Reverse Logistics in Urban Logistics: One of the keys to profitability

Introduction

Urban logistics is a crucial issue for today's major metropolises, where optimizing goods flows is essential to reducing traffic congestion and CO2 emissions, and improving the quality of life of city dwellers. Among the many innovations, reverse logistics and cyclelogistics stand out as sustainable and efficient solutions. This article explores how the combination of these two approaches can revolutionize returns and waste management in urban environments.

What is reverse logistics ?

Reverse logistics refers to the process of managing product return flows, from points of consumption to points of departure or processing. It encompasses the return of goods, waste management, recycling and repackaging. In an urban context, reverse logistics is essential for managing product returns linked to e-commerce, as well as waste generated by commercial and domestic activities.

The Importance of Reverse Logistics in the Urban Environment

1. Waste reduction: By optimizing waste collection and recycling, reverse logistics helps to reduce the ecological footprint of cities.
2. Returns efficiency: Efficient management of product returns minimizes costs and processing times.
3. Circular economy: Reverse logistics promotes a circular economy by reusing and recycling end-of-life products.

Cyclelogistics: An Ecological and Efficient Solution

Cyclelogistics, or bicycle logistics, is a green alternative to traditional modes of transport. It uses cargo bikes to deliver goods and collect returns and waste in urban areas. Cyclelogisticians equip themselves with capacity trailers to carry out their deliveries, enabling them to be more efficient, and in particular to deliver pallets by bike. Here's why it's the solution of choice :

1. Reduced CO2 emissions: Cargo bikes emit no CO2, helping to combat air pollution.
2. Traffic flow: Bikes can weave in and out of traffic and use cycle lanes, gaining in efficiency by avoiding traffic jams.​ 
3. Easy access: Bikes can access pedestrian areas and narrow streets inaccessible to motorized vehicles.

Synergy between Reverse Logistics and Cyclelogistics

By integrating reverse logistics with cyclelogistics, players can gain in efficiency and economic performance. Here are a few concrete examples of this synergy :

1. Biowaste collection: this is the most frequently encountered scenario. After a delivery, cyclelogists collect biowaste from their customers or restaurants on the return journey, so as not to return empty. 
2. Sending goods: most cyclelogistics deliveries are B2B. To save time, the delivery driver can drop off a pallet and leave with a full pallet to be delivered further on or handed over to the carrier.​ 
3. Waste recovery: cardboard, plastic and empty pallets can be pooled on delivery drivers' return journeys.

K’livéo in Angers reports a 22% improvement in profitability thanks to reverse logistics 

A vélo 37 is based on a model where the diversification of activities makes each return trip profitable: waste collection, pizza delivery, shopping, dry cleaning collection and delivery, etc. 

Waste collection is also a business model in its own right, as illustrated by Synchronicity in Marseille. 

Conclusion

Reverse logistics and cyclelogistics offer a winning combination for players wishing to improve their economic performance on the return journey, initially planned to be empty. By promoting the adoption of these sustainable solutions, metropolises can not only respond to contemporary logistics challenges, but also create healthier, more liveable urban environments for their inhabitants.

To find out more about the benefits of cyclelogistics and best practices in reverse logistics, take a look at our other articles and resources. Together, let's build greener, more efficient cities!