DistantNews
Support us
Norfos's Bold Experiment Pays Off: Shoppers Clear Shelves, Waste Shrinks Dramatically

Norfos's Bold Experiment Pays Off: Shoppers Clear Shelves, Waste Shrinks Dramatically

From Delfi · () Lithuanian

Translated from Lithuanian, summarized and contextualized by DistantNews.

At a glance

In-depth Named sources Outcome reported
  • Lithuanian retailer "Norfos mažmena" has implemented a closed-loop logistics system, recycling 99.9% of primary paper and plastic packaging.
  • The system utilizes automated industrial presses to compact cardboard waste and digitizes administrative processes, significantly reducing paper usage.
  • This initiative has led to a dramatic decrease in food waste, with only 0.4-0.6% of goods being written off, far below the EU average.

Lithuanian retailer "Norfos mažmena" has achieved remarkable efficiency and environmental gains through a radical overhaul of its logistics and administrative operations. The company's board chairman, Dainius Dundulis, revealed that many of their eco-friendly solutions stemmed from a pursuit of maximum operational effectiveness, which has yielded tangible environmental benefits.

A major challenge in the retail sector is the sheer volume of transport packaging. Norfos has established a closed-loop logistics system that allows nearly all primary paper and plastic packaging to be given a second life, recycling 99.9% of it. Only a minimal amount of heavily contaminated raw materials ends up in mixed municipal waste. This success is attributed to both diligent staff work and investments in modern equipment, including automated industrial presses in larger stores that compress cardboard waste into dense 400-kilogram bales.

This system and equipment not only return almost all used primary packaging for recycling but also transport it more sustainably. The powerful presses used in stores allow for maximum transport efficiency, preventing wasted funds on 'air transport'.

— Dainius DundulisDainius Dundulis explains the benefits of Norfos's closed-loop logistics system and its impact on transport efficiency.

"This system and equipment not only return almost all used primary packaging for recycling but also transport it more sustainably," Dundulis explained. "The powerful presses used in stores allow for maximum transport efficiency, preventing wasted funds on 'air transport'." The collected cardboard is sent to a recycling company in Klaipėda, while used plastic packaging goes to factories for new product manufacturing. Norfos plans to expand this automated equipment, which requires minimal human labor and energy, to other network locations.

We save resources for both accounting and physical storage – the premises are emptying out each year.

— Dainius DundulisDainius Dundulis describes the resource savings achieved through the digitalization of administrative processes.

Simultaneously, an administrative revolution has occurred. Paper is now used only in exceptional cases, primarily when different companies' digital systems fail to communicate. E-invoices are standard between Norfos stores and their supplier "Rivona," eliminating paper consumption. With electronic document management, the need to store tons of paper receipts and other documents for 10 years has vanished, saving resources for both accounting and physical storage. Dundulis highlighted the practical advantages: "We save resources for both accounting and physical storage – the premises are emptying out each year."

Purchasers have also noticed the changes. Through the loyalty app, customers can opt out of paper receipts entirely. The digital system also serves a protective function: if a customer accidentally tries to put an expired item in their basket, the system blocks the purchase. "This is our protection for customers, guaranteeing they cannot even buy food products that may be potentially dangerous to their health," Dundulis stated. The company's radical reduction in food waste is also notable; while EU retail food waste averages around 8%, Norfos writes off only 0.4-0.6% of goods for disposal, significantly outperforming the market average.

This is our protection for customers, guaranteeing they cannot even buy food products that may be potentially dangerous to their health.

— Dainius DundulisDainius Dundulis explains the safety feature of the digital system that prevents the sale of expired products.
DistantNews Editorial

Originally published by Delfi in Lithuanian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.