Chapter 7 — full chapter
7.1 Distribution and Retail
Companies can optimize transport routes, consolidate shipments, minimize packaging, and prioritize rail or sea freight over air transport. They can also optimize inventory through demand forecasting, digital inventory management and on-demand production to reduce overstock and avoid unsold products. Retailers can introduce reusable packaging, offer click-and-collect services, and provide customers with clear sustainability information at the point of sale. Stores can become circular hubs by collecting used garments, facilitating repair services, supporting resale programmes, and operating efficient reverse logistics systems that recover products for reuse, refurbishment or recycling. Together, these actions reduce environmental impacts while improving operational efficiency and strengthening customer engagement in circular business models.
Zalando has developed one of Europe's most advanced digital distribution networks by combining AI-driven demand forecasting, real-time inventory management, and a network of strategically located fulfilment centres. Its logistics system optimises stock allocation across warehouses, consolidates shipments, and reduces transport distances while improving product availability. Customers can use click-and-collect services, receive transparent delivery information, and choose lower-impact shipping options where available. Through digital inventory optimisation and efficient reverse logistics for returns, Zalando reduces unnecessary transport, avoids excess stock, and improves resource efficiency across its retail and distribution operations.