Logistics service provider

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Returns logistics: automated, sustainable and future-oriented

Returns have become an integral part of e-commerce - and continue to pose one of the biggest logistical challenges, particularly in the fashion segment. High volumes, short processing times, complex quality requirements and increasing customer awareness in terms of sustainability require flexible and resilient processes. Together with the workwear brand Strauss, BLG Logistics has established a returns management system with a high degree of automation and a focus on sustainability.

Strauss, a supplier of workwear, relies on BLG Logistics for returns. © BLG Logistics

13 kilometers of conveyor technology, four huge fully automated high-bay warehouses, 400 shuttles and even a shoe factory are located under the roof of the logistics center on the A 66 motorway. The warehouse is characterized by its high degree of technology. The logistics service provider BLG Logistics supported and advised on the planning, development and design process from the very beginning. In contrast to conventional warehouses, for example, it is not the people who pick up the goods, but the goods that come to the people. The returns parcels are also automatically fed to the responsible employees, checked and then put back into the shuttle on the same day. Visual quality control is still carried out manually. This ensures a high degree of care and precision. The automated processes also enable high speed and efficiency. This makes it possible to process both B2B and B2C returns in the shortest possible time. Around 98% of items can be put back into storage and made available for sale.

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The processes do not benefit from modern technology and the continuous optimization of workflows. Data on throughput times, error rates and process quality are evaluated at regular intervals in order to identify further potential for increasing efficiency. This data-driven approach allows Strauss and BLG Logistics to react flexibly to changes in customer returns behavior.

Fast returns processing

Processing a return usually takes a maximum of one to two minutes per item. This is made possible by a standardized checklist that is used by employees. This checklist is the result of a process that is flanked by multi-stage training courses. The aim of this training is not just to teach employees the process. The processes should be internalized so that they can ultimately be carried out intuitively and efficiently. The result is fast, smooth and high-quality returns processing. In addition, the training courses are regularly evaluated and updated in order to be able to react to technological innovations and new product categories. This continuous training ensures a high level of quality in the long term and strengthens the expertise of employees in the returns process. In addition, there are digital learning platforms that give employees access to relevant information and training content at any time.

New technologies make it possible to handle high volumes even during peak phases. Without automation, this would hardly be possible given limited space and resources. Space and employee numbers would increase exorbitantly with manual processing. Strauss and BLG Logistics are also involved in an ongoing project to process damaged returns. With the help of industrial sewing machines, items with minor defects - such as missing buttons, open seams or defective zippers - are professionally repaired. The aim is to specifically extend the product life cycle and conserve resources. At the same time, an important foundation has been laid on which further circular economy projects are already being planned or analyzed in order to broaden and scale the approach even further in the future.

Artificial intelligence in action

As in almost all industries, AI is also a game changer in logistics. One specific example: Autonomous Mobile Robots (AMRs) are a key AI technology for high-performance, flexible and future-proof intralogistics. This technology is being used successfully at Strauss. The 23 AMRs are fully integrated into the logistics process and independently handle the transportation of containers - from the transfer points to the returns workstations. They navigate autonomously through the warehouse, relieving employees of walking distances and ensuring a continuous flow of materials.

The AMRs are controlled via an intelligent software platform that communicates with the warehouse management system in real time. Order data, priorities and current capacities are constantly compared so that the robots are always optimally utilized. This not only reduces walking distances for employees, but also ensures a constant flow of material, even at peak times.

Returns remain in Germany

Unlike many competitors, BLG Logistics does not outsource the processing of returns abroad. While returned goods are often destroyed in the fashion industry, Strauss pursues a clear policy of preserving value: Every returned item is carefully inspected, minor defects are repaired and light soiling is removed. The aim is to put as many products as possible back into circulation - a resource-conserving approach that is in line with the company's sustainability goals.

Technology helps - but consumer behavior remains

Despite all the technical innovations - from virtual fitting rooms and size recommendation systems to AI-supported product recommendations - the returns rate in the fashion industry remains high. This is mainly due to changes in consumer behavior: Customers deliberately order several sizes or colors to choose from and send back items that don't fit. As returns are generally free of charge and easy, the inhibition threshold remains low. Technology can provide guidance here, but is no substitute for a personal sense of style or trying on clothes in person.

BLG Logistics is committed to reducing the returns rate with its logistics contribution, for example with a comprehensive quality system that was developed specifically for the customer. The company claims to be the first German logistics service provider with a scientifically recognized climate protection target. By 2030, the BLG Group aims to be carbon dioxide neutral. The seaport and logistics service provider with a history stretching back almost 150 years is now present in all of the world's growth markets with almost 100 locations and branches in Europe, America, Africa and Asia.

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