Belgian and Sustainable – Foodbag’s Reusable Boxes

Since mid-November, it’s been possible for all Foodbag customers to have the ingredients for their weekly menu delivered in a reusable box. ‘We opted for a gradual introduction, region by region. This gave us time to test everything thoroughly and fine-tune our logistics properly,’ says Gustave Lorré, Business Project Manager at Foodbag.

The concept behind Foodbag is gradually becoming well known and is very simple: customers put together a weekly menu on the website, choosing from over 35 dishes. The ingredients are then neatly delivered to their home or collected via a Collect & Go point of Colruyt, which is also the company’s main shareholder. What’s unique is that Foodbag is focussing on Belgian products and local suppliers.

A cautious approach

The ingredients for the weekly menu are packaged and delivered in a large cardboard box. The idea for a reusable box emerged more than three years ago. ‘It was a suggestion we often saw coming up in our annual surveys. It made sense, because anyone who orders from us every week will have cardboard piling up’, says Gustave Lorré.

Foodbag took a cautious approach. ‘Our first step was to start looking for the right box. We looked at different types: folding crates, nestable crates, with or without lids and so on. In the end, we opted for reusable crates with a fixed lid, so that they can be properly closed and the lids can’t be lost.’

Impact on logistics

The size of the reusable box was also carefully considered. ‘It soon became clear that the boxes had to have the same dimensions as the cardboard ones. As we don’t want to force our customers to switch, the single-use boxes and reusable boxes will continue to coexist. However, this means that they have to be filled on the same production line and stacked and transported in the same truck.’

After use, customers simply return the boxes to the driver on the next delivery. ‘It’s simple for the customer, but still takes some getting used to for our drivers. We also urge them to ask customers if they have any empty boxes left.’

Return logistics also have a major impact on the distribution centre: the returned boxes must be registered – using manually scanned RFID tags – and then thoroughly cleaned. ‘We’ve set up a new washing line together with our partner near our central distribution centre in Antwerp.’

Costs in line with cardboard boxes

Finally, the question of cost was considered in detail. ‘Purchasing the reusable boxes represents a significant investment, as does setting up the return logistics’, says Gustave Lorré. ‘Even so, we’ve found that the cost is roughly in line with cardboard boxes. When we made the original business case, reusable boxes were even slightly cheaper, but cardboard prices have since fallen. Although that could soon change again.’

Customers pay a €15 deposit for use, which they pay at the time of ordering. Once the box is back at the depot, the deposit is converted into a credit that’s automatically deducted from the next order. Those who order on a weekly basis often have two guarantees running: one for the box they have at home and one for the order yet to be delivered. ‘This did lead to some confusion at first, but we’ve ensured that customers can easily and transparently track outstanding guarantees in their account’, says Gustave Lorré.

Ready for further scale-up

Foodbag opted for a gradual roll-out of the reusable boxes. ‘We started in September last year with about 200 customers in the Antwerp region and have since systematically opened up postcodes in our system. Above all, we wanted to build up gently and not overwhelm our organisation. A year later, we were already at 1,500 customers, and since mid-November the option has been available to all our customers.’

Today, about 10% of customers choose the reusable boxes, without significant communication. ‘We now want to increase that figure further through additional promotions and incentives. Moreover, the project has given us the confidence to go a step further and also explore reusable options for packaging ingredients’, Gustave Lorré concludes.

Foodbag’s advice

• Keep it simple. You won’t be able to implement a system in your organisation that’s too complex and you won’t be able to sell it to customers.
• Take your time. Take a step-by-step approach so that you can properly assess the impact on your logistics and your organisation. Only then scale up further.
• Involve everyone. Involve your staff, suppliers and partners. Clearly explain where you want to go and take account of their feedback every step of the way.