even have a bigger ecological impact than plastic.

The Kuehne+Nagel teams also research economically viable options for customers to prevent ‘empty air’ (through oversized boxes). Overpacking leads to fewer parcels fitting in the delivery vans, hence increasing the transportation’s CO2e footprint per parcel. For a toy manufacturing customer, the team just introduced a machine that folds the height and width of parcel boxes to match the dimensions of its content to prevent empty air. Overall, the team analyzed 160 packaging processes resulting in an average plastic saving of 35.21% per operation and an average CO2e saving of 37.73% per operation.

Do you have your parcel delivered to your home, or a click-and-collect point?

Parcel home delivery: convenient for you, but not so much for the environment! Research points out that “with no interventions, we can expect a 32% jump in carbon emissions from urban delivery traffic by 2030.”  The scenario can be tipped in the favor of the planet, however, if more online shoppers opt to pick up their parcel in a nearby automated lockers or click-and-collect point. In sum, the parcel would travel the same distance, but if the collector takes the bicycle or drops by on their way to work (a trip that they would have done anyway), the environment benefits a great deal.

Impressively, the Accenture report quoted above, calculated that last-mile emissions could be reduced between 17 and 26% by 2025 through collection points. Therefore, as an online shopper, your choice of delivery location matters a great deal!

The premium provider 4SELLERS, a specialist in complete e-Commerce solutions, and Kuehne + Nagel, one of the world’s leading providers of logistics solutions, are now working together more closely. Within the scope of a strategic partnership, the two companies will primarily cooperate in the area of fulfilment, i.e. physical logistics services. This means that 4SELLERS’ customers will not only have access to the extensive e-Commerce solutions previously available, but also to additional logistics services. These include the provision of storage capacity, the receipt and storage of goods as well as their picking, packing and handover to transport service providers for delivery to end customers. The range is primarily aimed at growing medium-sized enterprises, which benefit from standardised services and prices. Deliveries are possible both within Germany and abroad.

Within the scope of the partnership, Kuehne + Nagel provides its storage capacity throughout Germany. The goods are solely stored at sites in Germany. This ensures that goods and shipments are processed in close proximity to the end customers, enabling them to benefit from short delivery routes and processing periods.

“It takes strength and power to implement visions in the field of e-Commerce. We are delighted to have such a strong partner, which can ensure great reliability and constancy even in the B2C sector and at peak delivery times. With sites in over 100 countries, Kuehne + Nagel also acts as the perfect platform for growing retailers to expand their international business operations. 4SELLERS aims to grow with its customers. The partnership with Kuehne + Nagel marks a further milestone in the attainment of this goal”, explains 4SELLERS CEO Christian Meier.

“e-Commerce fulfilment has been an important growth driver for Kuehne + Nagel for many years. We are not only working with the world’s leading companies, but also focussing on small and medium-sized enterprises. The partnership with 4SELLERS is therefore of great strategic importance to us. Our aim is to increase our market share in this segment, too,” states Matthias Weiner, Member of the Managing Board of Kuehne + Nagel Germany responsible for Contract Logistics.

Der Premiumanbieter 4SELLERS als Spezialist für ganzheitliche Komplettlösungen im E-Commerce und Kühne + Nagel, einer der weltweit führenden Anbieter von Logistik-dienstleistungen, arbeiten in Zukunft zusammen. Im Rahmen einer strategischen Partnerschaft werden die beiden Unternehmen vor allem im Bereich des Fulfillments, der physischen Logistikdienstleistungen, kooperieren. Kunden von 4SELLERS können damit neben den bisher schon umfangreichen E-Commerce-Lösungen auch auf weitere Logistikdienstleistungen zurückgreifen. Dazu zählt neben der Bereitstellung von Lager-kapazitäten, dem Empfang und der Einlagerung von Waren, dem Kommissionieren und Verpacken auch die Übergabe an Transportdienstleister zur Belieferung der Endkunden. Das Angebot richtet sich vornehmlich an wachsende mittelständische Unternehmen, die von einheitlichen Leistungen und Preisen profitieren. Es gilt für Lieferungen innerhalb Deutschlands und ins Ausland.

Kühne + Nagel bringt seine Lagerkapazitäten in ganz Deutschland in die Zusammenarbeit ein. Die Waren werden ausschließlich an Standorten in Deutschland gelagert. So wird sichergestellt, dass Waren und Sendungen in der Nähe der Endkunden verarbeitet werden können. Kunden profitieren damit von kurzen Lieferwegen und Bearbeitungszeiten.

„Um Visionen im E-Commerce umzusetzen, braucht es immer Kraft und Power. Wir freuen uns, einen so starken Partner gewonnen zu haben, der selbst bei hohen Lieferspitzen eine große Zuverlässigkeit und Konstanz auch im B2C-Bereich gewährleisten kann. Mit Standorten in über 100 Ländern bietet Kühne + Nagel zudem für wachsende Händler eine perfekte Plattform für den Ausbau des internationalen Geschäfts. 4SELLERS hat das Ziel, mit seinen Kunden zu wachsen. Durch die Kooperation mit Kühne + Nagel wurde ein weiterer Schritt getan, um dieses Ziel zu erreichen“, erläutert 4SELLERS-Geschäftsführer Christian Meier die Zusammenarbeit.

„Das Geschäft des E-Commerce-Fulfillments ist für Kühne + Nagel schon seit längerem ein wichtiger Wachstumstreiber. Wir kooperieren nicht nur mit den global führenden Unternehmen, sondern haben auch kleine und mittelständische Unternehmen im Fokus. Die Partnerschaft mit 4SELLERS ist für uns daher von strategischer Bedeutung. Unser Ziel ist es, unseren Marktanteil in Deutschland auch in diesem Segment auszubauen,“ sagt Matthias Weiner, für Kontraktlogistik zuständiges Mitglied der Geschäftsleitung von Kühne + Nagel Deutschland.

JD.com procures goods from global brands to support the growing demand from Chinese consumers for overseas products. Previously, goods were shipped directly from the brand manufacturers and inspected at destination warehouses in mainland China, but often products arrive damaged, expired or in incorrect quantities. To address these challenges, Kuehne + Nagel collaborated with JD.com to design a ‘Transfer Centre’ approach – a global supply chain solution which incorporates quality control checks at the consolidation warehouse at origin, prior to shipment to China.

The Transfer Centre covers various activities, including rigorous cargo inspection, inventory count and pallet packaging check, all supported by state-of-the-art information systems integrated with JD.com’s warehouse management system. SKU level capture of inventory at origin gives JD.com greater end-to-end control over supply chain inventory. The Transfer Centre at origin setup also allowed JD.com to maintain closer relationships with brands, benefiting JD.com’s consumers with improved product availability and guaranteed quality.

Han Liu, General Manager of International Supply Chain, JD Logistics said: “We are pleased with the new Transfer Centre Kuehne + Nagel has designed for JD.com and the successful implementation of the project in Japan. We are confident that the improved supply chain will provide our brand partners with an even more reliable e-commerce channel to market while further assuring that our users always receive goods of the highest quality when shopping on JD.com”.

Wong Siew Loong, President North Asia Pacific, Kuehne + Nagel said: “Kuehne + Nagel partnered with JD.com to set up a solution improving the integrity of their end-to-end supply chain. Within a challenging environment we were able to develop a blueprint for JD.com’s Transfer Centre approach and implement this project in Japan. This collaboration is in line with Kuehne + Nagel’s focus on supporting the supply chain needs of China’s e-commerce leaders. We look forward to working on the establishment of other Transfer Centres across the globe in the near future”.

Designed to meet the needs of South African retailers, the solution offers seamless e-commerce fulfilment including international freight, customs clearance, dedicated e-commerce warehousing, value added services as well as highly efficient and innovative last mile deliveries. Maximum visibility and transparency are ensured through state-of-the-art IT systems and technology.

The cooperation leverages the core competences of both companies, Kuehne + Nagel‘s expertise in international freight forwarding and supply chain management and OtD’s comprehensive distribution network based on its strength in e-commerce.

“Kuehne + Nagel is the perfect partner for us to offer a full end-to-end supply chain solution to South African retailers who are looking for a one-stop shop that offers all services from freight and custom clearance to distribution and e-fulfilment. Our combined solution makes us unique in the South African market,” says Media24 eCommerce CEO Vincent Hoogduijn.

Marcus Balzereit, Managing Director Kuehne + Nagel Southern Africa, says: “Kuehne + Nagel is proud to partner with Media24 as the leading media and e-commerce company in South Africa. This cooperation is in line with Kuehne + Nagel’s global strategy to digitalise logistics services as well as to specifically meet the evolving needs of our fast growinge-commerce customers and to further increase their efficiencies.”

Since more than a year, Alibaba.com’s paid members in China have been able to instantly obtain quotations, book pickup and destination delivery services for airfreight consignments via Kuehne + Nagel’s digital solution KN FreightNet on Alibaba.com. The e-commerce relationship has already been extended to include less-than-container-load (LCL) solutions as well. Now, the strategic partnership will draw closer cooperation between the e-commerce giant and Kuehne + Nagel with intent to expand the scope of logistics services on offer in the near future to cover the various modes of transportation (air, sea, rail, overland) and contract logistics outside China.

Steve Su, Director of Logistics at Alibaba.com, said: “We are pleased to partner with Kuehne + Nagel to offer our SME customers comprehensive logistics services, enabling them to capitalise on cross-border trade opportunities.

”Wong Siew Loong, President North Asia Kuehne + Nagel, said: “We are excited to enter this MoU with Alibaba.com bringing together Alibaba’s e-commerce penetration with Kuehne + Nagel’s worldwide logistics capabilities. For Kuehne + Nagel, the establishment of this relationship is in line with our global strategy to digitalise logistics services in order to meet the evolving needs of customers today. We look forward to further developing this cooperation by expanding the scope of our e-commerce logistics offering to Alibaba customers in the future.”

Kuehne + Nagel has also identified a number of selected packaging providers at country level. Global customers will benefit from the advantages of local material sourcing, design and engineering complying with local requirements and market preferences.

Gianfranco Sgro, member of the Management Board of Kuehne + Nagel International AG responsible for Contract Logistics, says: ”At Kuehne + Nagel we aim at innovating systems and processes to seamlessly serve our customers and to make processes much faster, better and leaner, regardless of industries or geographies. With this strategic enhancement of our contract packaging services, we expect to see significant growth across a number of key markets and anticipate deploying hundreds of cobots in our operations in the next few years.”
 

The logistics centre will be equipped with advanced technology and automation solutions to help improve workflow processes, reduce time required to pick, pack and ship items and enable orders to be fulfilled faster.

20.000 m² of the warehouse space will serve the Fanuc Europe Corporation as a European Distribution Centre and a Product Customisation Centre for Robots and Robomachines. In addition to the warehouse operation, Kuehne + Nagel will manage the distribution of all Robots and Robomachines to the European market.

The remaining space is designed to support customers in their growing demands for integrated end-to-end solutions in Luxembourg, with a main focus on industrial goods and eCommerce activities.

Etienne Schneider, Deputy Prime Minister and Minister of the Economy, welcomed Kuehne + Nagel's decision: "Kuehne + Nagel's expansion in Luxembourg is a mark of trust in our country as a prime logistics hub in Europe. This project is also a significant step towards the implementation of the logistics action plan that foresees, among others, to develop the Eurohub Centre site as a logistics park in Contern next to the Eurohub South logistics park in Bettembourg-Dudelange."

Kevin Nash, Managing Director of Kuehne + Nagel BeLux said, “We are very excited about the expansion of Kuehne + Nagel in Luxembourg. This new warehouse and distribution centre underlines our commitment to leverage on the prime position that Luxembourg offers within Europe enabling us to provide best in class end-to-end solutions to our customers”.

The new Kuehne + Nagel Contern logistics centre is expected to be completed by the end of 2016.