Fewer unsold items, less waste, better production, or reproduction, these are the objectives of the Anti-Waste and Circular Economy law, known as the AGEC law. Almost two years after its adoption, several dozen measures entered into force on January 1, 2022 – reshuffling the logistics cards.
All French industry is affected, and the furniture sector is no exception.
Among the 130 articles listed in the law, furniture businesses are required to offer their customers a removal solution (“1 for 1” or “1 for 0”) as well as the management of unsold items so they don’t have to destroy them.
“79% of consumers consider that their purchasing decision might depend on whether the business they’re buying to is committed to sustainable development or not” (Capgemini, July 2020)
This Legal obligation pushes manufacturers and distributors to adopt new behaviours in order to please consumers that are more and more mindful of environmental issues. Moreover, the competition is sometimes well engaged on the subject.
Optimizing collection circuits, recycling, and valuing old goods to give a second life to furniture, this is the mission of TRUSK – a key player in last-mile delivery, specializing in the transport of large parcels in France. (>30kg).
Committed to a zero-emissions strategy for two years, TRUSK helps its partner to combine environmental and economic interests.
Since January 2020, the freight forwarder has broken with the linear economy and offered to its partners the possibility of recovering their customers’ used furniture on the same day. All the parties thus participate in the development of a social and solidarity economy.
The Freight Forwarder answered YES to his partner’s call in the beginning of December when they got the news that they had to implement this service the next month. Indeed, for the thousands of manufacturers and distributors this obligation has a strong economic impact: for each product delivered it is now an additional potential cost of 10 to 20 € excl. tax when the customer requests the removal of his old furniture. These costs are added to a last mile delivery which already weighs heavily in the income statement of companies.
“We see a lot of players making the customer journey more complex with inflexible recovery dates. This position strongly degrades the customer experience” says Antoine Vercken (Sales Director of TRUSK).
The good solution? Optimize the logistics of the end customer and the carrier to generate more benefits (satisfaction and costs).
By ensuring collection at the same time as delivery (vs separate delivery and collection), the distributor saves up to 50%!
Let’s not forget that for thousands of retailers and e-merchants, these government measures have a significant economic impact. Indeed, each product delivered represents an additional potential cost of €10 to €20 excluding VAT when the customer wishes to have their old furniture taken back.
These costs are added to a last mile delivery which already weighs heavily in the income statement of companies.
A month after the law was set, demand is on the rise for this type of service that retailers must provide free of charge to their end customers.
However, TRUSK notes a notable disparity depending on businesses and types of products to be recycled: the recovery of old sofas does not exceed 5%, while for some bedding players reaches 20%.
Finally, keep in mind that this legal obligation is primarily intended to limit waste and promote the circular economy: companies must simply learn to value it.
TRUSK is also helped by the young shoot SmartBack to entrust second-hand products to associations.
Read all “Expert Opinion” articles on the SprintProject blog
This post is also available in : Français (French)