Interview with Lukas Lehmann: PPWR in logistics: a setback or an opportunity?

Lukas Lehmann is a research associate at the Fraunhofer Institute for Material Flow and Logistics IML in Dortmund and has been head of the packaging logistics team since 2019. He develops, tests and optimises packaging systems that can be technically integrated into industrial and commercial processes and are also ecologically and economically viable. He also promotes the topics of packaging software and intelligent load carriers. In this interview, he explains why the new EU Packaging and Packaging Waste Regulation (PPWR) poses major challenges for the logistics industry – and where the opportunities lie.

Lukas, why is the PPWR so relevant for logistics?

Packaging is a cross-cutting issue and is used in every movement of goods – from production and storage to transport. It therefore runs through the entire supply chain. And that is precisely why the PPWR has such a major impact: it not only affects manufacturers and retailers, but also has a direct impact on logistics processes. Transport and outer packaging in particular will show how far-reaching the new requirements are.

Is logistics more of an affected party or a shaper in this process?

Both. On the one hand, logistics companies are affected because they put packaging into circulation and are responsible for its compliance. This means they must ensure that the packaging meets recycling and labelling requirements.

On the other hand, logistics also plays a design role. Take-back, reusable and deposit systems are classic logistics tasks. Organising material flows in both directions – from placing on the market to return – is a core competence of the industry. That is why I see logistics not only as an affected party, but also as an innovator.

In your opinion, how well prepared are companies at present?

Many companies are now aware of the PPWR, but only a few have taken concrete measures. The level of information is still insufficient across the board.

There is particular reluctance in the logistics sector. Companies often overestimate their own data situation, assuming that they have sufficient information. In reality, however, there is a lack of structure, responsibilities and quality. This is also evident in our project work at Fraunhofer IML: companies believe they have everything under control and later discover that data is incomplete or unusable.

In addition, there are companies that are not yet familiar with the PPWR and others that cannot assess the impact on their business. This uncertainty is a real risk.

Where do you see the biggest hurdles to implementation?

The first major hurdle is the uncertainty mentioned above. As long as there are no official guidelines, many companies are taking a wait-and-see approach. But this is precisely what causes valuable time to be lost.

The second hurdle is the data situation. Data does exist somewhere in the company, but there is often a lack of transparency: Where is it located? What is its quality? How can it be organised? Without this basic information, it is impossible to provide evidence, manage reusable systems or generate reports.

Added to this are the binding reusable quotas. Companies that do not yet have exchange or return systems in place must first set these up – which is a big step. The complexity of the requirements is particularly evident in the area of load carrier management: only those who have transparency regarding their container flows and load handling equipment (LHM) will be able to reliably comply with the PPWR.

And finally: the clear allocation of responsibilities. Packaging is often still seen as a ‘consumable’. In future, however, it will be crucial to business. Those who have their packaging processes under control will have a competitive advantage.

Does day-to-day business slow companies down in this regard?

Yes, definitely. Many companies have a full daily business agenda. That leaves little time to deal with long-term issues such as the PPWR. But precisely because the regulation is so complex, it requires time and resources. That is why it is important to clearly assign responsibilities and free up people who can deal with the issue intensively.

Do you have a specific example of where the effects of the PPWR are already being felt today?

Yes, especially in e-commerce. The PPWR stipulates a maximum void ratio of 50 per cent. Today, many mail order companies still have significantly higher ratios: in some cases, only a third of the box is filled with products, while two-thirds consists of air or filling material.

We are working with retailers to improve volume utilisation. This means sending less air and better tailoring packaging to the structure of the items. This saves packaging material, reduces transport costs and makes the process more efficient overall. This is precisely where we can see that although the PPWR is putting pressure on the industry, it can also have positive effects.

Why do companies still invest so little in concrete measures?

One reason is that there are still just under four and a half years to go before the regulation becomes binding. For many, that sounds like ‘still a long way off’. On the other hand, there is uncertainty: there is a lack of guidelines, and many aspects are still unclear. In addition, companies are not lawyers – interpreting the legal text is difficult, and everyone reads something different into it. These factors lead to caution.

What initial steps do you recommend companies take?

I recommend three things:

1. Familiarise yourself with the requirements. Understand how the PPWR may affect your business.
2. Check the database. What packaging master data is available? What is missing? What is the quality of the data?
3. Analyse your own status quo. What packaging do I use, what materials, what processes? This applies in particular to reusable assets and load carriers, the management of which will be even more strictly regulated in future by the PPWR.

These are foundations that can be laid now – regardless of what details will be specified later.

And what opportunities can the PPWR offer despite everything?

Of course, the PPWR entails additional effort and obligations. But it also forces companies to improve their structures. This creates greater transparency, reveals inefficiencies and opens up opportunities for new business models.

Companies that are already well positioned today, for example in the area of reusable packaging management, should leverage their advantages and develop new offerings. And the same applies to everyone: those who prepare for the PPWR early on will gain a clear competitive advantage.

‘We still have just under four and a half years to go. However, companies should lay the groundwork now: clean data bases, clear responsibilities and transparency in the packaging portfolio. Those who tackle this early on will not only be able to comply with the PPWR, but also reap real benefits from it.’

We would like to thank Lukas for this fascinating interview and the valuable insights into the challenges and opportunities that the PPWR presents for logistics!

About Fraunhofer:

Das Fraunhofer-Institut für Materialfluss und Logistik IML in Dortmund gilt als führende Forschungseinrichtung für ganzheitliche Logistiksysteme. Mit über 450 Mitarbeitenden, unterstützt durch zahlreiche studentische Hilfskräfte, deckt es Themen wie Materialfluss, Transport, Verpackung und digitale Logistik ab – immer mit einem Fokus auf praxisnahe Lösungen für Unternehmen.

About Logistikbude:

Logistikbude was founded in 2021 and digitises the management of reusable assets such as pallets, containers and racks used to transport goods. Its user-friendly software enables transparent tracking of containers in real time and provides an overview of stocks, requirements and circulation times. This benefits shippers, logistics service providers and retailers with lower replacement rates and reduced administrative costs – simple, efficient and, above all, resource-saving. The experts at Logistikbude have incorporated their many years of experience in the packaging industry at Fraunhofer IML into the solution.