1. What inspired the collaboration between GXO Logistics and Virgin Media O2 to tackle single-use plastics?
The collaboration was inspired by a shared commitment to sustainability and operational excellence. We have always evolved our operations to meet changing customer demands and environmental responsibilities and the merger of Virgin Media and O2 (VMO2) in 2021 created a unique opportunity to redesign the supply chain as sustainability was placed at the heart of this transformation. With GXO’s expertise in circular logistics and VMO2’s ambitious carbon reduction goals, eliminating single-use plastics became a natural and strategic priority.
2. Can you walk us through the biggest challenges you faced when transitioning to plastic-free packaging for returning equipment?
One of the biggest challenges we faced was maintaining the integrity and efficiency of reverse logistics. VMO2’s supply chain was previously fragmented across several sites, making standardisation difficult. The shift required not only sourcing and testing eco-friendly alternatives, like Jiffy Green bags and gummed paper tape, but also redesigning packaging processes to ensure durability and protection during transit. Coordinating these changes across a newly consolidated network, while maintaining service levels and customer satisfaction, required rigorous planning, phased implementation, and close collaboration.
3. How has the closed-loop repair process improved efficiency and sustainability in VMO2’s operations?
We leveraged our network of Forward Stock Locations (FSLs). By doing this, VMO2 engineers were able to quickly access and return equipment for diagnostics and repair. This system supports asset reuse and reduces waste, reinforcing a circular supply chain. The consolidation of operations into a central National Distribution Centre (NDC) has further streamlined inventory management, enabling faster turnaround times and reducing the need for new materials. These improvements have not only lowered environmental impact but also contributed to considerable savings.
4. What kind of impact have reusable pallet collars had on waste reduction and logistics performance?
Reusable pallet collars have played a key role. By replacing single-use materials with durable, reusable solutions, we have minimised the environmental impact as the collars support safe and efficient transport of network infrastructure and mobile equipment, particularly within the newly established ‘dark store’ and consolidated NDC. Their use aligns with the broader strategy to create a leaner, greener supply chain, contributing to a 41-tonne reduction in carbon emissions and enhancing operational resilience.
5. Eco-friendly materials like Jiffy Green bags and gummed paper tape were introduced — how do these alternatives compare in cost and durability to traditional plastic options?
The main reason for their introduction, is they have proven to be both cost-effective and durable alternatives to traditional plastics. While initial sourcing and testing required investment, these materials now offer comparable protection for equipment during transit and handling. Their adoption has helped VMO2 eliminate 48 tonnes of single-use plastic, without compromising packaging performance.
6. How do you ensure consistency and quality control when removing single-use plastic packaging before delivery to customers?
Consistency and quality control are maintained through a combination of process standardisation, workforce training, and smart technology. With the consolidation of operations into a centralised NDC, we were able to implement a best-in-class warehouse management system (WMS) that tracks over 40,000 products from receipt to delivery. This system ensures that packaging protocols - including the removal of single-use plastics - are followed precisely. Additionally, a dedicated packaging solutions team oversees the design and implementation of sustainable alternatives, while over 500 cross-trained workers rotate across departments to uphold high standards and operational agility.
7. What measurable environmental benefits have you observed since implementing these changes — beyond the 48 tonnes of plastic saved?
Beyond eliminating 48 tonnes of single-use plastic, the transformation has delivered a 41-tonne reduction in carbon emissions through site consolidation and smarter logistics. The shift from multiple fragmented sites to just a few strategically located facilities has significantly reduced transport-related emissions and energy consumption. The introduction of reusable packaging, eco-friendly materials, and a closed-loop repair process has also minimised waste and supported a circular economy. These changes not only align with VMO2’s sustainability goals but also demonstrate the positive environmental impact of a well-executed logistics strategy can have.
8. In what ways has this initiative influenced Virgin Media O2’s broader sustainability and carbon reduction goals?
This initiative has become a cornerstone of VMO2’s broader sustainability strategy. By embedding circular logistics, reducing emissions, and eliminating single-use plastics, the programme directly supports the company’s carbon reduction targets. It has also set a new internal benchmark for sustainable operations, influencing future projects across the business. The success of the logistics transformation has reinforced the importance of aligning operational efficiency with environmental responsibility, which is now being applied to other areas of the supply chain and beyond.
9. How do you envision scaling or replicating this sustainable logistics model across other industries or partnerships?
The model is highly scalable and adaptable to other industries as its success lies in its modular design, smart technology integration, and emphasis on collaboration. By consolidating operations, leveraging data-driven systems, and prioritising sustainability, businesses can replicate this approach to achieve similar environmental and financial benefits. The use of flexible facilities, cross-functional teams, and reusable packaging solutions makes the model particularly well-suited for sectors with complex supply chains, such as retail, healthcare, and technology.
10. As part of Plastic Free July, what advice would you give to companies starting their journey to reduce single-use plastics in their supply chains?
Start small, but think big. Begin by identifying quick wins such as replacing plastic tape or bags with eco-friendly alternatives and build momentum from there. Engage your logistics partners early and leverage their expertise in packaging design and process optimisation. Standardise procedures across your network to ensure consistency and invest in training to bring your workforce along on the journey. Most importantly, align your sustainability goals with your operational strategy. Meaningful change is possible when environmental responsibility is embedded into the core of your logistics model.