Measuring CO2 emissions from transportation in a UK retail returns supply chain

Traditionally, there have been three aspects associated with retail returns management: 1) returns avoidance; 2) processing returned products; and 3) disposal of returned items from a retailer’s supply chain, at which point retailers generally consider the transaction has reached a conclusion for that individual product. An often overlooked fourth aspect, however, is around the environmental cost of retail returns, specifically the carbon footprint generated from moving returned products through second life retail distribution channels. This paper examines the case of returned general merchandise retail products — in particular, a UK reverse supply chain for homewares, furniture, white goods and other non-apparel items. It focuses on investigating the environmental cost by determining how much CO2 is created during the return transport processes until a product is retained by a customer and not returned again. Two disposition routes for unwanted retail stock items are examined in detail: first, the more desirable option of premium processing and resale of returned or unwanted items; and second, resale of items that are beyond economic repair through an auction house. The case study presented determines the CO2 emissions generated for each disposition route and highlights the inefficiencies that arise from the fragmented transportation of items sold via the auction house that lead to significantly increased carbon emissions.