RE-ZIP is building a cost-efficient returns infrastructure with Mily Tech

Read on to see how RE-ZIP, a circular packaging concept, is establishing an efficient returns infrastructure for convenient packaging drop-off and a greener Europe with Mily Tech. 

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About RE-ZIP

RE-ZIP connects e-commerce players to make reusable packaging convenient and affordable. It enables webshops to offer customers a sustainable alternative to disposable packaging, which can be returned to one of RE-ZIP’s drop-off points and used repeatedly. 

With the vision to end single-use packaging, RE-ZIP started the EU Circular Packaging Infrastructure project, supported and co-funded by the EU LIFE Programme. The project aims to test and validate the circular packaging concept and establish an efficient return infrastructure across multiple countries, circulating packaging at a lower cost than the production of single-use packaging today. 

With the project partners RAJA, Boozt, and Mily Technologies, RE-ZIP moves forward on this journey. 

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Expanding returns infrastructure in Denmark and the challenges ahead

As a Danish-based company, establishing a stronger presence in Denmark first and then moving on to other markets made the most sense. However, this was not without challenges.

It takes a long time to change people’s habits. That’s why we’re partnering with more webshops and building a dense and convenient network of drop-off points.
Thomas Fugl
CCO and Co-Founder, RE-ZIP

To scale its impact, the RE-ZIP team needed to increase the density of the returns network and address the issues at hand:

• Disperse returns causing high costs - RE-ZIP partners with a strong logistics partner in Denmark, DAO, using their existing network of shops as drop-off points. However, the returns were spread across multiple locations, with fewer returns at each site, leading to increased costs per item for everyone involved. To enhance efficiency, RE-ZIP aimed to consolidate returns to attain a higher volume per drop-off point and achieve a better cost than single-use packaging.
• Finding reliable partners for network expansion - RE-ZIP wanted to add more drop-off locations outside the existing logistics network, such as shops, cafes, and similar places. However, these drop-off points needed to be near the DAO’s shops so staff could easily reach them and deposit the folded boxes and bags. This approach could improve the consolidation of items while ensuring more convenience. But, the challenge lies in narrowing down the list of potential locations and identifying the most suitable partners.

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Making the returns network more efficient with Mily Tech

As a project partner, Mily Tech provided RE-ZIP’s team with a solution to help answer spatial questions while supporting their specific needs. 

Our goal is to shift from individual returns to bulk or consolidated returns, lowering CO2 emissions and costs. The Mily Tech platform will help us ensure we have enough drop-off points across the whole area while optimizing the network to avoid competition between locations.
Lars Schäfer Møller
CEO and Co-Founder, RE-ZIP Denmark

In the current phase of the project, RE-ZIP uses the OOH delivery analytics solution to:

• Visualize the existing partner locations, potential drop-off points (points of interest), and the distribution of returns.
• Narrow the list of potential new locations by generating optimal location recommendations based on different data layers.
• Track return rates to make data-driven decisions on expansion and improvements to lower costs per item. 

“I don’t think there is another tool like this for these types of analysis. I’ve been a fan since day one when I first saw an early version of the platform. It’s a fantastic tool, and I’m glad to know it will support our goals at a bigger scale,” says Thomas Fugl.  

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Moving forward and establishing a strong infrastructure in new markets

RE-ZIP plans to use the learnings from Denmark and expand to other markets, including France, Belgium, and the Netherlands.

The team will continue to use the Mily Tech platform to plan the expansion of the returns infrastructure in new markets and manage the existing locations. During these project phases, the platform will enable RE-ZIP to understand how each partner location performs, adjust the strategy based on historical data, and ensure continued collaboration with reliable and efficient partners. 

Are you looking for a solution to help you scout locations and optimize the pick-up and drop-off network? Request a demo and see how Mily Tech can help. 

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🇪🇺 The LIFE RE-ZIP project is co-funded by the European Union. Views and opinions expressed are, however, those of the author(s) only and do not necessarily reflect those of the European Union or CINEA. Neither the European Union nor the granting authority can be held responsible for them.