AMSTERDAM: FedEx Express Europe has joined the Capital Equipment Coalition (CEC) set up in 2018 to preserve and recover the value from the capital equipment they produce, service or influence.
FedEx becomes the only logistics provider to join nine existing coalition members, including Cisco, Dell, KPN and Royal Philips, to increase the circularity of its capital equipment including sortation machines, conveyor rollers, weight check and x-ray equipment, caster decks used in operational facilities and courier handheld devices.
The company has pledged to reduce its material footprint by increasing the use of recycled and recyclable materials in equipment makeup; secure lifetime extensions for procured equipment by focusing on three areas: durability, modularity, and routine preventive maintenance; and retain value of capital equipment by reuse and/or repurposing of the equipment or its components via new solutions and business models.
“As FedEx embarks on a journey towards its goal to achieve carbon neutral operations by 2040, building circular practises into our sourcing and procurement processes will help to reduce the impact of our operations,” declared FedEx Europe COO David Canavan. “Our participation in the [CEC] allows us to engage in shared-value learning experience with other industries and helps us work with suppliers to put sustainability front of mind when we source equipment, whether at size or at scale."
In January 2015 FedEx paid US$1.4 billion to acquire 3PL reverse logistics specialist Genco. At the time the Pittsburgh-based company was self-described as the "forefather in reverse logistics – providing triage, test and repair, remarketing and product liquidation solutions" to technology, consumer, industrial, retail and healthcare customers.
Led by non-profit Circle Economy in conjunction with the Platform for Accelerating the Circular Economy (PACE), the CEC's goal is creating a circular capital equipment industry – from data servers, medical scanners and logistics machinery to equipment for power plants and ships.
Other members are ASML, Damen, enel, Lely and Vanderlande. PACE is a coalition of over 70 business, government and civil society leaders chaired by the heads of Royal Philips and the Global Environment Facility.
Story Type: News