Work to streamline logistics has been ongoing for several years and is based on the Sustainable E-commerce network. The network was founded by Ehandel.se in 2019/2020 and subsequently developed into an independent industry organization with around 150 members, including major players such as Amazon, Apotea, Lyko and Boozt.
In March 2024, Sustainable E-commerce was incorporated into Swedish Trade and merged with their network for sustainable e-commerce deliveries. The aim was to give the work greater reach and increased resources.
With Sustainable E-commerce, we are further strengthening our commitment to making e-commerce more sustainable. Together with our members and expertise and our existing network within sustainable e-commerce deliveries, we are investing heavily in making Swedish e-commerce even more competitive and sustainable, commented Sofia Larsen, CEO of Swedish Trade, during the merger.
Patrik Rees, chairman of Sustainable E-commerce, agreed:
We are incredibly proud of what we have achieved in such a short time. Together with Swedish Trade, we are creating entirely new opportunities where our members can continue their work with increased resources and greater reach to drive the sustainability agenda forward.
Significant Efficiency Gains Mapped
The underlying problem in the value chain is that goods are traditionally delivered in small retail packages containing a limited number of products, for example six-, eight- or twelve-packs. This creates time-consuming handling when the goods arrive at the warehouse and need to be repackaged for e-commerce or store use.
Now, when these packages are replaced with larger and more adapted units – in pilot tests carried out by, among others, Apotea, Apoteket, Kronans Apotek and Karo Healthcare – significant efficiency gains arise.
The results from E-com ready 2.0 show the following average improvements in inbound flow:
- 88 percent lower costs: Driven by reduced time consumption and reduced packaging costs.
- 77 percent reduction in climate impact: Measured as reduced carbon emissions and lower energy use.
- 64 percent reduced resource use: Measured as a reduced amount of packaging material in kilograms.
- 23 percent improved working environment: Measured as reduced occupational health risks during, for example, unpacking.
This is one of the most concrete measures trading companies can take to both lower costs and reduce their climate impact. The potential is enormous, says Per Ljungberg, Innovation Manager at Swedish Trade.
Apoteket also welcomes the outcome.
We see very large efficiency and climate benefits in the pilot tests we have carried out and are now implementing e-com ready solutions together with our suppliers for as much of the range as possible, says Christoffer Andersson, Head of Logistics Development at Apoteket.
From E-com ready to Omni ready
The report's main conclusion is that the E-com ready concept should be extended to also encompass all of retail through a so-called "Omni ready" standard.
E-com ready focuses on replacing small packages with large transport units, such as entire e-commerce pallets. This provides maximum efficiency but is currently limited to certain specific goods flows. Omni ready instead means that the packaging is scaled up within existing logistics flows, for example by going from eight-packs to thirty-two-packs. The effect per individual product will be slightly lower, but since the solution can be used broadly across all of retail, the total potential will be significantly greater.
Omni ready makes it possible to streamline large parts of retail, not just e-commerce. This is an issue for the entire industry, says Cecilia von Stockenström, Business Developer e-com at Kronans Apotek.
However, in order for the industry to switch over, the initiative needs to be spread further. A crucial success factor is cooperation between suppliers, retailers, carriers and packaging actors.