FedEx is banking on reusable packaging

The new solution has proven itself in real retail and sales processes.
Image: FedEx

FedEx and Returnity are offering a new, reusable packaging solution for B2B customers. This is intended to reduce costs and significantly lower CO2 emissions.

Demand for sustainable packaging solutions is growing steadily, especially in the B2B sector, where efficiency and cost optimisation are paramount. In collaboration with Returnity, FedEx has developed a new reusable packaging solution specifically tailored to the needs of B2B shippers. This solution aims to reduce costs while simultaneously lessening environmental impact.

Optimisation of the B2B supply chain

The integration of reusable packaging into traditional parcel networks has so far been hindered by costs, complexity, and logistical challenges. FedEx and Returnity have taken on this challenge and developed a robust, foldable packaging that integrates seamlessly into existing FedEx infrastructures. This solution is particularly suitable for closed-loop systems, such as those found in company-owned fulfilment centres, inventory replenishment, or field service operations, where returns and reuse are controlled and predictable.

The reusable box is designed for up to 50 shipping cycles and can hold up to 50 pounds of goods. This results in a reduction in packaging costs of up to 30 percent per cycle and a potential reduction in CO2 emissions of 64 to 88 percent compared to single-use packaging. These savings were based on a non-return rate of 40 percent or less.

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Scalable solution for reuse

The system has been successfully trialled with several FedEx B2B customers in North America and has proven itself in real retail and distribution operations, including store replenishment, internal transfers, and reverse logistics. Pilot customers reported faster unpacking and restocking processes, increased operational efficiency, improved organisation in the warehouse area, and reduced product damage.

International expansion planned

Currently, FedEx's reusable packaging solution is available in the USA, but the company plans to expand its offering to Australia and Europe. FedEx aims to operate carbon-neutral worldwide by 2040 and sees the introduction of sustainable packaging solutions as an important step in this direction.

Source: FedEx