Products sold through ClearCycle’s returns management process were found to generate on average an 83.46% improvement (4.3kg of CO2 while a product disposed of through an auction house route was determined to generate approximately 26kg of CO2).
The finding was from a new study by The University of Sheffield and Sheffield Hallam University, and is in addition to any emissions produced in shipping the product from the original manufacturer to the retailer, and the initial pre-sale delivery from new.
The study concludes that the auction house sale route likely generates significantly higher CO2 emissions because of the reliance on final customers (those purchasing the lots) to undertake the last-mile distribution activities from the auction house themselves.
Whereas the premium second-life retail disposition option incorporates consolidated outbound deliveries to customers via three delivery routes.
The Power of Consolidating Deliveries
A case study from the report (see the full report) has shown that the ability to consolidate deliveries can greatly improve the efficiency of transportation journeys, and this has a noticeable impact on the amount of CO2 generated.
The premium second-life disposition route benefits from the increased vehicle fill rates that are achieved by consolidation opportunities that the small and large parcel couriers provide. Even the two-person delivery route still maximises vehicle fill by achieving some degree of delivery consolidation.
Such optimisation is simply not possible for single lots and items that are each collected on an individual basis from the auction house and transported in private vehicles.
The findings from this case study can serve as a basis for future studies examining the CO2 generated from returns processing in a UK context.
Sustainability and Financial Performance Key
“Retail and logistics are incredibly complex processes, so an easy way for retailers to achieve a significant saving in their CO2 is just brilliant. Given the financial pressure retailers are under, it’s important that they also get a great ££ return for their returns too, which is also what we deliver.” Daniel Hague, Commercial Director, ClearCycle
Returns processing is still a sector in its infancy, which has created a fragmented reverse supply chain, translating into multi-site processing and (multiple) movements of returned items prior to their resale.
This multi-site approach has led to increased transport emissions as items are transported between sites for processing and preparation for resale.
This study has demonstrated the additional CO2 emissions generated from unnecessary product movements.
Reverse Supply Chain Insight
Quite simply, the more times these items are transported around the reverse supply chain, the greater the emissions generated due to less efficient vehicle-fill rates resulting from the high volume of random one-off items requiring processing and their diseconomies of scale.
For the past several years, ClearCycle has assisted Sheffield University and Sheffield Hallam University with their study into UK Retail Returns, with the academic institutions commissioning in 2023 a piece of research into the carbon impact relating to the transport of returned goods.
The results demonstrate the lower carbon footprint delivered by the ClearCycle business model.
Given that returns, for example, in furniture and homewares alone, typically account for 11% of all items sold, there’s a sizeable impact to be gained by retailers.
With thanks to Erica Ballantyne and Jonathan Gorst for their thorough work!
Here’s the link again to the full report.
Your Brand and Sustainability: The ClearCycle Advantage
Sustainability isn’t just a trend – it’s a necessity.
At ClearCycle, we make it simple for brands to embrace sustainable practices while driving growth.
Our expertise in refurbishing, returns management, and reverse logistics allows us to:
- Maximise the life cycle of your products while reducing environmental impact
- Deliver quality: We professionally cleanse and restore items, ensuring they meet the highest standards before resale
- Build trust: We clearly represent refurbished items, empowering eco-conscious customers to make informed choices.
Our partners, including Swoon dusk Group Oak Furnitureland Heal’s and DFS , trust us to manage their returns sustainably and profitably.
If you’re ready to turn returns and overstock into value, let’s talk. DM our commercial director, Daniel Hague or get in touch here.
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